Electronic Invoicing Makes Collections Easier
Every month, businesses are faced with the time-consuming task of payment collection, which requires invoice creation, chasing down payments and recording the transactions. These steps typically consume much time and are often inefficient, frustrating, and unnecessarily stressful for companies.
Electronic invoicing, aka email invoicing, relieves the pain of collections by simplifying the invoicing process and making it easier for vendors to pay. This type of invoice and billing solution can send quotes or invoices directly via email. From there, vendors can review the invoice and pay a buyer directly online. This saves B2B companies valuable time and provides customers with a secure way to pay quickly and easily.
4 Ways e-Invoicing Transforms the Collection Process
1. Promotes Faster Payments
Paper-based invoicing consumes a lot of time and resources, from printing and mailing the invoice to waiting for the payment to deposit and clear. E-invoicing can streamline the billing process, reducing high Days Sales Outstanding (DSO), and can help businesses retrieve money faster. Adding features like embedded Pay Now buttons or pay links to e-invoices can encourage customers to pay as soon as they receive the invoice.
2. Takes Stress Out of Payment Collections
One of the most stressful steps in the collections process is reaching out for payment—and, in some cases, following up several times to ask for payment. Email invoicing allows the accounts receivable team to have pre-written templates to use or payment reminders to send out to help avoid late payments and uncomfortable and timely follow-up.
3. Lowers Costs
E-invoices with pay links are better for customers because the pay link removes the hassle of writing, signing, stamping, and mailing a check. For the accounts receivable professional, unnecessary time and resources spent on sending paper invoices, tracking down payments, and reconciling them on the back end are all eliminated. It’s safer, quicker, and less expensive than traditional invoicing.
4. Reduces Human Error
One of the best features of using electronic invoices is that it reduces the number of human errors. Mistakes delay the invoicing process, which can impact DSO. With e-invoices, if something isn’t filled out properly or needs to be changed, it only takes one quick phone call or email, and it’s done. Click and payment received. Payment automation helps alleviate the chance for human error.
Learn More About Our E-Invoicing Solutions:
Contact us online or call 1-877-875-6114 x3.
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