What is Electronic Invoicing and How it Can Impact Your Business

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Just as the name suggests, electronic invoicing is a simple automatic transmission of invoices between a supplier of products or services and the client. In such a system, you don’t need physical paperwork for the transaction to be marked as complete. If you only thought that an electronic invoicing system is just transmission of the invoice to the buyer, then you are wrong – it involves a much bigger system. The primary and ultimate aim of an electronic invoice system is whereby there is proper integration between the payables department of your buyers and your receivables section. A adequate synchronization sets up a viable and reliable automated system that a business can rely on in furtherance of their objectives. Why should you consider an electronic invoicing system over a paper-based one? It is obvious – to save times and resources. A manual system is susceptible to errors that are void in an electronic system. What this means is that they have a higher cost towards the firm implementing the system.

What Advantages do Suppliers Get From the System?
Shifting to an electronic system of management of your invoices eliminates the numerous problems associated with a paper framework which includes manual entry of data. Your business starts to enjoy lower transaction costs, easier tracking of operations and massive savings that you can transfer to other core business functions. The system allows the supplier to send multiple batches of invoices in an instant. An elimination of manual entry of data ascertains that the errors are significantly minimized. You also don’t need to scan the paperwork for transmission to the buyer. The customer doesn’t get the opportunity to state that late delivery of an invoice made them fail to remit payments on time – the process is instant.

Benefits of Invoices to Buyers
Once a buyer in receipt of an invoice following the purchase of an item or service, they should ascertain that they satisfy the terms of the agreement. Ordinarily, tracking payment deadlines involved a cumbersome process of manually reverting to old invoices to figure out when items are due for payment. With an electronic system, everything is automated such that there are set reminders on when the amounts are supposed to get paid to the supplier. Everything becomes fully automated simplifying the process for the accounting department. Click here to learn more: www.openfactura.cl.

Adopting an electronic invoicing system saves time and money for both parties. Why not integrate it into your system and realize the significant benefits. Learn more here: https://www.huffingtonpost.com/john-rampton/business-trends-in-einvoi_b_10440680.html.

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