Why Electronic Invoicing is a Growing Trend
Electronic invoicing is becoming a popular alternative to paper billing. According to one report, online invoicing is growing at a rate of 13% a year.
Advantages of Electronic Invoicing
Why is online invoicing becoming so popular? Here are some benefits both suppliers and clients should consider.
Many suppliers and contractors send invoices in different formats. This creates a lot of confusion for companies are trying to track expenditures and maximize cost-efficiency. Electronic invoices conform to standard templates, which make it easier for the recipient to record data.
Electronic invoices vastly simplify record keeping. Data can easily be exported to a .csv file and stored in an online database. It can save substantial amounts of time for accounts payable professionals.
Reduce Burden on Accounts Payable Departments
The Institute of Financial Operations has found that the number of invoices has grown significantly in recent years. This has created a serious burden for the numerous businesses that still rely on paper invoicing. These businesses should consider using online invoicing to streamline the process.
Vendors will receive payment much more quickly by using electronic invoicing. The typical turnaround time for payment is between one to three days, while they may otherwise need to wait a couple of weeks for a check.
Logistics With Overseas Contractors
ATKearrney has cited volumes of data showing that globalization is drastically changing businesses. A growing number of companies are working with suppliers in other parts of the world. While there are numerous benefits of hiring people abroad, paying their bills can be a logistics nightmare.
Electronic invoicing has greatly simplified the process. It eliminates the need to pay overseas postage fees to render payment and allows recipients to be paid reliably.
More Organizations Turning to Online Invoicing
Online invoicing is becoming the norm for many organizations. In fact, the Italian government recently made it mandatory for contractors working with it to submit invoices over the Internet.
Other companies around the world are looking for new ways to streamline costs. Online invoicing may very well be the norm in the years to come. The following types of organizations are most likely to employ it:
- Companies that work with a large number of overseas clients or suppliers
- Companies that order a large volume of services
- Any organization seeking to make accounts payable more efficient
There are a number of reasons that some organizations are using online invoicing. You may want to consider utilizing an online invoicing system such as the aynax.com free online estimate template if you face any of the challenges outlined above.