5 Reasons E-Invoicing is a Winning Strategy
The advent of electronic invoicing has been around since the early 2000’s. But, it still has yet to completely catch-on. In fact roughly, 70 percent of invoices are still done by paper, fax and paper checks!
We’ll help convince you to ditch the antiquated paper-based invoicing system. Here’s five reasons e-invoicing is a winning strategy for your business.
1. Saves You Time and Money
Regardless if you’re a solopreneur or enterprise-level business, you’re probably most concerned about saving both time and money. Thankfully, e-invoicing is able to achieve both.
It’s been estimated that the average cost to send a paper invoice is $4 a pop. That may sound inflated, but consider the costs. Preparing, printing, and mailing the invoices will show that the figure isn’t so far-fetched.
An electronic invoice, however, costs on average $2.25. For accounts payable, that figure is even greater since a paper invoice costs a staggering $30, compared to $3.50 for an electronic invoice.
Overall, according to Billentis, electronic invoicing can lead to savings of 60-80%.
You’ll also save money by reducing the amount of time it takes. No more creating, organizing, and managing the sheer amount of invoices you send and receive. For example, instead of scanning paid invoices and filing them, electronic invoices can be automatically uploaded onto the cloud.
2. Your Customers Will Love It, I Guarantee This
Electronic invoicing isn’t just beneficial for you. It also has the following advantages for your clients or customers:
- Convenience and Payment flexibility: Your customers now have a variety of payment options, such as credit card, debit, ACH, or even bitcoin so that they can choose when, where, and how to pay.
- Control of finances: Accepting payments electronically allows customers to pay at the last minute and monitor their activity.
- Email reminders: Avoiding late payments and fees is a whole lost easier when a reminder is sent before the due date of a payment. Including a “Pay Now” link will streamline the billing process even more effectively.
You shouldn’t have to be reminded that you need to keep your customers happy by improving their experience with you. Making invoicing as painless as possible to pay you helps a lot. Less stress for the customer is more likely to help build a long-term relationship with them.
3. Avoids Repetitive Tasks
Electronic invoicing can automate most of the invoicing work that you or your accounting department were previously responsible. This allows your accounts staff to focus on tasks like spend management, credit control, and support for procurement decisions.
For you, this means that you can focus on more tasks that can grow your business. Time strategies such as strengthening your products/services, networking, and creating quality content.
4. Provides Clearer Insights Into Your Business
Unlike paper-based invoices, e-invoicing provides greater visibility into your business. You’ll be able to see where your cash is being held-up. You’ll see where your cash is flowing in-and-out. This gives you a chance to stop any hemorrhaging before if becomes detrimental to your business.
5. It’s Better For The Environment
Finally, e-invoicing is a eco-friendly. It’s been estimated an e-invoice solution can remove at least 80% of paper from most accounting departments. As a result it reduces your carbon footprint. This helps the environment feel better and it can attract clients or customers who are also socially responsible.
You will find that e-invoicing is also good for your bottom line. One observation is that e-invoicing drastically reduces the amount of paper cluttering an office leading to a higher level of peace.