Invoices are an essential part of every business. It is one of the most important ways for businesses to increase their cash flow. But it's not only for business. It is critical for anybody legitimately sell goods or services. Freelancers, independent contractors, sole proprietors, and the self-employed are all included.
However, there are other aspects of invoicing that may be unclear. Today, we'll look at the most significant invoice data facts.
Invoice and Purchase Order
There are several significant distinctions between invoices and purchase orders. Although they are sometimes mistaken, they are not the same. The first and most significant point is that an invoice is generated following the purchase order. A purchase order is used to place an order with a supplier for products or services.
An invoice, on the other hand, is a document that informs the customer that payment is now required for goods and services that have already been supplied.
Online Invoicing System is Superior
Many businesses still use paper invoices across the world. In reality, paper invoices are used by the US federal government for over 60% of its invoicing procedures. That's a lot of paper with 19 million invoices every year. Others like using templates that they have downloaded. Although they have their advantages, they are inefficient. Paper or invoice templates demand you to hunt for client information every time an invoice has to be delivered.
An online invoicing system allows you to keep all of your data in the cloud. Even better, it is accessible from everywhere, allowing you to submit invoices from anywhere.
E-invoicing Is Becoming More Popular
The use of e-invoicing is steadily rising around the world. As previously stated, with 60% of the US government's invoices being traditional, this means that 40% is already e-invoicing. In fact, the 2012 Global E-Invoicing Study discovered that 73% of survey respondents had utilized some sort of e-invoicing, a 14% increase over 2011. There's a good reason for this: the US Treasury estimates that using e-invoicing alone may save the government 50% on costs. This equates to a $450 million annual savings that may be used for more important purposes.
The Earlier You Invoice, The Faster You Will Get Paid
Invoicing is important for receiving payment. Clients will be unable to pay you unless you have a payment order. Because most clients are large enough for accounts payable operations, you must utilize that system. These processes may be so rigorous, that it is recommended that you submit your invoice as soon as possible in order for it to be processed.
This is another check for an online e-invoicing system since it allows you to produce and submit invoices in under a minute.
Professional And Polite Email Reminders Get Paid Faster.
Chasing late payers is an essential component of getting your invoices paid quickly. However, most individuals may not comprehend that being courteous in your email is preferable to being harsh. It has been shown that using polite language can increase the speed with which your invoices are paid by 5%. That may not be a large number, but it is significant.
It is also necessary for another reason: you want to have a professional and ongoing connection with the customer. Being nice is essential for a long-lasting relationship.
The world of invoicing is always changing. There will be further changes in the accounting, invoicing, and billing businesses as technology progresses. Sign up for Blinksale today to try out our online invoicing tool for free and learn more about its sophisticated capabilities and payment method alternatives.