The focus on digital transformation has enabled many business enterprises to save time & boost productivity in their business processes. E-invoicing just happens to be a part of this ecosystem. In today’s post, we’ll see what exactly E-invoicing is and which features make it better than archaic and traditional invoicing.
E-invoicing in digital transformation
If you are not aware, E-invoicing is a low-cost transaction processing system that utilizes information technology to transform a manual or paper-oriented billing into an electronic version of record keeping. The method has many benefits. For example, it eliminates manual data entry, accuracy check, and swapping of software.
We have attempted to cover some more benefits of it in brief below. Also, we have covered one free software and free online service that offer these benefits.
- Keeping track of invoices
- Shorter payment periods
- Environmentally friendly
Before proceeding further, let’s try to understand what is the difference between E-invoice and Digital Invoice? Are they the same?
Well, in the first analysis, we can say both, E-invoice and Digital invoice can be electronically processed for raising payment; however, an E-invoice is mainly created in the seller’s invoicing system. Once created, the file can be downloaded or sent directly to the buyer’s software.
1] Keeping track of invoices
E-invoicing certainly makes it easier to keep track of invoices. For example, you know when an invoice was sent, viewed, and paid when using e-invoicing software. You will also know for sure if the invoice was delivered successfully and viewed by the recipient.
Offers a higher degree of control and insight into the invoicing process
If you use online invoicing software, everything is saved, and any changes made reflect in real-time. Plus, you can access it from anywhere on any device.
2] Shorter payment periods
If an E-invoicing software is connected to a financial system, it can process the bills faster. As such, it can reduce the duration of the payment period and make the process a lot faster. Also, the e-invoices are automatically loaded into the financial system of the receiver. This eliminates the manual input.
A smart way of doing business is to reduce the dependence on the environment to a bare minimum. Using E-invoicing is better for the environment as it does not require the manufacturing of paper products, known to significantly contribute to deforestation. So using an E- invoicing method does not only prove you are not only cautious about the paper but also have a large stake in social responsibility when it comes to preserving the environment.
Having said that if there’s one feature that counts as a shortfall of this software is its fees. Some software might not be completely free as sending a PDF through email. Also, if your invoicing volumes are a bit larger, this software can charge per invoice sent or request a monthly usage fee. So, we have tried to address it by mentioning listing now free E-invoicing software and One Free online E-invoicing service. Find them below.
If you are considering switching to a cloud app (online service) to manage & track all of your invoices from a single dashboard, try ‘Invoicely’.
It helps you stay organized and take control of your invoicing and accounting needs with ease. A good feature of this service is that it lets you send unlimited invoices for free, at any account level. So, save time & effort and get paid faster to secure a steady cash flow for your business with Invoicely.
2] Zoho Invoice
It bears the reputation of being one of the best free invoicing tools for sending invoices. As an online invoicing and payments tool, Zoho offers many of the most important invoicing features. You can add your clients, create estimates, and then build an invoice quickly using that saved data.
Zoho Invoice allows you to send your invoice by email, and then accept payments online through payment gateways like PayPal, Square, and Stripe. The tool can be used for free for unlimited invoices, one user, and up to five customers.
Considering the vast scale of business that is conducted online or through the Internet these days, it would not be surprising to see more and more manually processes become computerized in the future, and such services will have an important role to play!