Electronic invoicing also known as e-invoicing is a way of delivering bills and other information to the clients through the use of electronic communications which is usually the internet. The concern for security by business and acceptance and adoption of e-commerce is increasing. Because of this, the need to shift to electronic invoicing is accelerated. On the other hand, many companies provide electronic invoicing software as well as services.
Cloud-based software are online platforms that help to raise online invoices. These programs help to create and send the invoices with ease and to the clients directly online. Also, online invoicing might not be necessarily e-invoicing, while e-invoices are generally online invoicing.
Generally, e-invoice should contain all information regarding the sale. This makes the e-invoice identical to the online invoice. Nevertheless, the e-invoices should be sent using XML or the Electronic Data Interchange formats. As a result, a creator signature is possible. It is also possible to stamp the sending date and time on the e-invoice. Once the invoice has been sent, it cannot be changed.
Cloud Trade invoicing makes it possible for businesses to use e-invoices. Because of the inefficiencies that come with paper invoices, more businesses are shifting to e-invoicing. Shifting to the electronic invoices is necessary because of the following reasons.
1. It becomes easier to capture digital invoices.
Receiving invoices in paper or email formats add unnecessary costs as well as complexities. Usually, the invoices received through the mail will first be sorted, then opened before they are keyed to the system. Also, when the invoices are sent through email, the documents need to be saved, sorted and could as well be printed and keyed in when there is no a technology in place to automatically extract the data. However, e-invoices eliminates such complexities.
2. Automation of invoice validation.
For the account payable organizations, invoice validation is necessary for processing and approving payment. To confirm the supplier is valid, validation is necessary. The validation will ensure the name and the number of the vendor are matching. However, electronic invoicing allows the account payable department to use data capture technologies to validate such invoices automatically. Otherwise, data entry, as well as manual validation, would be required.
3. Self-service is enhanced.
It’s normally expensive to employ staff to do payment inquiries. For instance, once the invoice has been sent, the supplier will need to contact the buyer in order to confirm receipt as well as invoice approval. Usually, responding to the supplier would actually incur some costs and time as well. E-invoicing eliminate such complexities and costs and issues with payment can as well be solved online.