The exchange of an invoice document in an electronic format between a supplier and a buyer is called e-invoicing. For many years, e-invoicing has been a common B2B practice, and it has been a part of Electronic Data Interchange transactions.
Benefits of e-invoicing
E-invoicing is the best idea for a variety of reasons, starting with the ability to automate tasks. Paper invoices that are handled manually by accounts payable systems might take a long time. There is also a high risk of human error, as well as the possibility for paper invoices to be lost.
A company can also use an electronic invoice system to save time and money. Also, to improve the accuracy of their accounts.
Here are the benefits of e-invoicing:
- Easily analyse spending
- Easily analyse performance
- Faster payment
- Tracking is possible
- Easy dispute mitigation
- Easy access to data
- Environmentally friendly
How to get started with e-invoicing?
Your e-invoicing depends on the size and the volume of your business, and the number of suppliers you have. If you are a big company, you will need to spend some time examining your needs and identifying a system that provides the features you require.What invoice systems can I use?
There are several user-friendly, economical invoicing solutions and apps available for small businesses.
For example, you can start sending electronic invoices using your accounting software, like QuickBooks, Xero, Sage and FreshBooks. Some payment processors like SumUp, Zettle or Square, offer e-invoicing capabilities.
Other apps and software:
- Zoho Invoice - It is a popular cloud-based invoicing application for small businesses which has extensive capabilities.
- Zervant - It is an invoicing app for small businesses and entrepreneurs.
- KashFlow - It is a UK-based accounting app with the capability of linking directly to HMRC.
- InvoiceBerry - It is an invoice builder app geared towards micro businesses.