Why e-invoicing solutions are great for businesses.

Sep 30 2020 | Contributing writer Gene Marks, small business expert and PayPal ambassador

Learn how e-invoicing solutions helped Gene Marks, a small business owner and CPA, be more efficient in business.
An abstract line drawing showing how technology can help businesses operate more efficiently.
Our most-valuable resources as a small business are time and effort. And one thing that helps me be more efficient is the ability to quickly create, send, and save electronic invoices. It’s a simple tool, but a powerful one. 
What is e-invoicing?
Text that states 40% of merchants have sent an invoice from their phone.Almost all businesses need to invoice someone for something. So, what is an invoice? An invoice is the way we confirm to our customers that we performed a service or shipped a product, and now they owe us money. But in just the past few years, more business owners have started ditching the humble paper invoice in favor of digital invoices.1 

E-invoicing, or electronic invoicing, is a digital invoice that can be sent once or automated for regular customers. Electronic invoicing can be a big time-saver for businesses who rely on it for processing accounts payable - many find that e-invoicing can even help with things like compliance.
E-invoicing vs paper invoicing.
Today's e-invoice is no different than the traditional, paper ones.  It includes all the same information - from the customer's invoicing and shipping/service address to details like services performed (or products sold), pricing, quantities, descriptions, invoice number, purchase order numbers, the supplier or salesperson's identifier, and dates. It's all there.  Except it's not in physical form. It's online or even cloud-based. And we can reap benefits from an easy-to-use digital invoicing solution. 

Four ways an e-invoicing solution has transformed my business.
1. We now do data entry from nearly anywhere.  
Thanks to mobile innovations, business owners like myself have seen our lives, and our companies, transformed.  Now we can communicate, collaborate, automate, administer, and operate our businesses from wherever we are and whenever we want. I've learned from my best clients to leverage my mobile devices - phone, tablet, laptop - to get alerts, updates, reports, notifications, and other information to help me run my business - whether I'm in the office or on the road. But to get that data out of my system it was also important to integrate it into the system.

Back in the day, we would finish work for the week and my people would submit manual time sheets. Someone in my office's finance department would manually enter that information into accounting software on the computer, and then print and mail invoices. This margin for human error left us open to things like compliance issues. Now, when we perform a service, I authorize certain technicians to automatically generate an invoice at the client’s site – whether they’re in their car or walking down the street. It's had a huge impact on our productivity.  
 A line drawing of the transactional flow of electronic invoicing.
2. Our cash flow has significantly improved. 
Time directly affects cash flow. Before we moved to an e-invoicing solution, days or weeks passed between the time we performed the service and invoiced the account payable on our
Text that states 78% of PayPal Invoices are paid within one day of sending the invoice.invoice tracker. Now, as mentioned above, we're doing our processing and data entry from our mobile devices, so we’re generating e-invoices as quickly as the service is performed. More importantly, we deliver the invoice electronically so that clients have it quickly, instead of waiting days for the post office to deliver it. 

Speaking of saving costs, our e-invoices include PayPal as a payment option, so our clients can pay us with just a few clicks. 
Think about that: with a little change like adopting e-invoicing, we cut our payment processing by weeks - and significantly impacted our cash flow.

Text listing the benefits of e-invoicing that lead to improved productivity.
3. Besides cash flow, e-invoicing makes us more productive. 
That's because we're all getting our invoicing and payment data while we're on the go. We're entering this invoice data into the web-based system without delays. We're analyzing information end-to-end in almost real time. And because so much is automated, we've reduced the time spent on-boarding new employees. This has enabled me to make quicker decisions and identify potential problems (an overdue invoice, a less-than-expected billing from a supplier) before they occur. 

Line drawing of a hand holding a sprouting plant.4. It’s also a greener alternative. 
Being an environmentally conscious company is important. Printing less paper invoices and storing our files electronically enables me to tell the world that we're doing our little part to try and make that difference.


As far as e-invoicing options, we decided to use PayPal Invoicing.
There are many great e-invoicing software applications to choose from. We use PayPal Invoicing for a few reasons. 
For starters, it's cost-effective. PayPal invoice templates are free and the transaction fee we pay on payment is no different than what we've paid in the past when accepting credit cards.  We use the PayPal Invoicing management center as our accounts receivable ledger, so we can track invoices and payments on the go. I also like the flexibility of PayPal invoice templates and the options to attach files - like a quote or service agreement - when we need to. 
Great e-invoicing solutions do this.  They allow companies to accept partial payments and deposits, send out reminders, retrieve a complete history, accept country-specific payments in different currencies, and even share the invoice as a PDF.  PayPal Invoicing also gives me the ability to integrate with other applications in an ERP system and output to Microsoft Excel.

My advice: If you run a business, turn your manual processes – like invoicing – digital. Believe me, your competitors are doing this. You need to as well.
Try the PayPal Invoice Generator for free. You don't need an account to download or print.
The contents of this site are provided for informational purposes only. You should always obtain independent, professional accounting, financial, and legal advice before making any business decision.

Source: comScore, based on a survey of 1,226 US and Canadian small- and medium–sized business owners (businesses with <250 employee­­s and annual revenue of $25K to $5M), December 2017. 320 of surveyed businesses are currently using PayPal. 

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Frequently asked questions.

Creating and sending the invoice is free, but when an invoice is paid online there is a fee per transaction. PayPal fees vary by country.
The Business app makes creating, editing, and updating invoices easy. To create a new invoice tap Create New Invoice either on the Home screen, or on the Invoicing screen. You can also tap + on the Invoicing screen.
When you create an invoice you can enter all the necessary transaction information such as to whom the invoice is going, the date, when it’s due, what it’s for and the pricing information. You can also customize any terms and conditions you may have, add a note to the customer, leave a memo for yourself, or add pictures. Finally, you can also save the invoice as a draft, edit or delete it, and of course send it to your customer.
Need to send the same invoice to multiple customers? Tap the invoice you created and then tap More. Tap Copy to duplicate the invoice and then edit the customer information on it as well as any other information. You can save the copy as a new invoice (it will automatically be titled the same but with a number on it) or send it.
As part of the invoice creation process, you can add to the app different items you sell or services you provide as well as multiple tax rates. Just tap Invoicing and then tap the cog.

See also:
Create Invoice Template
Construction Invoice Template

Sales Invoice Template
Contractor Invoice Template
Freelancer Invoice Template
Catering Invoice Template
Here's how to view the status of the PayPal invoices you send.
  1. Log into your PayPal account.
  2. Click Pay & Get Paid at the top of the page.
  3. Under “Invoicing”, click Create & Manage Invoices.
Here you can see the status of all your invoices. It may take several minutes for your invoices to appear.
You can view your invoices by going to the Invoicing section in your PayPal account. On this page, you have many options on how to find the specific invoice(s) you are looking for, how to sort them, and more.

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