What is E-invoicing?
Electronic invoicing (E-invoicing) is the process of sending and receiving digital bills and invoices. In an E-invoicing system, all parties involved in an invoice process, from the seller to buyer and vice versa, must be connected to a network or a cloud platform.
It completely automates the workflow of invoice capture. In E-invoicing, the data from the supplier’s invoice is captured and transferred to the buyer accounts payable system (AP) through the tool.
What are the advantages of moving to invoices?
1. Transparency
E-invoicing offers anytime access into invoice records, and it allows you to keep track of invoices, purchase orders, supporting documentation, and contracts. With the ability to check the audit trails and invoice history this is definitely a more transparent process. Moreover, the best part is all of this could be availed from a simple lightweight application. Moreover due to unique invoice numbers looking up any e-invoice anytime you want becomes easier. You can generate the invoice reference number from einvoice1 portal. Visit Khatabook to learn more.
2. Accuracy
When you use an electronic invoicing solution, you can accurately track the billing process and make payments in real-time. Additionally end-to-end tracking, editing and validation become extremely easy. E-invoicing significantly reduces errors and issues relating to invoicing, leading to greater accuracy, reducing overpayments and completely preventing duplicate payment problems. Hence an E-invoicing system is an extremely useful tool for verifying the delivery of each shipment and keeping proper track of shipments. It allows your organization to settle accounts with your clients in a timely manner. Additionally, a properly configured e-invoice system can even notify you about UPI limit per day.
3. Increased compliance
Regulatory compliance is vital in today’s world. While E-invoicing systems are used to bring about images of complex enterprise solutions and steep learning curves, more and more software providers are developing platforms that make regulatory compliance more accessible for companies.
4. Offers extremely helpful analytics about spending and saving
With the help of E-invoicing, you can track the money you have spent and saved so far. These figures are extremely important for the procurement and management teams. With this data, the company’s leadership can get a glance into opportunities for saving money, cost centres and discounts. Hence this could help in making decisions while saving time and the company’s resources.
5. It is green
When you switch to electronic invoicing, you no longer need to print and mail paper invoices. By embracing energy-efficient E-invoicing, you can reduce the amounts of paper used and hence save money on it.
6. Less Risk
Improved visibility into payments, shipments and other transactions help you avoid invoice fraud, duplicate orders, human error and other issues. A reliable invoicing system can save your company countless hours and resources by streamlining the cross-verification and due diligence process. Moreover, when organizations have efficient, reliable E-invoicing processes in place, the risk of errors is greatly reduced while getting higher efficiency
7. Streamlined & efficient processes that reduce the turnaround time
It’s an efficient way to speed up the receipt of invoices and reduce turnaround time. With it, invoices can be exchanged in any format irrespective of whether they are image-based or text-based. Moreover, with electronic invoicing, you can handle all the accounts payable from a single platform thereby simplifying and streamlining the process. Information can also be synced without duplication from multiple devices since you can access it from anywhere.
