Significance Of Electronic Invoicing
Electronic invoicing is a method of invoicing used mainly by trading partners to keep track of there documents by exchanging the documents among themselves. Depending on the demand and supply, business partners are able to monitor the progress of there business and transaction and make several adjustments.
One among many uses of electronic invoicing is that it helps in keep the records of any transaction for future reference. There is always a back up that can be sorted and presented to the table in case of any misunderstanding.
Electronic invoicing is able to sort files and documents of interest and present them for analysis. A lot of time and effort to such for a particular file or document of interest is need in paper work as compared to electronic invoicing. As a result, time is saved and work is simplified.
With electronic invoicing, one is able to print, scan, and key in to the accounts payable by only a click of a button. As a result, time is saved and work load is reduced. It further creates a neat and presentable work format that can be saved and stored for future reference.
Electronic invoicing enhances cash management. As a result of processing the invoice electronically, the treasury organization are able to see the processed invoice and allow the transfer of goods. As compared to electronic invoicing, paper invoicing might take a lot of time. Other than the time taken to process a paper invoicing, the paper might even get lost or destroyed in an unknown situations. As a result, electronic invoicing does not only prove to be safe and secure but it also enhances cash management.
In that case, electronic invoicing is the safe and secure method of invoicing to be used. There is the least chance of an alteration that might occur in the invoice hence electronic invoice is safe and secure method of invoicing. Further, it keeps and have the records of all the goods in the store with their unique numbers. The chances of an alteration is minimal unless authorized by the proper personnel in that case.
With the help of invoicing, accounts reconciliation is enhanced. This is because there is always a degree of difference between the amount the customer has paid against the original invoice that was submitted to the customers. This is as a result of the customer not being able to pay in time the debt that he or she owes the supplier. As a result, he or she might pay in excess or at ones even thou he or she was given more than one invoice. The invoice separates the number of customers who have paid their payment in time fro the ones who still owes the company.