eInvoicing, short for electronic invoicing, is the process of sending a digital invoice to a supplier, contractor, government, or customer for payment. eInvoices provide all the same information that a standard printed invoice would normally contain, without the need to print or post.
Depending on how your eInvoices are generated, you may also be able to skip out on the email delivery, as many eInvoicing software can manage this on a business owner’s behalf.
To make payment easy for the eInvoice receiver, make sure you’ve covered all the main criteria necessary. eInvoices require three categories of details:
Your business information
Order details and payment options
Date of the invoice
Unique invoice number or purchase order number
Description of goods and/or services being charged with associated costs
GST, if applicable (if you’re unsure, find out when to charge GST)
Name of the person or business set to pay the invoice
Method(s) of payment
Terms and conditions
What are the benefits of eInvoicing?
More productivity through automation
Using eInvoicing software creates opportunities for automation, including the automated creation and receipt of recurring invoices. It can also reduce the amount of time customers will spend following up and chasing invoices.
Faster payment
eInvoices can be created easily on a computer and sent instantly to a supplier or customer. Traditional invoicing usually needed to be printed and mailed to the customer, taking several business days. Whereas eInvoicing will be delivered to the customer immediately. Not only does this reduce the time it takes for the customer to receive the invoice, but they are also able to process payment much quicker.
Improved customer satisfaction
Customers appreciate the timely receipt of eInvoices just as much as the sender. Buyers can track their costs and budgets more accurately, process payment, and reconcile the books.
Better supplier relationships
Efficient and accurate billing with clear payment options makes every transaction even more seamless.
Environmentally friendly & lower cost
No longer leaning on paper, eInvoicing allows everything to be done digitally, dramatically reducing a company’s carbon footprint. By leaning on email or automated sending for the invoices online, business owners also reduce their postage costs.
How safe is eInvoicing?
Generally speaking, eInvoicing is relatively safe, especially when it comes to the sender. On the buyer’s end, however, it’s becoming increasingly important for businesses and people alike to do their due diligence before processing payment of any type.
This year, cybercrime costs are predicted to reach $9.5 trillion USD, with the largest type of cybercrime being phishing attacks. Plenty of these attempts include falsified invoices, looking identical to recurring eInvoices, with the only change being the account number. These redirect schemes cost businesses millions every year, so it’s important to be careful.
Many business owners and accounting teams look to implement strategies such as call back controls or segregation of duties. Although, as companies turn to automation options, implementing an accounts payable technology such as Eftsure makes sure you pay the right people, every time.
Summary
eInvoicing, short for electronic invoicing, is the process of sending a digital invoice to a supplier, contractor, government, or customer for payment.
Using eInvoicing software creates opportunities for automation, including the automated creation and receipt of recurring invoices.
It can also reduce the amount of time customers will spend following up and chasing invoices.
eInvoicing increases productivity, reduces the carbon footprint, improves supplier relationships, and encourages quicker payment processing.
Always take caution when paying eInvoices through call back controls, segregation of duties, or by implementing an automated invoice checker, such as Eftsure.
