Benefits Associated with Electronic Invoices
In as much as some businesses still use the traditional business system of manually creating invoices and mailing them to their clients, the advancement in technology has rendered it inefficient. With the traditional invoicing system, there was no guarantee that the mail would reach the client on time and also it was time-consuming to create. By using electronic invoices, you will not have to worry about the many issues that come with the traditional invoicing system as they are more efficient compared to the latter. By using electronic invoices, you will be able to enjoy a multitude of benefits as will be discussed here.
Through the use of electronic invoices, you will be able to send out your invoices immediately. Considering that electronic invoices can be sent directly to the client, you do not have to worry about waiting for your accountant or bookkeeper to do the sending on your behalf. Electronic invoices can also be created at anytime anywhere as opposed to conventional invoices which can only be created at a specific place such as an office.
The electronic invoices also allow you to easily track them once you have sent them to the clients. With the help of the electronic invoicing system, you will be able to view the status of payment and determine which invoices have been paid, those that are still awaiting payment and also those that are past their due dates. The electronic invoicing also allows you to run reports to get a better insight on your account receivables and identify the clients that are poor payers. A better audit trail is easy to create with the use electronic invoices as it will keep track of all your transactions hence making the audit process easy.
Through the use of electronic invoices, you will be able to receive your payment on time. The same-day-delivery aspect of the electronic invoices allows the clients to receive the invoices on time as opposed to traditional invoicing system whose delivery is uncertain. The online payment systems allows your clients to pay you instantly hence saving on time. The software used in electronic invoicing uses special encryption like the ones used in financial institutions such as banks, thereby ensuring the security of your system.
By sending the invoices electronically, you will be able to save the time and money you would have spent on an accountant to do it on your behalf. Keeping track of your cash flow will be made easy through the use of electronic invoices as you can opt to send the invoices to your clients on a weekly, monthly or quarterly basis depending on what suits your needs. Therefore, I would recommend the use of electronic invoices to be able to enjoy the many benefits mentioned above.