The vast majority of businesses today use invoices in one way or another. Even those that do not send invoices to customers use them to pay bills to creditors, for example.

In most cases, invoices are created manually, either in physical or digital form, and sent via often insecure means such as email.

But what exactly is e-invoicing? E-invoicing has the potential to change the face of a company's entire supply chain. In this article, we explain what an e-invoice is and the benefits of using it. We then go into how you can get started with e-invoicing.

Read on to learn how you can send electronic personalized invoices.

What is an electronic invoice?

An electronic invoice is an invoice transmitted electronically (or digitally).

Electronic invoices are created by e-invoicing software without the need for a human to enter data. This means they can be read automatically by e-invoicing solutions rather than by a human, so the invoice gets paid faster.

Traditional invoices need to be read by someone using a template or invoice generator, or creating an invoice from scratch and then converting the data into an invoice to be paid. Electronic invoicing means you don't have to spend time converting invoices into bills - which also means there's less risk of errors.

Electronic invoices are created by software without the need for human intervention.

How is electronic invoicing different from digital invoicing?

One way to understand EIS BIR is to compare them to digital invoices. But what is a digital invoice? Unlike an electronic invoice, a digital invoice is any form of invoice that can be displayed and processed digitally.

Digital invoices typically come in two forms:

• PDF or Word files
• Scanned paper invoices

Digitizing invoices is a manual process, and digital invoices are typically designed to be easy for humans to read and understand. They require an additional level of human intervention.

Even if you take extra care to ensure no mistakes are made, errors can happen. By automating your invoice processing, you minimize this risk tremendously.

Advantages of electronic invoices

Ease of use

There is a lot to consider when creating an invoice manually. To be legally enforceable, an invoice must contain a wealth of information.

Invoices must include the following, among other things:

• Contact information for both your business and your customer
• An invoice ID or invoice number
• Payment terms and due dates
• A listing of the products or services provided
• The total amount due

This can be a lot to keep in mind and creates several potential points of failure.

Increased efficiency

Electronic invoices exchange data directly from machine to machine. This means that data passes through fewer hands as it travels from one company to another.

Not only does this reduce the chance of something going wrong, as described above, but it can also mean that electronic invoices get paid faster. When a physical or digital invoice arrives, someone on the customer's end has to convert the invoice data into an invoice, which is then paid.

Payment-enabled e-invoicing

E-invoicing makes it even easier for your customers to pay because you can include a "Pay Now" button that integrates with any payment app. This means that your customer only needs to click the button to pay the bill, making the transaction seamless.

Customers can pay this bill using their debit or credit card. This makes the transaction secure as no account details need to be shared.

Greater security

Finally, electronic invoices are much more secure than paper or PDF invoices. The main reason for this is the method of transmission. Electronic invoices are sent directly from one accounting system to another and are therefore less susceptible to compromise than forms of communication such as email.

In addition, electronic invoicing system does not require manual intervention between the original accounting system and the creation of the invoice. This can significantly reduce the risk of human error or fraud.

If you aspire to a world where electronic invoicing is standard, it's best to start now and encourage others to do the same.

E-invoicing is an exciting new approach to invoicing that offers many tangible benefits to businesses and customers.