Running a business requires you to issue invoices to be paid for the goods and services you deliver. In the past, invoices were often delivered through postal mail, which may take some time and need to be more reliable. Send bills to customers; businesses now have a quicker and more effective method thanks to the invention of email. In this regard, this article will go through five justifications for companies emailing bills.
E-Invoicing Helps Your Business Save a Tonne of Time
Creating an invoice, printing it, putting it in an envelope, ensuring its proper mailing, and then delivering it to the client the following day is time-consuming. Even sending the invoice by email as a PDF attachment still requires more manual labour than necessary.
This is why e-invoicing is becoming increasingly popular. With just one click, an e-invoice can be sent directly to your client’s accounting software, eliminating the need for manual processes such as sorting invoices and entering invoice data into the financial system.
According to research, processing a paper invoice takes 18 minutes, while creating a PDF invoice takes 10 minutes per invoice. In contrast, creating an e-invoice takes only 5 minutes per invoice.
Furthermore, as businesses continue to search for streamlined solutions to enhance their accounting procedures, many are turning to automated accounts payable systems. These systems integrate seamlessly with e-invoicing platforms, further reducing manual interventions and improving accuracy. By leveraging both e-invoicing and automated accounts payable solutions, companies can achieve a more efficient and error-free invoicing process.
E-Invoice Processing Happens Far More Quickly
When delivering an invoice, sending a physical invoice can be time-consuming and requires considerable effort to ensure it is delivered to the right person or department. On the other hand, electronic invoicing provides a simple and efficient solution. With just one click, an electronic invoice can be delivered to the appropriate party in under a minute, providing significant time savings and reducing the risk of errors.
While basic PDF invoices may seem more convenient than physical ones, they still require several steps to process, such as scanning, optical character recognition (OCR) credit, and verification. This manual process can be time-consuming and prone to errors, potentially delaying payment and causing unnecessary frustration for both parties.
Fortunately, by adopting eInvoicing, businesses can streamline the invoice handling process within their administration software, allowing invoices to be handled quickly and efficiently. Depending on the settings, eInvoicing can even automate the payment process, reducing the time and effort required for both the business and the client.
Real-Time Financial Information About Your Business
E-invoicing provides businesses with immediate real-time knowledge of their financial situation by eliminating the need to process paper invoices, which can take 16 days manually. With e-invoicing, the client’s accounting software handles the processing of the invoice directly, resulting in insights into incoming and outgoing cash flows, improved control choices for the location and status of invoices, and improved cash management for commitments to make payments.
By using e-invoicing, businesses can enjoy real-time cash flow visibility, enabling them to make informed decisions about their financial situation. This can include identifying potential cash flow gaps or surpluses, allowing for proactive management of cash flows to ensure the business remains financially stable.
E-Invoices Are the Most Secure Invoices
Digital bills are highly secure, and human errors are unlikely. Additionally, e-invoices eliminate the risk of misplacing or mishandling documents and ensure they are delivered to the correct recipient. By offering the convenience to pay by email, businesses can streamline their invoicing process and provide prompt customer payment.
To send an e-invoice through the highly secure Peppol network to another business, a Peppol ID is required. This ID consists of unique identification codes that allow other companies to recognize you easily. Certified Peppol Access Points are authorized to issue Peppol IDs upon request.
Your Business Will save Money
In 2012, 62% of businesses worldwide sent invoices as email attachments, resulting in significant cost savings of billions of euros. On average, this approach saved about €1.65 per invoice when considering shipping, material, and handling expenses.
However, the potential savings could be increased by four to five times if the European business community fully understood the benefits of digital invoicing and switched to using UBL invoices.
Bottom Line
Email invoicing has become a popular and efficient way businesses deliver customer bills. Companies may save time and money, boost efficiency, improve cash flow, and receive real-time insights into their financial status by using e-invoicing. E-invoicing also provides a safe and dependable mode of delivery, lowering the chance of mistakes and increasing overall financial management.
