Reasons You Should Try out Electronic Invoices
Before the introduction of technology in the business world, business owners used to create invoices at the end of each billing period, print them, place them in an envelope then mail them to their clients. The inefficiency of the system is exhibited by the time it takes to create the invoice and also the lack of guarantee that the mail actually gets to the clients. However, with the introduction of electronic invoices, you will be able to solve such issues as it has made it easy to create and send invoices. Most business owners are embracing the use of electronic invoices due to the many benefits that come with them.
Through the use of electronic invoices, you will be able to send out your invoices immediately. Considering that electronic invoices can be sent directly to the client, you do not have to worry about waiting for your accountant or bookkeeper to do the sending on your behalf. Considering that electronic invoices are generated online, you can enjoy the benefit of creating and sending them even from the comforts of your home.
Through the use of electronic invoices, you will be able to easily track them after sending to the clients as opposed to the traditional invoices, whereby you may have to wait until the due date of the payment. The electronic invoicing will help you view the payment status by identifying which invoices have been paid, as well as those that due or past due dates. By using electronic invoicing, you will be able to run reports on your accounts receivables thereby getting an insight on which clients are poor payers. The electronic invoices also enable you to create a proper audit trail by keeping track of all your transactions which may be useful in case you need to carry out an audit.
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. With the introduction of online payment system, you will not have to wait for cheques to arrive in the mail as in the case with traditional invoicing system. 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.
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