The traditional credit process is becoming outdated in the 21st century, as tools that free credit professionals from tedious, paper-intensive processes become increasingly widespread. Automated and digitized processes and workflows are replacing paper-based ones at exponential rates, imposing a new standard of efficiency that is becoming necessary to adopt at the risk of being outpaced.
In the accounts receivable sector, new digital tools such as e-invoicing software and automated collections workflows comprise the bulk of this emerging trend. They help businesses get paid faster, more securely and with improved efficiency—while also making collections officers more productive than ever.
So, what is E-invoicing Software?
Electronic invoicing, known as e-invoicing, is—just as the name suggests—a form of billing between a supplier and buyer that is delivered digitally. Essentially, e-invoicing software takes the paper-based process you likely already have in place and digitizes it. It can function as a real-time notification of payment, typically including the contact information of both buyer and seller, date of service and amount owed. Its greatest benefit is that your customers can receive and make payments on invoices far faster than with a traditional system, especially with self-service payment portals that give your customers a transparent, accessible and simpler way to make payments digitally.
What is the difference between an e-invoice and a digital invoice?
Do you remember the saying, “A square is always a rectangle, but a rectangle is not always a square?” In this scenario, the e-invoice is the square, and the digital invoice is the rectangle.
Simply put, a digital invoice, usually a PDF, acts as an alternative to paper invoices, but with very limited capabilities. E-invoices, on the other hand, are more advanced and offer far more features and benefits than a digital invoice. Specifically, their ability to integrate with CRM software and streamline manual processes for efficiency gains.
Why is adapting e-invoicing beneficial?
The obvious benefit of e-invoicing, and the reason it has been adopted so readily by AR departments, is the boost in both productivity and efficiency that it brings. Its ability to help eliminate human errors, such as calculation mistakes, typos and invoice duplication, makes it not only a strong alternative to paper processing, but an invaluable, ever-present contributor to your team.
The greatest value e-invoicing software offers is its ability to integrate with automation software to expedite the payment process. Many companies are still relying on outdated, manual methods for their payment processing, where it’s easy for payments to be overlooked, misapplied or duplicated. Payment automation software avoids this problem, not only speeding up your cash flow and saving your company time and money, but also making it easier to track and record transactions.
This increased efficiency and added layer of transparency helps provide a better payment experience for your customers while also protecting your own assets. The additional oversight and reporting also helps you mitigate risk by detecting trends and enabling more predictive analysis.
But invoicing is only one aspect of the accounts receivables process and, much the same, implementing e-invoicing software is only one step on the path to truly elevating your AR workflows. While e-invoicing software digitizes invoices and securely stores them electronically, making them more accessible for your team, a fully automated suite of AR tools would handle not only invoicing but also billing, claims, dispute resolution and payments.
Additionally, a robust AR automation platform provides customers with secure portals to pay their outstanding balances, review upcoming payments, check account history and more, all in one comprehensive location.
Find Your Solution
For more information, or to compare and find the best e-invoicing solution for your team, contact a Bectran specialist for a live chat.
