Besides increasing productivity and enabling seamless procurement, eInvoicing provides additional benefits for buyers:
- Reduced risk of fraud – invoices are less likely to fall into the wrong hands since they’re transmitted electronically and directly to the correct place.
- Improved supplier relationships – suppliers can receive faster payments since their invoices are received and processed more quickly.
- Enablement for future growth – AP teams can handle more invoices over time since invoice processing is more efficient and there’s a lower exception rate.
- Less back-and-forth with suppliers – because of the increased accuracy that comes with eInvoices, AP teams can spend less time clarifying things with suppliers.
How Do Suppliers Benefit from eInvoicing?
With eInvoicing, suppliers save time submitting invoices since they can usually submit one file for all their customers (buyers) simultaneously. Here are some other ways suppliers benefit from eInvoicing solutions:
- Faster payments and more reliable cash flow – faster invoice approval can lead to faster payments, which help suppliers improve cash flow.
- Improved visibility – suppliers receive confirmation of invoice delivery and, in many cases (like with Nexus), can track invoice status online.
- Reduced costs – suppliers can cut expenditures associated with printing, storing, processing, and delivering paper invoices.
- Improved customer relationships – suppliers can build goodwill among buyers by issuing eInvoices, since they’re preferred by many buyers.
Setting up eInvoice
Much of the setup for eInvoice happens on the supplier side and, in many cases, they’re happy to do it. After all, when they can submit customer invoices quickly and easily, it can increase order frequency.
Suppliers can typically set up eInovicing by using instructions provided by the buyer’s AP automation provider. eInvoice files can then be submitted in a variety of different formats such as XML, cXML, and JSON. With some eInvoicing services, suppliers can transmit custom fields and line-item details on invoices, as well as control how tax is applied.
As with everyone, AP teams were forced to re-imagine how they performed everyday tasks during the pandemic. And they had to figure out how to do more with less.
EInvoicing offered them a way to do so. First, they didn’t need to be in the office to open and ingest invoices. They could receive them electronically, and start the approval process immediately. This was especially important for real estate AP departments. Their hundreds or thousands of invoices continued to stream in, needing processing, just as they did prior to March 2020.
Second, AP employees receiving eInvoices didn’t need to go back and forth with suppliers on incorrect or incomplete invoices. Since they were often down team members, this was a welcome relief.
Lastly, eInvoicing added additional security at a time when fraudsters were capitalizing on the chaotic global situation. Companies using eInvoice solutions didn’t have to worry about bad actors gaining access to invoices and then creating duplicates or claiming non-payment.
eInvoicing Lets AP Teams Expedite Invoice Processing, Among Many Other Things
Given these facts about eInvoice solutions, it’s no surprise they had a moment during the pandemic. And, as the future of work continues to evolve, the need to work more efficiently, accurately, and securely isn’t going away. So, it’s probably safe to say eInvoicing isn’t either.