How E-Invoicing Benefits Businesses
E-invoicing services can help businesses to produce error free documents that are used as the medium of communication with clients and customers. A company that provides e-invoicing solutions for clients is Basware.
A report by Billentis states that about 500 billion paper invoices were used globally in 2015 (Billentis, INVOICING E-BILLING REPORT 2015, 2015). In order to provide paper in such huge numbers, roughly 12-16 million trees were used. For this reason, if enterprises of all scales switch to e-invoices, it can help in saving a large number of trees and can also reduce pollution. Using e-faktureringsløsninger not only has positive environmental implications, it can benefit businesses by increasing output and saving costs. The following points illustrate how e-invoices can be fruitful to various organizations:
Productivity & Reduced Costs
A study conducted by Aalto University reveals a significant amount of difference between the time taken to create a physical and a digital invoice (Aalto University, TRANSITION TO E-INVOICING AND POST-IMPLEMENTATION BENEFITS, 2010). An e-invoice costs $8 less and takes 5 minutes less to create as compared to a paper invoice. Thus, e-invoices can help companies increase productivity as well as reduce costs.
Reduced Human Error
Most e-invoicing platforms are semi or fully automated. All the details are either selected by a user through a drop-down menu or generated by the system. This can reduce a significant amount of error that could occur when the same action is performed through a manual process. Using e-invoices can help companies omit errors from important business documents. This can be very crucial to a company’s success, especially small and medium scale enterprises.
Improved Data Handling
The data that is generated through e-invoicing can be more thorough and detailed. Moreover, all the data is stored automatically in the system. This can help B2B companies to process and analyze vast amounts of easily accessible data. The data can then be used in generating various kinds of reports of high quality. Having automated archiving options can help companies retrieve old e-invoices faster, as opposed to searching through hardcopy files for a paper invoice.
Maintain Cash Flow
Finding errors in physical invoices can be a tough process and it can take weeks or even months for companies to clear payments that are stuck due to such errors (Hummingbill, THE 4 INSANE BUSINESS BENEFITS OF E-INVOICING: WHY DOES EVERYONE NOT USE IT?, 2016). A month’s delay in payment can keep companies off serious projects without the required revenue. Using automated invoicing solutions, problems like delay in payments can be averted and companies can maintain a healthy cash flow.
Organizations are adopting automated systems for payments with the help of firms that provide løsninger til e-fakturering. A company that provides e-invoicing services for various organizations is Basware.