With no sign of the digital boom dying down anytime soon, it's no wonder that some businesses are struggling to meet demand. With increasing customer expectations and difficulties during this terrible COVID-19 pandemic all over the world, the desire to do business online is on the rise. Nowadays, most people prefer to buy things online, with homeowners seeking dog walkers, plumbers, painters online, etc.
Having a smart solution, such as a website to advertise your services and issuing Estimates and Invoices using cloud-based Invoicing tools like Blinksale Invoicing. It has never been more crucial to manage your business smarter rather than harder. As many businesses strive to simplify their procedures in order to keep up with demand, one aspect that may have been overlooked is digital invoicing.
Payments were one of the procedures that suffered severely. Companies were urged to use automated payment procedures and innovative digital payment solutions as activities shifted to virtual formats. Digital invoicing, for example, or new Cloud-based invoicing, is seen to be successful at expediting the process and completely complements the digitization and cost-cutting tactics undertaken by businesses following the outbreak of COVID-19.
Digital invoicing is a much more modern method of reconciling payments against invoices that minimizes the time and expenses associated with preparing, sending, and receiving invoices. This procedure also eliminates the need for paperwork because it allows you to send and receive invoices electronically, right into your and your supplier's accounting software. It is only one component of an integrated business strategy.
Key Benefits of Digital Invoicing
- Error reduction and efficiency improvement
- Faster payment as a result of faster processing
- Material cost savings
- Better cash management
- Archiving is being streamlined
Less error and significantly more efficient
Mistakes may be costly, and if they occur frequently, they can harm your relationship with the customers. Being able to send timely (and accurate) bills to suppliers and clients not only keeps them pleased but also ensures faster payments for your business by speeding up the entire billing process. Digital invoicing also enhances accuracy and efficiency by eliminating the possibility of redundant data entry due to human error. Input mistakes are kept to a minimum thanks to the continual automation of the invoicing process and the removal of manual interventions.
Faster payments as a result of faster processing
Invoice payment periods typically begin with the receipt of the invoice. Because an electronically transmitted invoice is instantly available to the receiver, payments are made early and on time.
Material cost savings
Paper invoice management is an expensive and time-consuming process. According to The Hackett Group's benchmark, the average cost of manually processing a paper invoice is around $6.39. Implementing an automated invoicing system may reduce this cost by approximately 70% while cutting processing expenses to roughly $2 per invoice.
Better cash management
When using e-invoicing, there is no need to print, scan, and manually process invoices. Companies that utilized the electronic solution saw a considerable decrease in the order-to-cash lifecycle, which also aided in the reduction of delinquent payments. This has the ability to improve the dynamics of customer service even more.
Archiving is being streamlined
Companies are required by law to keep invoices for future audits by tax authorities. The duration varies from country to country. Paper invoices are typically unsuitable for long-term storage. Fire or water damage to the archive might lead to the loss of stored invoices. In such circumstances, the consequences for the firm can be quite costly—the tax authorities normally begin to estimate—usually not in the company's favor. When it comes to electronic invoice transmission, the invoice data is already in electronic form and can thus be readily integrated into an electronic archiving system. Invoices may be generated using suitable backups and data mirroring (both of which are typical in modern archiving systems).
You may remove the need for paper-based invoices by switching to e-Invoicing. In addition to saving energy, you may decrease the waste and expenses associated with paper-based procedures utilized in your supply chain.
Digital invoicing has become one of the most significant initiatives that businesses are taking to digitize their processing processes. With governments all around the world, requirements are being introduced and frameworks are being put in place to facilitate digital invoicing. If you haven't done so before, check Blinksale Invoicing, now is the time to invest in Digital Invoicing and take your business to the next level.