Time and effort are two of the most valuable resources for businesses—so creating a process to quickly create, send, and save electronic invoices is essential. Though it may sound like a simple tool, the benefits are powerful.
E-invoicing, or electronic invoicing, is a digital invoice that can be sent once or automated for regular customers. The associated benefits are extensive: Not only can electronic invoicing be a major time-saver for businesses that rely on it for processing accounts payable, but it can also reduce material and paper costs, lower potential invoicing errors, and lead to faster payment. What’s more, many find that e-invoicing can help with compliance regulations.
Read on to learn more about the advantages of switching from paper invoices to e-invoicing, from reducing overall costs and errors to enabling faster, more accurate processing.
To avoid a cash flow crunch, almost all businesses need to create and track invoices. But what is an invoice? Think of it as the way we confirm to our customers that you performed a service or shipped a product, and now they owe you money. Instead of sending paper invoices, which can be tedious and tough to manage, many businesses have digitized their invoicing process through e-invoicing.
Unlike traditional invoices, e-invoices are made up of data that can be automatically processed without manual action. In other words, e-invoices are seamlessly transmitted into a company’s financial system without the need for accounting staff to sort each one.
Therefore, the popular invoice formats listed below aren’t necessarily considered e-invoices:
Here’s a quick overview of the most common invoicing types for small businesses and how they compare. Overall, e-invoicing offers the most advantages compared to paper or PDF invoices, from real-time delivery and processing to better tracking and increased efficiency.
Whenever you handle credit or debit payments, you must maintain compliance with the PCI DSS (Payment Card Industry Data Security Standard), a set of comprehensive data security regulations to protect consumers and guard against fraud and unauthorized transactions. Not complying with e-invoicing regulations can lead to fines and audits.
For instance, PayPal Invoicing is designed to simplify e-invoicing compliance through:
Today's e-invoice is no different than the traditional paper ones. It includes all the same information, from the customer's address to details like services performed (or products sold), pricing, descriptions, and more. The difference is it's not in physical form, which can help make the invoicing process faster, simpler, and even more secure.
Creating an e-invoice is relatively simple. Here’s a quick guide:
Ready to get started with e-invoicing? Create and send invoices using PayPal invoices for small businesses.
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