With more and more companies relying less on location and more on working remotely, E-invoicing adoption is booming. By adopting an E-invoicing policy, you can make your business run more efficiently and be more reliable and flexible for your customers.

If you are wondering why adopting E-invoicing is crucial in 2021, the answer is simple. Online invoicing can streamline your processes and cut down costs by up to 80%. With digital invoicing solutions, you don’t have to waste money on printing machines, ink, or paper anymore. Continue reading to find out how E-invoicing can benefit your business in 2021 and beyond.

What does E-invoicing mean for businesses?

Electronic invoices, or E-invoices, are not a new concept, as they have been around for approximately three decades. They are invoices issued, received, processed, and stored electronically and without the need of a hard copy. In order for an invoice to be an electronic one, it needs to be digital throughout the entire lifecycle of the document, from issuance to archiving.

It’s essential to keep in mind that not all digital invoices are e-invoices. For example, PDF invoices, which are typically sent by email, are not classified as E-invoices because they can’t be processed automatically. The same goes for paper invoices that are converted to a digital format.

The digitalization of invoices is gaining traction every year, and the biggest driver of E-invoicing is the government in many countries, especially those in the European Union. By 2020, 24 of the countries had implemented a business to government E-invoicing solution. They offer E-invoices to suppliers and often require E-invoicing solutions from them at the same time.

There are many benefits for businesses that adopt E-invoicing, with the main advantage being in the cost savings potential that the switch can bring to companies. The use of E-invoices shortens the time from issuance to payment, which increases the liquidity of the supplier while also improving the customer’s chances to meet the requirements for a trade discount that was previously agreed upon.

Below you will find the most important reasons to adopt E-invoices for businesses of all sizes.

Top reasons to adopt E-invoicing for your business

1. Cut down on administrative costs

Administrative costs and processing time for electronic documents are far lower than for traditional paper documents. Many companies have found that the rise of digital frontiers and globalization led to an increased need to make customer relationships more efficient and leverage technology to smoothen compliance.

Printing hard copies of invoices cost a lot of money and is actually one of the biggest monthly administrative expenses for many small businesses. To print invoices, you need to buy expensive printing machines and consumables such as paper and ink.

By using an affordable online platform for E-invoicing, you can stop wasting money and reduce costs. If you use hard copies of invoices, you also need to think about storage, which can cost quite a lot if you need to keep lots of invoices on-site. Instead of spending all that money on administrative costs and invoicing consumables, you can use them to expand your business instead.

2. Reduce admin time

Besides the costs associated with hardcopy invoices, you also need to think about the time you or your employees spend on processing those-invoices. This is often a manual process that takes time for both you and your customers.

By adopting E-invoicing, you and your team can spend less time on admin tasks and focus on revenue-generating activities instead to bring more value to the business and your customers.

3. Facilitate cross-border business

More and more countries around the world have started accepting E-invoicing as a best practice standard, which makes global accessibility another benefit of adopting E-invoices. This practice has the potential to create a secure and fast way to do business with customers around the world.

For example, all public sector entities in EU countries adopted E-invoices processes and accept them from all their suppliers as of April 2019. In the United States, large and small corporations have also started to adopt E-invoicing, and there are approximately 250 e-invoice service providers currently operated on the American market.

Cross border business with electronic invoices

4. Reduce mistakes

Businesses that minimize manual input and adopt processes that increase automation can easily reduce the number of mistakes and titles. You also don’t have to worry about things like your invoice getting lost in the mail.

Many online platforms for E-invoicing automatically feel in certain fields on the invoice, so you don’t have to do it every time. For example, you can load all your customer information into the system, and then the platform will automatically pull personal information on each invoice, thus eliminating the chance of errors.

5. Keep track of invoices with ease

When you use E-invoicing solutions, you know when an invoice has been sent, reviewed, and paid. Depending on the service provider you use, you may also be able to see when the customer has viewed your invoice.

Because e-invoices can reach your customer quickly, you will get paid faster. It’s also worth keeping in mind that producing an electronic invoice demands less effort and time, so customers are likely to pay them quickly for that reason.

Digital invoicing platforms also offer businesses access to data analytics, so you can easily monitor your account and see what invoices still need to be paid at a glance. Most platforms allow you to sort invoices by status, which is an easy way to see which of your clients have outstanding accounts.

6. Use templates to customize your invoices

Whether you want to add your logo to your invoices for clients to immediately recognize your branding or want a quick way to make invoice templates, so you don’t have to do the same work over and over again, E-invoicing platforms typically offer highly customizable invoice templates so you can change everything from the branding to the colors and headers.

Invoice templates with different layouts are an excellent solution if you want to streamline your documents in order to make them easier to read and understand. It’s also easy to create multiple types of templates for different products and services or different categories of clients.

Invoice templates for faster e-invoicing

7. Keep track of your finances for tax time

By adopting E-invoicing, you can easily keep track of all the money coming into the business, which comes in handy at tax time. Besides, you can also see whether you are making a profit or running at a loss, so you can use the data to make future financial decisions.

8. Feel more secure with controlled visibility and data encryption

Adopting E-invoicing allows you to implement an encrypted and instant exchange between targeted parties. This means that you will be able to reduce many of the process risks that are associated with human error and manual input.

Moreover, secure data encryption means that you can expect enhanced processing control and transparency. You will know at all times who has access to your business-critical transactional data.

9. Improve business relationships

Many small businesses decide to adopt E-invoicing after getting the request from a supplier or customer to send or receive electronic paperwork. With more and more organizations, including governmental ones, seeking ways to establish digital connections with their business partners, you don’t want to miss out.

By adopting E-invoicing and connecting digitally with your customers and suppliers, you gain more visibility and control over the process, which results in reliable long-term business relationships.

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How to start with e-invoicing?

Many small business owners who are new to E-invoicing and with digitalized processes as a whole are asking themselves where to begin when it comes to adopting modern practices. If you are interested in adopting e-invoices for your business in the near future, here are some important tips and milestones to begin when it comes to adoption practices.

  1. Determine whether your organization needs an E-invoicing policy and what course of action is required to implement it.
  2. Next, determine the number of suppliers or customers your company has as well as the number of invoices that you are processing on a monthly or yearly basis. You should also make sure that your current ERP system is able to handle e-invoices.
  3. Figure out how much does it actually cost your business to process hardcopy invoices. The cost varies from one company to another and depending on the industry but is usually expected to range between $5 and a few dozen dollars per invoice. When determining the price, you also factor in the cost of hours spent by you or your staff manually entering data into the system, chasing missing invoices, and seeking payment approvals.
  4. After carrying out your initial review, you should closely examine the costs and benefits of adopting E-invoices could bring to your organization.
  5. Based on the needs of your business and capacities, you will be able to choose a solution that can change the way you handle-invoices. Most of the time, you’ll be able to implement one of the various solutions on the market without hassle while saving money in the process.
  6. Don’t forget to take into account the technical capabilities of the word trading partners in order to be able to connect with them seamlessly.

How can you create E-invoices with invoice software?

There are multiple ways to generate invoices for your customers but using invoice software is the easiest one. There are different invoice methods that you can employ, depending on the size of your business as well as the industry you’re in.

For example, you can start with a blank invoice or you can use one of the multiple free sample invoice templates that many platforms offer.

If you prefer PDF invoices, you can easily access a PDF invoice template that allows you to send professional invoices to your customers. They use this kind of template, and all you have to do is download it and just fill in the relevant fields. When you’re done, you can download your invoice in PDF format and send it to your customer by email or print it if you also want to have a hard copy.

It’s also easy to create Word invoice templates. Even though these-invoices have their limits, especially when it comes to the number of designs and the fact that you have to fill everything in by hand, they are a good choice for companies that are not yet ready to fully automate their invoicing processes.

Final thoughts

In today’s global digital economy, it’s essential for businesses to access real-time information accurately while satisfying customer needs at the same time. E-invoice adoption can be the answer to streamlining your admin processes while also having real-time visibility into company data and enhancing customer experience.

If you are a small business owner looking to adopt E-invoicing quickly and affordably, Billdu may be the right solution for you. Our platform has lots of features for small business owners on a budget. By using the tools and resources on Billdu, you can easily transition to invoicing in 2021 and save time and money on your admin tasks.

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Gone are the days where you had to make hundreds of hardcopy invoices, pack them in envelopes and send them out to your customers one at a time. We live in a digital age now so you don’t have to spend precious time doing manual invoicing.

If you have a small business you may want to invest in online invoicing so you can streamline your processes and cut down costs by a whopping 80%. Don’t waste money on paper, ink and expensive printing machines. All you need is digital invoicing solutions. Continue reading to find out why.

7 Reasons for Small Business to Adopt Online Invoicing Solutions

1. Cost Reductions is a Must for Small Companies

It costs a lot of money to print hard copies of invoices. You have to buy paper, ink and expensive printing machines to complete the task. For a small business owner being budget conscious is crucial. So why waste precious dollars when you can reduce costs using an affordable online platform?

Storage costs will also be reduced because you won’t have to keep hard copies of invoices on-site. You can spend your money expanding your business rather than spending it on invoicing consumables and administrative costs.

2. Quick Processes to Optimize Workflow

Small businesses have limited staff so doing manual invoicing can slow down your workflow. Fortunately, with online invoicing, you can make short work of creating invoices because there are ready-made templates that you can fill out.

You can download and edit invoice templates for MS Word, PDF or Excel or go with the online editing and utilize an invoice template for Google Docs. The sample invoice template will help you get inspiration as it has prefilled data. Advanced invoice makers like Billdu will cover the online invoicing automation workflows.

Another advantage of digital invoicing is you can keep track of payments and receipts easily. With these processes, you can ensure your clients are paying their bills on time.

There’s no need to spend hours sifting through draws trying to find invoices. With a click of a button, you can use the online platform to retrieve your online receipts without hassle. What’s more, you can send a single digital invoice to multiple people in a matter of minutes.

3. Month-End Made Easy with Scheduling

It can take hours to manually process and send invoices to all your customers. First, you have to print them, put them in envelopes, stamp them and post them. With digital processes, all you have to do is create a simple receipt and schedule it to be sent at the end of the month to the correct client or customer.

You can do this with multiple invoices so that all your customers receive their invoices on the first of every month. By scheduling your invoices you can optimize the workflow in your accounts department and reduce the workload.

Automatic scheduling with online invoicing platforms

4. Access Invoices on the Go

Online invoicing solutions typically use cloud computing to store all the invoices you’ve created. So if you’re on a business trip or visiting another client you can access invoices through your mobile device. As long as you have an internet connection you’re able to retrieve invoices easily using your SmartPhone or laptop.

Furthermore, if you’re not in the office and you need to create a quick invoice, simply log in to your platform and use a simple receipt template to complete the task. You can do this while riding on a train or waiting for the bus. Online invoicing allows you to create and access documents on the go.

5. Eliminate Errors to Keep Your Clients Happy

When processing invoices manually there is a higher risk of making an error. You can easily type in numbers and pricing incorrectly. But is this the same with digital processes? Well, it depends on what type of platform you’re using.

Some online platforms automatically fill in certain places on your invoice so that you don’t have to. If you load all your client and customer information onto the system it can automatically load personal information onto the document to eliminate the error.

The same can be done with pricing. Every client is different and some are charged at various rates. Therefore, you need a system that will identify the rates of your customers so that the figures are always correct on your invoices.

6. Customize Your Invoices with Templates

Are you strict with branding? Perhaps you want to add your logo to your receipts so that clients know where the invoices are coming from. Invoice templates are customizable so you’re able to change the color of headers or add your branding to the document.

If you prefer a different layout you can easily remove boxes and lines to streamline your document and make it easy to read and understand. You can also create your own template so that it’s easier to work with whenever you want to send a document out.

7. Keep Track of Your Finances Easily

Every company needs financial reports for tax season and to keep track of money coming into the business. This is so you can see where you’re making a profit and where you’re running at a loss so you can make better financial decisions for your business.

Some digital invoicing platforms offer data analytics so you can monitor your account and view which invoices still need to be paid. Ideally, you want a platform that allows you to see the monetary status of all invoices so you can see which clients have outstanding accounts.

Your accounts department can then make better decisions on how to handle a client’s account and it makes debt collection easier.

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Try Billdu today to start creating professional invoices and tracking your expenses via our user-friendly online dashboard and mobile apps. You can register for a 14-day free trial below.

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Choosing an Online Invoicing Platform

Not all online invoicing platforms are the same. Some companies have limited offers while others are feature-rich. Take a look at this next section on how to pick the best invoicing platform for your needs.

Payment Reminders for the Forgetful

Sometimes the accounts department can get busy especially when your small business starts growing. Look for a platform that offers payment reminders so you can inform your clients when payments are due or if they’re late. The benefits of this include:

  • Customized messages
  • Faster collection of funds
  • Improved cash-flow
  • Scheduling messages
  • Automated payment reminders

Digital Signatures

The platform you choose should offer convenience for your customers. If the invoice isn’t a hardcopy how will your customer sign the document? You don’t want them to go through the hassle of printing the document, signing it and then scanning it.

Make sure you get a platform that allows your customers to do digital signatures on the invoice either on your SmartPhone or on a tablet. A finger or a stylus can be used to make a digital signature. This will save you and your client time.

Another advantage of digital signatures is that you can keep your client’s information safe. Since the document is on a digital platform no unauthorized person can access it and steal your client’s signature.

Have a Team Working on One Platform

The right staff will need to have access to the platform. With online software, you can create teams of people and grant them access to specific parts of the platform.

Any person who has a password can access the platform at any time to process invoices. This makes working remotely easier if you’re a small business that doesn’t work in an office. If you manage a team of outsourced freelancers then you’ll need a digital platform everyone can access when they need to.

Teamwork with online invoicing solutions

Exporting and Importing Information

Do you want to import information onto an online invoicing platform? Or perhaps you need to export information onto a program you’re familiar with such as Excel. Make sure the software you choose offers these features so you can transfer information from one platform to another without hassle.

There are plenty of benefits when using an import and export feature for data such as the following:

  • Error elimination: You don’t have to retype information on different platforms. As a result, it eliminates the possibilities of typos and other errors.
  • Quick data sharing: If you want to share information with managers or colleagues that don’t have access to the online invoicing system, simply export the information onto a document.
  • Faster solutions: You don’t have to re-do the work when using the import and export feature. You’ll save time and optimize the workflow in your office.
  • Loading information on one document: You can combine all the information you need into one document so that you can have easier access to certain data.

Create a Comprehensive Contact List

Having a contact list is important if you want to stay in touch with your clients and send them the correct invoicing information. With an online invoicing platform, you can easily retrieve client details when you need to call them or send them their invoices.

Make sure the information is organized in alphabetical order so you can find your clients easily when you need to.

Final Thoughts

Are you a small business owner or entrepreneur that’s looking for a quick and affordable way to process invoices? Billdu may be the solution you’re looking for. We offer a feature-rich platform for small business owners on a budget. With the tools on Billdu, you can save time and money on all your invoicing tasks.

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