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Education

Why you and your link. Once the payment is processed, both the sender and
recipient receive a confirmation of the transaction.
merchants should E-invoicing is a paperless process that is much more

efficient and eco-friendly than traditional invoicing
use e-invoicing methods. This simple, intuitive system is quickly becoming
the new standard for businesses all over the world.
What are the benefits of e-invoicing?

E-invoicing comes with a number of benefits that can save
you and your merchant customers time and money. Some
of the top benefits include:

• Reduced accounts receivable costs: E-invoicing
can help reduce your accounts receivable costs by
streamlining the invoicing and payment process.
This eliminates the need for a large accounts receiv-
able team to manage invoices, perform data entry
tasks and process payments.
A study by Deloitte Access Economics, https://bit.
ly/3zHfu2V, estimates that businesses can reduce up
By Nicholas P. Cucci to 70 percent of their processing costs by implement-
Fluid Pay ing e-invoicing in place of manual or PDF invoices.
In their findings, they've also discovered that every
ince the early days of business, invoices have electronic invoice a company generates can deliver
been sent by mail. This slow and inefficient pro- up to a $20 cost savings over a traditional paper in-
cess relies heavily on the post office, resulting voice.
S in high material costs and even lost invoices. • Improved cash flow: With e-invoicing, your busi-
In today's fast-paced business world, these issues can be ness can send invoices faster and receive payments
costly and cause significant payment delays. This is why sooner. The immediate delivery reduces the amount
invoicing has gone digital, and e-invoicing is becoming of time that invoices spend in the accounts receiv-
the new standard. able process and can free up working capital that
What is e-invoicing? can be used elsewhere in the business. In the same
Deloitte study mentioned above, researchers found
Electronic invoicing, or e-invoicing, is a digital version that electronic invoice recipients paid their invoices
of a paper invoice that is sent and received electronically. an average of seven days faster than those who re-
It allows businesses to send invoices, accept payments ceived paper invoices.
and manage their accounts receivable online. Since the
invention of e-invoicing, businesses have been able to • Reduced clerical errors: E-invoicing can help re-
streamline their invoicing process, saving time and money duce clerical errors common in manual data entry
in the process. tasks, such as transcribing paper invoices into your
accounting software, or miscalculations and typos
E-invoicing offers many benefits, including reducing in the invoicing process.
accounts receivable costs, material costs, clerical errors and E-invoicing systems automate data entry tasks and
more. Through this guide, I will explore the top benefits of can help ensure that the correct information is cap-
e-invoicing, how it works and how you and your merchant tured the first time. This not only saves time but can
clients can start using it today. also help prevent late payments and reduce or even

How does e-invoicing work? eliminate the need for manual interventions by staff
members.
E-invoices are generated by the sender and sent
electronically, typically through an electronic invoicing • Reduced material costs: E-invoicing can help reduce
system or provider. The resulting invoice is intuitive with material costs, as you or your merchants will no lon-
line-by-line details, a custom company header and your ger need to print and mail paper invoices. This can
company's branded messaging. save a significant amount of money on paper, print-
ing, envelopes and postage. In addition, e-invoices
The recipient receives the invoice by email or SMS and can don't require physical storage space, so they're cost-
proceed to make a secure payment using an embedded effective to file and much easier to retrieve.

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