Electronic innovation is becoming more and more prominent in recent times as we see businesses look for ways to reduce costs and improve efficiency. One of the innovations with prominence at the moment is eInvoicing. Here’s how eInvoicing works:
It involves sending and receiving invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning.
Benefits for buyers
Most businesses think eInvoicing only benefits the seller, but that’s not true. There’s a lot of good stuff for buyers too:
- Time and cost savings
eInvoicing eliminates the need for manual data entry because invoices pop straight into your software. This also reduces the likelihood of errors, which can lead to further costs and delays.
- Improved accuracy
eInvoicing helps ensure invoices are accurate and complete , reducing the likelihood of disputes between buyers and suppliers. How? Well, eInvoices go straight into your software, so there’s no need to manually enter them in. Not only is it harder to make errors, you reduce the risk of fraudulent invoices too! Anyone who sends an eInvoice via the Peppol network needs to be registered.
- Increased visibility
eInvoicing makes it easier for businesses to keep track of invoices and reduces the chance of losing invoices, which can delay payment and impact your supplier relationships . This is because your software keeps your invoice activity and purchase orders all in the one place.
- Reduced environmental impact
eInvoicing reduces paper usage and helps to lower carbon emissions associated with paper-based invoicing, which can be important for buyers looking to reduce their environmental impact.
Benefits for sellers
In the current economic climate, efficiency is key so here are some of the main benefits eInvoicing can bring:
- Faster payment processing
eInvoicing allows sellers to send invoices to their customers quickly and easily, which can lead to faster payment processing and improved cash flow.
- Reduced manual processing
eInvoicing reduces a lot of manual processing by using your software to create and instantly send invoices to your buyers. No need to create invoices in your software then download a PDF and then put together an email. The other good thing is that eInvoicing shows the status of an invoice so the need for your customers to follow up with you is reduced.
- Increased visibility
eInvoicing provides sellers with real-time access to invoice status and payment information, like when an invoice has been approved and when it has been paid.
Steps to get started
- Find out if your existing software is eInvoicing-capable
- If not, talk to an eInvoicing service provider like MessageXchange
- Fill in a form with your business details and choose which products works best for you
- Get connected to MessageXchange
- Start exchanging eInvoices
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