How Much Will You Save Using e-Invoicing? Here Is A Breakdown
From commercial considerations to legal obligations and ease-of-use, there are many reasons why e-invoicing is overtaking traditional invoicing. Moreover, in the European Union, public-sector companies have already been complying with electronic invoicing standards since April 2019.
Electronic invoicing refers to using software to manage multiple functions such as creating, managing, and delivering invoices to customers for payment. Additionally, it helps business owners cope with due dates, process costs automatically, and manage cash flow accordingly. Essentially, it helps you manage your time better, thus increasing productivity.
Read on to find out the top five benefits of e-billing including processing fees to invoice design, accuracy, and advanced finance management.
Switching to electronic billing will help you eliminate multiple time-consuming tasks that occur with traditional billing.
For example, having an accounting department is critical in companies with over 15 clients. Technically, you’ll need a person to create the invoice, a second person to print it, a third to post it, another for collecting the money, and finally, an accountant for reporting and assessing it.
On the other hand, invoicing software can save you significant billable hours which can boost your accounting productivity. How? Look at the below stats.
- According to OpenText, e-accounting software saves up to 65% in processing cycle time. If it took an hour to process the weekly invoices, now, you can do it in 36 minutes with an invoicing software
- Northgate Information Systems was able to reduce the staff from 15 to five with billing software
Paper And Postal Fees
Sending paper bills via the post takes more time and money than a click. According to stats, electronic accounting saves over $15 to $30 per invoice. For example, it was estimated that the U.S Federal Government would save up to $450 Million in a year by switching to electronic accounting.
Here are some ways how e-billing can save you money:
- Costs: Save up to 30%-90% in billing expenses as you don’t need paper, ink, or postage with e-bills. For example, if you spend $100 now, e-invoicing can lower it to $10
- Time is money: Unlike e-invoice, paper invoices require being sent, received, approved, paid, and notified. To give you an idea, 82% of traditional invoices can take up to 30 days to get paid