Table of Contents

    How Much Will You Save Using e-Invoicing? Here Is A Breakdown

    Double exposure of success businessman using digital tablet with coins with seed in clear bottle

    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

    Best Online Invoicing Software

    • One-click payment setup
    • View of outstanding revenue
    • View of business spending
    • Multi-currency & multi-language
    Visit Site
    • Create estimates
    • Automated online banking
    • Report on profit & loss
    • End-to-end management
    Visit Site
    • Time tracking
    • Invoice status tracking
    • Client activity
    • Expense tracking
    Visit Site

    Design Services 

    While you have to worry about the compatibility of invoice designs with custom electronic invoices, utilizing templates can save you time and money. In addition, you can easily add a  professional invoice logo to your invoices to boost brand recognition.

    Here are the top two invoicing platforms for design perks for small businesses. 

    • FreshBooks: Featuring invoice templates for Word, Excel, PDF, Google Docs, Sheets, you can also find industry-wise templates for photography, graphic design, construction, and more
    • Xero: You can send invoices customizable templates right from your phone

    Fewer Errors

    As traditional billing involves numerous stages of manual assessments and data entry, it can lead to more mistakes that directly affect your finances. 

    According to the Sterling Commerce survey, it takes $53 to fix a paper invoice error. The same survey highlighted that businesses that switched to e-billing reduced errors by 37%. When unchecked, accounting errors can pile up. For example, Medicare lost $31.6 Billion to accounting errors in 2018. 

    If you fail to provide correct amounts, billing information, or terms and conditions on the invoice, it can be annulled. Moreover, increased accuracy helps businesses save money and time as it results in lesser service calls with clients.

    Moreover, from cross checking billing to credit details and matching invoices, accounting software is multifaceted enough to identify fraudulent transactions too. 

    Better Cash Flow Management 

    Traditional invoicing takes days to show up in account payables. Managing paper bills is difficult as it can oftentimes get lost or misplaced. Conversely, when your invoices are in one place, you gain a macro-view of your finances. It helps you see if accounts payables are piling up or if you have outstanding accounts receivables. 

    Additionally, with e-invoicing, AR can be processed quickly by customers, thus improving cash flow. If you’re the payee, invoicing software increases your chance of earning discounts by 500% too. 

    For example, if your customer has an early payment discount of 2% on a bill of $3,000, by using invoicing software, you’ll save $60 automatically if you pay before the due date.


    Besides saving the environment by going paperless, e-invoices will help you manage your cash flow more easily as it allows you to stay on top of your business.  Ultimately, the best invoicing software can help you save 65% of your time and 90% in processing costs, sparing you the headaches associated with billing errors and inaccuracies. Get started with invoicing software today.