Advantages that come with Using Electronic Invoices
In the past, most businesses used to manually create invoices at the end of each billing period then mail them to their clients. The inefficiency of the system is exhibited by the time it takes to create the invoice and also the lack of guarantee that the mail actually gets to the clients. Creation and sending of invoices has been made easy through the introduction of electronic invoicing systems. Many benefits are associated with the use of electronic invoices as will be mentioned here.
With the help of the invoicing software, you will be able to send out your invoices automatically on the scheduled dates and time. Considering that electronic invoices can be sent directly to the client, you do not have to worry about waiting for your accountant or bookkeeper to do the sending on your behalf. Considering that electronic invoices are generated online, you can enjoy the benefit of creating and sending them even from the comforts of your home.
The electronic invoices also allow you to easily track them once you have sent them to the clients. With the help of the electronic invoicing system, you will be able to view the status of payment and determine which invoices have been paid, those that are still awaiting payment and also those that are past their due dates. After getting an insight on your accounts receivables and identifying the clients that are poor payers, you can adjust your terms of payment to suit each of your clients. In case you need to carry out an audit on your accounts, you will not have to worry about the process as the electronic invoicing system will help you keep track of all your accounting transactions.
The other important benefit of an electronic invoice is that you will enjoy quick payment. Since the electronic invoicing system automatically updates you when the client opens or receives the invoice, you will not have to worry about it not reaching to the intended client. Through online payment, you will be able to save on time as the clients can pay you instantly as it is a fast and easy way of making a payment. The software used in electronic invoicing uses special encryption like the ones used in financial institutions such as banks, thereby ensuring the security of your system.
By sending the invoices electronically, you will be able to save the time and money you would have spent on an accountant to do it on your behalf. With the use of electronic invoices, you will not have to worry about dealing with complex accounts reconciliations, as you will be able to keep track of your business’s cash flow, by sending the invoices to your clients on a weekly, monthly or quarterly basis. By using electronic invoices, you will be able to enjoy the benefits associated with them as discussed above.