In the past, most businesses used to manually create invoices at the end of each billing period then mail them to their clients. When using the traditional invoicing system, there is a high risk of the clients not getting the mail on time and also the period within which you will receive payment will be prolonged, as it takes time for the invoice to be processed by the client. Creation and sending of invoices has been made easy through the introduction of electronic invoicing systems. By using electronic invoices, you will be able to enjoy a multitude of benefits as will be discussed here.
Through the use of electronic invoices, you will be able to send out your invoices immediately. Through the use of an electronic invoicing system, you will be able to send the invoice directly to the client without the assistance of an accountant or a bookkeeper. Electronic invoices can also be created at anytime anywhere as opposed to conventional invoices which can only be created at a specific place such as an office.
As opposed to the traditional invoices, electronic invoices are easy to track once sent to the clients. By getting such information, you will be able to know the amount of money owed to you and make a follow up if the need arises. 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. A better audit trail is easy to create with the use electronic invoices as it will keep track of all your transactions hence making the audit process easy.
Through the use of electronic invoices, you will be able to receive your payment on time. The same-day-delivery aspect of the electronic invoices allows the clients to receive the invoices on time as opposed to traditional invoicing system whose delivery is uncertain. The online payment systems allows your clients to pay you instantly hence saving on time. 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.
Since having an accountant or bookkeeper to do all the invoicing for you costs money, electronic invoicing will enable you to save time and money you would have spent on the staff. Keeping track of your cash flow will be made easy through the use of electronic invoices as you can opt to send the invoices to your clients on a weekly, monthly or quarterly basis depending on what suits your needs. Therefore, I would recommend the use of electronic invoices to be able to enjoy the many benefits mentioned above.