Common Myths about E-invoicing Debunked

Almost all activities of a company use invoice and require invoice management. These invoices constitute the basis for decisions on operational and strategic levels. Hence, improper invoice management can have a negative impact on the efficiency of the organization, while proper and high quality invoice management is crucial for a company's success. However, several industry experts indicate that invoice management is an area that many companies do not pay sufficient attention to, or don't have enough knowledge for how to deal with it efficiently (Journal of Industrial and Engineering Management, THE COSTS OF POOR INVOICE QUALITY, 2011).

Due to the immense lack of knowledge when it comes to e-invoicing, there are many myths that are considered to be true, owing to which, many businesses refrain from using e-fakturaer. Hence, here are some common myths about e-invoicing that are believed to be true, but actually are not:

Costly

More often than not, companies are reluctant to digitize their invoices as they think that the economic costs may rise. On the other hand, e-invoicing can actually prove to be cheaper than paper-based invoicing as digitally sent invoices do not require much manual labor and the cost for paper and other stationary like ink, cartridge, etc, is eliminated. Moreover, e-invoicing can reduce the number of days accounts receivables remained outstanding, which means suppliers get paid faster and the chances of buyers paying a late fee decreases.

Security

Many a times, businesses believe that e-invoicing is not a safe process as most their data is on the web. However, e-invoicing is actually considered safer than paper billing. The technology that the e-invoicing process uses includes mechanisms such as e-signature or time stamping that ensures the integrity and validity of the document. Moreover, as the entire process is digitally controlled, it reduces the risks of errors, thus the possibility of the e-invoice being returned is low. Also, with e-invoicing, as all the documents are stored on the web, the chances of misplacing an e-invoice or the document being wrongly used are minimal.

Convenient

As e-invoicing is a new concept, businesses believe that using this process might not be convenient and may be time-consuming. However, arguable one of the most time-consuming aspects of invoicing is not the capture or validation of the data, but staffing call centers to support vendor inquires about payments. After submitting an invoice, the collection teams need to call and confirm receipt and approval of the invoice. Followed by the approval, they need to follow up again to confirm the actual payment date. Moreover, once the payment is received, they need to check up again if there are any errors and resolve the issue. This can result in significant cost and time lost responding to vendor call and researching the status of the invoices. By opting to use e-invoicing, suppliers and buyers can make use of a supplier or vendor portal, which offers vendors the ability to check the status of approval and resolve any disputes or errors.

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