Importance of Electronic Invoices
The process of moving from manual or paper invoices to electronic invoices comes with a lot of advantages. Most organizations that use the electronic method of invoicing have been able to accrue cuts in their costs. Most firms in the current technological age have started moving from the manual invoices to electronic invoices. The benefits that come with the electronic way of invoicing are discussed below.
Firstly, the electronic invoices will lead to a reduction in the carbon footprint. This is because there will be a reduction in the use of paper invoices. By reducing the paper invoices, the transportation that comes with it will also be reduced greatly. Consequently, this will lead to a reduction in the processing of paper which will in turn reduce the amount of trees used for paper production. Thus, conserving the environment and at the same time leading to a lower carbon footprint. Hence, electronic invoices are more environmental friendly.
Secondly, the use of electronic invoices will make it easier for suppliers to identify and reconcile their accounts. This comes into play when a supplier supplies a given number of commodities, say more than one, in a given period of time. Thus, the supplier will send different invoices for each supply. The customer finds it fit for him/her to pay once rather than paying for each invoice. Thus he/she will combine all the invoices and pay the supplier in bulk. The electronic invoices will make it very easier for the supplier to compare and check his/her invoices with the amount paid.
The third benefit is how the electronic invoices allow for efficiency and effectiveness. This is due the fact that paper invoices will take a long way before reaching to the customers. Thus paper and manual invoice may result in delays in payments. These delays in payment will affect the supplier and his services as he/she will have a deficit. When transporting the paper or manual invoices, they may get lost on transit hence making the supplier to make new ones. The risk of invoices getting lost is eliminated by the electronic invoices thus leading to earlier payments.
Finally, the electronic invoices provide an opportunity for the supplier to serve themselves. In normal occasions, once the supplier sends an invoice, he/she has to check with the customer and see whether the customer received it. After reception of the invoice by the customer, the supplier has to confirm its approval status. The payment date is communicated to the supplier after approval of the invoice. This is a very rigorous process that takes a lot of time. Electronic invoices provide for the elimination of this process. The supplier will be given an online platform where he/she has to follow all the requests of his/her invoice.