Getting To The Point – Payments
The Merits of Electronic Invoices.
Computers have brought a lot of changes in the business world and going paperless is one of the aspects which have been trending for a long time. Depending on the company size, there are businesses which generate hundreds of invoices every single day which is why it only makes sense if the process is automated. Emailing an invoice cannot be considered as e-invoicing because the client cannot get every aspect of the bill at a glance. Also, mail float is quite common which means the emails might be floating around for a while before they are received. The paper invoices have to be mailed through the postal system which is even slower. E-invoicing is constant and the templates are designed in a way that the information will be captured readily. Also, there are no delays in the delivery because the platforms used are defined. The speed of the process is commendable because time wastage is never an issue a business wants to be associated with.
If you are sending electronic invoices, expect to get your money faster. There is usually a protocol for making payments and not getting the figure and writing a check. The buyer will have to validate the existence of the business sending the invoice, the number and vendor name as well as the fact that there was a business transaction between the two businesses. This could have been a lot of work were the companies to go through manual validation. After the invoice has been sent, the vendor will still have to place a phone call in order to confirm that it has been received. This is the process that takes a lot of money in the entire invoicing issue. You can do away with this process if you send electronic invoices.
When using paper invoices or sending the information in email form, there is no guarantee that there will be a chain of ownership until you get the money. Remember that you might not get confirmation of the loss immediately as the other party struggles to find the lost document and this prolongs the payment period even further. Also, the buyer benefits from the electronic invoicing in that the documents are displayed systematically in such a way that upcoming payments are noted and planned for. Also, the fact that the payments are made on time means you will not have to resort to borrowing to cover for delayed payments.
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