The Merits of Electronic Invoices.
Since the introduction of computers, business are striving to limit the use of paper in the transaction process. Given that there are hundreds of invoices which are exchanged on a daily basis in various companies, it only makes sense that people are using electronic invoices. Emailing the invoices was tried by some business people until they realized that it will not cut it because the buyers were taking a lot of time trying to pull out the information they needed from the document. 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 quite straightforward and you will not have to spend hours trying to figure out all the details. You will not have to worry about delays in the delivery of the invoice because the documents are delivered very fast. This is time saving which is something every entrepreneur always works towards.
Businesses which submit electronic invoices will get their 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. These validations can be done through data capture technologies instead of doing the 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.
Email and papers might be lost and this means there will be no processing of the payment. When the loss happens, the debtor will try to find it and you only get notified if they have done the best to recover it in vain and several days will have passed by the time you get to know that the loss happened. The good thing in this process is that it is not just meant to benefit the seller but also the buyer because he or she will be able to see the urgent payments and a good display of the payments so that proper preparations on how to distribute the funds can be made on time.Also, the fact that the payments are made on time means you will not have to resort to borrowing to cover for delayed payments.