Why Should We Use E-invoice?

 

Companies all across the world are attempting to counter competitive challenges through cost savings and increased financial performance visibility. By automating repetitive administrative procedures, back-office departments can see considerable cost reductions.

Fewer organizations have optimized accounts payable compared to the number of organizations that have simplified and digitalized operations like procurement. In order to save money, some are centralizing accounting tasks into payment factories, while others are moving invoice processing abroad or outsourcing to a third party.

Here are four of the main justifications for why you need to use e-invoicing in your business if you have not previously.

1.  Overcome paper invoice challenges:

It is surprising that so many organizations have not yet optimized their accounts payable activities given the time, effort, and expense associated with the paper-based invoicing process. Each paper invoice must be processed manually, which takes time and is prone to mistakes. The European Association of Corporate Treasurers estimates that switching to electronic invoices will result in cost savings of over 80%. It is important to consider how time-consuming the paper-based invoicing process is for both the customer and the supplier in order to fully comprehend how these savings might be realized.

2.  Improves process automation:

The biggest savings in e-invoicing come from developing effective procedures and integrating them into your business, not from cutting back on printing or mailing. The "sweet spot" for electronic invoicing is represented by process automation. Other IT systems in your company, such as the buying or treasury systems, can handle electronic invoices, saving time and money and preventing data mistakes that might occur when transmitting invoices over multiple media.

Original Source:  Why Should We Use E-invoice?