On Electronic Invoicing

electronic_invoiceI’m probably not exaggerating  when I say that electronic invoicing is currently all the hype especially amongst small business owners.

Some compare electronic invoicing to email because it can provide the same benefits such as time and cost savings.

And let’s be honest, it would be difficult to imagine most modern business operations without email and other forms of electronic communication.

So what is electronic invoicing?

In case you never heard about electronic invoicing (or e-invoice in short) allow me to give you a short overview about it.

At the core of electronic invoicing is usually that you use some type of electronic invoicing service such as cloudtrade or similar. So let’s say then you are using electronic invoicing and so does the recipient for your invoice since you are both using this type of service.

Rather than mailing the invoice (a process that your certainly familiar with) you will email your invoice in digital format to the provider.  Those in turn will process your electronic invoice and dispatch it to your recipient. The advantage here is not only that this goes very fast as compared to traditional mail, it means also that your invoice is processed the instant it arrives at your recipient.

For businesses what this means is that they don’t need to spend time on creating and emailing invoices any longer, in some cases it might even save them staff and operating a mail room especially for that purpose.

The other major advantage of e invoicing is that you don’t really have to change anything in your own process. The difference is merely that you send the invoice by mail, however you can use the same format. In most of cases this will be an Adobe PDF file. Because there are no changes required nor expensive special equipment, the switch to electronic invoicing is pretty much free.

Because of those above benefits it’s clear why electronic invoicing but some is seen as the new revolution for all types of businesses, similar as to all the benefits we today get from using email.

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