What are the cost benefits of e-invoicing?

What are the cost benefits of e-invoicing?

Business owners could write down a list of all of the benefits they've seen since embracing electronic workflow in the office, and they would have to use numerous sheets of paper. Going from a cluttered, paper-full system to one that incorporates the digital sphere can be tough, time-consuming and completely revolutionary within any company, but the advantages are endless.

Almost any department in any business can benefit from scanning their files into the computer and pushing them well into the future using paperless document management software. For instance, it might behoove managers to put the files of former clients that must be retained online. That way, they're still accessible if need be, but they're not collecting dust and unnecessarily taking up room in the office or requiring the company to pay for storage indefinitely. 

Putting invoices of any kind on a digital platform can also greatly benefit the business. All parties involved - employees within the firm, as well as the client contact - can reference the information within the financial agreement at anytime. And perhaps more important, moving this process to the computer guarantees invoice automation. That is to say that instead of sending out invoices via snail mail, which can take days or even weeks to reach clients, waiting for them to get around to reviewing, copying and signing the document and then sending the paper back, it can be done immediately. This scenario could be even longer if there was an error or point of argument within the original invoice agreement. Electronic workflow can cut out weeks of negotiations.

One of the biggest motivations business owners can use to place their invoicing process on a digital platform is that in the end, it will save everyone involved a lot of money. What costs, specifically, can administrators hope to recoup because they embraced this technology?

E-invoicing has saved the aviation industry millions
Many individuals considering turning to electronic invoicing have likely done their homework and researched the experiences and results seen by companies that have successfully done so before them. Recently, there have been many reports of airlines replacing things like flight plans and pilots' manuals with tablets after employees scan the proper files onto digital platforms.

However, E-Invoicing Platform recently reported that simply by putting all of the interline billing and settlement documents of trade group the International Air Transport Association (IATA) online, the aviation industry has been able to stop unnecessarily using 160 tons of paper every year, which equates to $700 million in annual savings

On a more relatable scale, consider all of the money even a small operation could retain by not having to spend money on reams of paper, ink, folders to contain such documents, staples and paper clips to hold bundles together and so on. 

The news source also explained that the sector saves money because e-invoicing helps airlines avoid duplicating forms and documents unnecessarily, which also preserves time for employees.

Protects finances in cases of fraud
Something that might not be immediately obvious to the average business owner is the fact that e-invoicing can help protect the office from a number of types of fraud. While some skeptics might note that placing financial files online may open up the company to more chances to be hacked, if the documents are protected correctly, the opposite is true.

For instance, this eliminates the possibility of a physical breach in the office place - even if robbers break in, they wouldn't make off with the invoicing documents that could expose sensitive information. Accounting Today also pointed out that if invoicing was digital, individuals trying to take advantage of a business wouldn't be able to steal check stock from the office.