Creating invoices is probably one of the most boring activities to undergo as a business. However, it is a core part of a business that you cannot ignore. With today’s digitalization, many businesses have gone online. Many offline businesses are still adopting one or more digitalization forms, including online invoicing and e-invoicing. For brick and mortar stores still using paper invoicing, here are 8 reasons online invoicing beats paper.
Sending invoices, or bills, is one of the most enjoyable aspects of owning or operating a business. Although these may be tedious or time consuming to send, doing so ensures that you will be paid promptly. There are numerous ways to invoice your clients or customers, but which is better: paper or online invoicing? Here are five reasons why online billing is superior to paper invoicing.
What is Online Invoicing?
‘Invoicing’ is simply a progressive expression of the noun, ‘invoice’. An invoice is a working financial document that spells out the goods and services offered to a client and the terms binding as is the case with credit purchase.
Online invoicing is the digital or electronic generation and utilization of an invoice as opposed to dealing with much paperwork like the case with paper invoicing. In business, you would undoubtedly affirm the frustrations encountered with sending invoices or bills albeit being one of the most boring aspects of running a business.
The rise of online invoicing
Online invoicing is not a brand-new concept. Electronic data interchange (EDI) and XML formats have been used for electronic invoices for 30 years. Recently, the government has been the primary force driving the adoption of online invoicing.
A number of laws have been developed in Europe, the world’s most active region in terms of online invoicing, to encourage its use across the European Union. In reality, as of April 2020, EU nations must implement the e-invoicing Directive into their national laws and adhere to its corresponding criteria.
Even though several methods for invoicing clients or customers exist; there is a grand debate between online invoicing vs. paper invoicing. Here is the 8 reasons online invoicing beats paper:
Online Invoicing Saves Money
Good businesses seek to maximize profits and minimize expenses while delivering great value; so why should your billing system be any different? Online invoicing saves you money from postage to money spent on ink, printing, and even envelopes. It might surprise you how much you spend on stationery each year, not to mention printer maintenance. Printing generally is expensive and you would be cutting yourself some slacks if you adopted online invoicing and handled your business electronically.
You would undoubtedly agree that paperwork is time-consuming. However, online invoicing helps prepare your invoice in the shortest possible time. As a bonus, when running an online payment for your business, you stand the chance of getting paid immediately!
Better Documentation and Correspondence
In business, effective communication and proper documentation are a no-brainer. An online invoice not only affords you incredible speed and efficiency but also gives you an extensive archive of all your business documents such that they are easily accessible without the risk of losing your files. Since most businesses now operate online and even run online billing systems, it would be of great advantage to utilize online pay stubs and online invoicing instead of paper invoicing. This will afford you the ability to easily integrate into the network of online businesses and enjoy the benefit of collaboration and networking. Online invoicing and business documentation has been made easy at Paystubsnow. You can create invoices, pay stubs, 1099 and so much more with just a click of the button.
One major advantage of technology over manual processes is proper error management and even eliminating them. Since paper invoicing has to be done manually, the risk of errors becomes inevitable as the slightest situation like mental exhaustion and fatigued employees can constitute error with the figures and other handwritten work.
Financial management is another aspect of online invoicing, where all financial information is safe and can easily be accessible to you. Cloud-based accounting protects your financial data from theft and fraudulent activities so that you can effectively monitor your cash flow.
Invoices that do not contain the correct data can be recognized automatically and returned to the supplier for correction. Suppliers are understandably concerned about the payment status of their invoices, not knowing whether it contained all of the necessary information and is waiting to be processed, or whether something was missing and they’ll have to re-submit, potentially adding weeks to the time it takes to receive payment. With error management, suppliers may see right away if their invoice was denied due to a lack of appropriate data, allowing them to quickly revise and resubmit.
Paper invoicing is bulky and can be discomforting since you have to carry it with you. An e-invoicing system saves you the effort as you can always access your invoice electronically online. They are also accessible on mobile devices like smartphones, making it possible to run your business from the comfort of your home.
In today’s competitive business, branding is key for any business to thrive. From e-commerce enterprises to retailers and even freelancers; getting and keeping customers is the modern business’ dream; making the need to stand out is imperative. Paper invoicing doesn’t do much to ensure a business effectively builds its brand and stands out in the crowded market system of today. Online invoicing enables you to effortlessly build your brand from colors to logos, customized fonts, etc., enabling your enterprise to develop its voice. Branding gives your business the identity that it needs to increase the chances of more cash flow. You can stretch it by creating newsletters to keep clients abreast with the latest advancements in your business and how you can be of more service, all adding up to branding.
Prompt Payment and Delivery
Whether you want to combat the problem of delay with sending bills or having to deal with different currencies and languages in the global market, online invoicing effectively takes care of your business. Thanks to 21st-century technology, cloud computing, and data management, you can do business with clients all over the world and bill them regardless of what currency is involved. Online, customers can choose their preferred language and currency. This makes sending invoices within seconds possible regardless of customer currency. Remember, the quicker you can send your invoice online, the faster you get paid.
Online Invoicing is Eco Friendly
As cliché as this sounds, we cannot deny the need for taking better care of our environment. By joining the increasing number of businesses switched to online invoicing, we aid the conservation of our ecosystem no matter how insignificant it seems. Extensively, it contributes to cutting down on environmental pollution from felling trees, improper paper, and waste disposal, etc.
It is vital to leave a communication trail with anything you do in business. If something goes wrong, you may present what you have on record to back up your efforts. When mailing paper invoices, you rely on the carrier to deliver your mail on time. We are really lucky to reside in a country where our mail service is reasonably reliable, with only the occasional hitch. However, if you send a paper invoice, you won’t know if it was received until you receive a check in the mail.
It’s your fault if you follow up because they haven’t paid and they claim they never received the invoice. When sending online invoices, you can include a read receipt in the email or utilize a tool that notifies you when the recipient opens the message. You’ll know they got it and at least looked at it this way. If they “lost” it in their email, it’s not difficult to reattach and resend the invoice.
Benefits of Online Invoicing
By doing away with paper invoices and manual processing, you can save a lot of money and time. The level of connection you can establish between your invoicing software and other business systems, as well as with your trading partners, is where the main advantages of online invoicing lie. Particularly for accounts payable, incorporating e-invoices into the AP automation solution further promotes touchless invoice processing, freeing up time and resources for more strategically important and value-adding duties.
A good initial step in your company’s digital transformation path can be starting to send and receive e-invoices. It can also be a crucial step in ensuring that your business processes are effective and scalable to accommodate future growth.
Why should paystubsnow cover your online invoicing?
Paystubsnow is one of the frontier businesses for standard financial documentation such as paystubs, client invoices, utility bills, etc. with its user-friendly interface; you are just one click away from creating your financial documents at a very reasonable cost.
FAQ: Why is Online invoicing attractive?
The advancement in e-commerce, causing a lot of businesses to operate and transact online is the hallmark of professionalism, making paper invoicing obsolete.
What is online invoicing?
Online invoicing is electronically generating an invoice using software and service providers like paystubsnow rather than paper invoices for financial documentation.
What is a paper invoice?
A paper invoice is an invoice written and generated on paper. It is a manual system of invoicing.