The Benefit of Electronic Invoices
An invoice or a bill is a document issued to a buyer from a seller. It relates to a transaction of sale, indicating on it the items, quantified and priced for each. This is a legal document that is covered by the law, to prove the legality of the transaction. Payment instructions are stated on an invoice. It transfers the liability during the exchange, to the buyer from the seller and proof of transfer of goods. That is after which the payment of the goods has been done. The invoice is a legal entity, binding between the two business partners.
Many business transactions have moved from paper-based invoices to E-invoicing. E-Invoice is transmitted electronically over the internet. E-commerce has brought about E-invoicing. Companies have gained tremendously as a result of using this process. A number of operational advantage and strategic benefit. Companies have managed to reign in high costs associated with invoicing. The traditional method of invoicing involved in the use of a huge volume of stationary. It was costly in the use of stationary as compared to electronic E-invoicing. The filing process was tedious, time-consuming and required storage facility for archiving. The E-invoicing has eliminated all these cost inefficiency processes.
The buyers have managed to reduce the cost of doing business as they have managed to transact payments to their suppliers faster, saving on time. The managers have had ample time to strategize, through this benefit. As it has improved visibility during the transaction. They are able to account for every transaction by a touch of the computer button. Data retrieval has been hastened and the traditional archiving eliminated. Using E-invoicing has increased accuracy and reduced errors associated with transactions. Learn more on this link: www.openfactura.cl.
The managers have managed to optimize the working capital. The budgetary allocation has been allocated to the most essential part of the business, away from purchasing a huge amount of stationary for invoicing. Productivity has increased over time with the onset of e-invoicing. There have been fewer invoice rejections which have improved the way business is done. Mostly compliant with the requirement of doing business. Suppliers and other customers have all gone to the bank smiling due to the faster processing cycle of their payments. Reconciliation of their accounting has improved and optimized. E-invoicing has reduced the cost of running the management process. Customer care relationship between the suppliers and the business has improved. Read more here: https://www.huffingtonpost.com/entry/adopting-smart-invoicing-habits-as-a-business-owner_us_59dfd370e4b02e99c58354fb.