Why e-invoicing solutions are great for businesses.
What is e-invoicing?
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.
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 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.
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.
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.
1 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.
Frequently asked questions.
You'll get an email confirming that we've sent your invoices, and when you've been paid.
PayPal invoices are easy to create. Just enter your customer’s email address. Then add an item with its quantity and amount. Add as many items as you like. You can include personalized notes, terms and conditions, discounts, or any attachments your customer might need.
When you’re finished, click Preview to see how your invoice will look for your customer.
How do I send invoices?
You can send PayPal invoices to any email address in the world. When your invoice is ready, just click or tap the Send button and PayPal’s platform will send an email notification with a secure link to the invoice directly to your customer. If they have a PayPal account, your customer will also receive notifications about the invoice when they log into their account.
How do I share invoice links?
You can also share links to invoices directly with your customers. On the desktop experience, click Share link to invoice under the Send action. You’ll get a link that lets your customer view and pay the invoice. You can copy the link and your invoice becomes payable. Then share it by email, text, or messaging app. Because invoices contain your customers’ personal information, don’t share the invoice link on a public site.
To share the link again, copy it from your list of invoices by clicking the three-dot icon for the invoice. Or get the link by opening up the invoice details.
How do I send invoices to multiple customers?
Send the same invoice to up to 100 customers by clicking Multiple customers and entering each email address in the Bill to field. We’ll send a separate, payable invoice to each customer.
How do I import a batch of invoices?
Create and send a batch of multiple invoices by importing a CSV file. Use our spreadsheet template to fill out the invoice details for each customer. For each invoice, include a customer email address, item name, and item amount. After you import the spreadsheet file, you can view a summary of the imported invoices before sending them. Once you send the file, we’ll email each customer a secure link to pay their invoice. For customer security, PayPal limits the number of invoices you can send in a single day.
Learn more about batch invoices.
Can I manage PayPal Invoicing from my mobile?
You can create, send, and manage invoices on both desktop computers and mobile phones. You can also send and manage invoices on the go with the PayPal Business mobile app. Get the mobile app from the Apple Store or Google Play. Learn more.
What are quick invoices?
Quick invoices let you send easy, professional payment requests on your mobile phone. They streamline invoice creation so you can quickly share a link to an invoice with your customer. Your customer will still get a professional invoice including your default business information.
On a mobile phone web browser:
1. Log into PayPal and go to your invoices.
2. Tap on the button icon in the lower right.
3. Choose Send a quick invoice, enter an amount, and payment description.
4. Tap Create and Share Link.
5. When your invoice link is ready, tap Share Link, and then share it by email, text, or messaging app.
On the PayPal Business mobile app:
1. Tap on the lightning bolt-shaped Quick Actions icon in the lower right.
2. Choose Send a Quick Invoice and follow prompts.
3. Tap Create and Share Link, then share it by email, text, or messaging app.
4. Tap Done.
How do invoices for shippable items work?
If you’re shipping an item or need your customer to give a shipping address, check the Ship Order box when you’re creating your invoice. You can then add any shipping costs. When your customer pays, you’ll be able to add tracking information when you ship their order.
How do I schedule recurring invoices?
You can set invoices to repeat weekly, monthly, yearly, or at a custom interval. When you start a recurring series of invoices, the customer will immediately receive the first invoice. (You also can schedule the recurring series to start at a future date.) The following invoices in the series will issue around 7:00 AM in your time zone according to frequency that you set.
Can I cancel a recurring invoice series?
You can cancel a single invoice within a recurring series or the entire series of invoices. To cancel an invoice, tap the three-dot icon for the invoice within your list of invoices. You can also cancel the invoice from its details page. When you cancel an invoice within a recurring series, we’ll ask if you want to cancel the single invoice or the entire series.
How do I send invoices across national borders?
There’s no extra step to send invoices across national borders. You can send PayPal invoices to any email address in the world.
If your customer has a PayPal account, we’ll display the invoice and email notification in their preferred language. If your customer doesn’t have a PayPal account, we’ll send the invoice and notification email in the language of your account. You can also specify a different language by editing your customer’s contact info when you create the invoice.
Fees vary by country or region. See seller fees.
Can I cancel an invoice?When you cancel a sent or shared invoice, your customer won’t be able to pay it.
To cancel an invoice on the desktop experience, find the invoice in your list of invoices and click the three-dot icon on the right side of the screen. You have the option of sending your customer a notification email about the invoice cancelation. On mobile, find the invoice from your list. Tap the More icon on invoice details and cancel it.
Can I record payments made outside PayPal?If your customer pays by cash, check, or another offline method, you can record the payment from the invoice details page. You can also record an offline partial payment if your customer made a deposit or paid an installment. Recorded payments appear in the activity of the invoice’s details page along with any notes you’ve entered about the payments.
Can I add notes/memos for my records?To add a note to your invoice for your own records, click or tap the More Options link while you’re creating an invoice. Add a memo that your customer won’t see. If you’ve already sent the invoice, you can add a memo on the invoice’s details page.
Can I give my customers a receipt?When your customer pays a PayPal invoice, they automatically receive a payment receipt. If your customer wants another copy of the invoice, you can share a link to the paid invoice or create a PDF to send or print.
How do I download invoices for my business records?To download single or multiple PDFs for your invoices, hover over one or more invoices in your list and check each box. Then choose Download from the actions displayed.
How do I integrate PayPal Invoicing into my website?With a single integration, you can connect PayPal Invoicing directly into your order management system or website. You’ll need API credentials to connect your PayPal account to your platform so you can integrate PayPal Invoicing with your site.
Integrate PayPal Invoicing.
Learn more about fees.
How can customers pay my invoices?
PayPal customers can easily pay your invoices. They don’t need a PayPal account to pay. They can also pay you with a credit or debit card.
Can customers make partial payments?To accept partial payment from your customer, check the Allow partial payment box under payment options when you’re creating an invoice. This lets your customers make multiple payments toward the total amount of a single invoice.
If you require a minimum amount due, your customer will need to pay at least that amount in their partial payment. Your invoice will have a Partially Paid status until it’s fully paid. A record of payments will appear on the invoice details.
Partial payments aren’t a credit product or a way to allow for an excessive number of payments. We may contact businesses if we suspect they’re not using this feature correctly.
What if customers can’t find my invoices?If your customer can’t find their email notification for an invoice, their email filter might have sent it to the junk folder. If your customer has a PayPal account, they can pay the invoice by logging into their account where they’ll see the invoice in their Activity. If needed, you can share a link to the unpaid invoice with your customer.
Can I send reminder emails for unpaid invoices?To send a reminder about an unpaid invoice, find it in your list of invoices. On a desktop computer, click the three-dot icon and click Remind. On a mobile phone, you can send reminders from an unpaid invoice’s details page. You can personalize the reminder before sending it. Your customer will receive an email reminding them to pay the invoice. To save time, set up automatic reminders for all new invoices in your Invoicing settings. You can also schedule automatic reminders warning customers when an invoice is overdue.
Set up automatic reminders.