Significance Of Electronic Invoicing
By exchanging the documents between themselves trading partners are able to keep track of their documents with the help of electronic invoicing. Several adjustments are able to be made depending on the demand and supply by business partners after they have monitored and evaluated the the progress of their business and transaction.
One among many uses of electronic invoicing is that it helps in keep the records of any transaction for future reference. By that, in the event of any misunderstanding or clarification, there is always a back up that can be sorted and presented at the table.
Electronic invoicing is able to sort files and documents of interest and present them for analysis. As compared to paper work which needs a lot of time and effort to such for a particular file or document of interest. This simplifies the work and save on time.
With electronic invoicing, one is able to print, scan, and key in to the accounts payable by only a click of a button. In that case, time is saved and work load is reduced. Further, it creates a neat and presentable work format that can be saved and stored for future reference.
Cash management is enhanced with the help of electronic invoicing. 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. In that case, electronic invoicing does not only prove to be safe and secure but it also enhances cash management.
Electronic invoicing is also 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.
The other importance of electronic invoicing is that account 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 due to the fact that the customer is not being able to pay in time the debt that he or she owes the supplier. By that, he or she might pay in excess or at ones even thou he or she was given more than one invoice. The invoice will, in that case be able to note the number of customers who have paid their payment in time and the ones who still owes the company.