The 2023 Payment Practices Barometer survey for the U.S. found that 55% of all B2B invoices are paid late, creating cash flow and debt problems. If your organization is one of many dealing with invoice delays and payment processing issues, it may be time to consider e-invoicing software.
E-invoicing speeds up and streamlines the entire payment cycle by helping businesses to process invoices faster and more efficiently. Learn more about e-invoicing and how it can transform your cash flow in this blog.
What Is E-invoicing?
E-invoicing, or electronic invoicing, refers to the digitalization of the invoicing process and the digitization of invoice documents. E-invoicing software introduces automation into your invoicing process and allows you to exchange invoices electronically among suppliers and financial institutions.
E-invoicing software generates an electronic invoice based on the country specific and business specific rules configured without the need for human intervention. The system will send the invoice back to the vendor without requiring a user to look at the invoice which contrasts to traditional invoicing — or even OCR automation type solutions — that require the human touchpoint to correct validation errors.
Key Benefits of E-invoicing Software
There are five major benefits organizations see when they move to an e-invoicing system.
Cost Savings
E-invoicing cuts costs in a few ways:
- A reduction in paper usage saves on printing, ink, and postage costs.
- Removing human touchpoints from certain invoicing steps lowers your administrative and processing costs.
- You save money associated with wasted time and mistakes that often come with manual data entry or paper-based invoicing processes.
Improved Efficiency
Organizations that leverage e-invoicing process invoices faster and conduct more streamlined payment cycles. With automated workflows, you’ll see reduced manual errors and delays which translate into efficiency gains across accounting.
Enhanced Security
Paper and manually emailed PDFs increase risk of document loss and damage. E-invoicing securely transmits invoices — ensuring only approved parties gain access to their confidential information. The right e-invoicing solution provides secure data transmission and storage so your organization can stay compliant with industry regulations and standards.
Better Cash Flow Management
When you have streamlined payment cycles, you have a better view into your cash position at all times. E-invoicing provides real-time invoice tracking and reporting on invoice status so you can monitor the invoice lifecycle. Since there’s no need to wait for paper to be sent and received, you’re also likely to get paid faster — supporting more predictable cash flow.
Improved Environmental Footprint
Sustainability is increasingly important to both businesses and consumers, and cutting paper-based processes reduces your carbon footprint. E-invoicing contributes to your green initiatives in a demonstrable, quantifiable way.
Advanced Features of E-invoicing Software
E-invoicing software leverages a few sophisticated features:
- Integration with accounting and enterprise resource planning (ERP) systems ensures you aren’t simply adding another tool to your technology stack. Instead, e-invoicing software integrates with existing tools to make invoice data accessible throughout your financial systems.
- Customizable rules allow you to tailor your e-invoicing software to fit your business needs. For example, field customization enables you to include fields relevant to your organization and industry such as payment terms and customer account information. Customizing automation rules ensures you apply automation to the right operational procedures and workflows to drive up efficiencies.
- The right e-invoicing solution offers multi-currency and multi-language support for organizations expanding around the world.
Choosing the Right E-invoicing Software
When shopping for e-invoicing software, be sure to prioritize the above features in any solution you choose. Additionally, evaluate solutions for their ability to deliver the following:
Scalability
Will the e-invoicing software accommodate fluctuating levels of demand? You’ll want a solution that grows as your business does and also helps you weather unforeseen market changes.
User-friendliness
Will it take significant time and effort from your team to learn the software? Choose a solution that has a short learning curve and delivers a quick ROI.
Integration capabilities
As you evaluate the solution for its integration capabilities, be sure to ask the provider if it’s compatible with your specific existing tools.
Explore E-invoicing to Get Paid Faster
E-invoicing has the power to modernize your invoice processes and support more streamlined accounting. All Star helps organizations of all sizes leverage this advanced software to cut invoice costs, improve accounts payable operations, and more. Get in touch with us to discover how e-invoicing can transform your cash flow.
