Online invoicing gives a host of benefits. Time saving payments and instant deposits provide a very attractive option while following internet security.
E-voicing essentially dispenses with paper invoicing.
How Does It Work?
Simply e-voicing can work by e-mailing invoices to customers rather than printing and posting. But banks can have a secure form, or use electronic funds transfer with the BACS system,
see here for an explanation.
Those registered for VAT need a slightly different system. VAT regulations state electronic invoices must include all information found on a paper invoice and follow a particular format.
Benefits
- E-invoicing can help solve the problem of late payments when caused by postal and paperwork delays. An invoice can be sent and received on the same day.
- E-invoicing software alerts you to late payments before they become a problem. See here for more details of available software.
- Easier to keep records of invoices sent and gives a more accurate picture a customer credit situation.
- Electronic payments don't run as much risk of going missing in transit, e.g. stolen/damaged mail, so the system is more secure.
- Reduces postage, stationery, and ink cartridge costs.
Where should you go next?
To decide if e-invoicing is right for your business, find out more here:
