While e-invoicing is not new, its importance has increased 10x in the past decade. More and more procurement organizations grew up digitally overnight and while others also showed eagerness to invest time in a free online invoicing software.
While the American and European markets were among the first, the Asia Pacific market is now gaining momentum and has several enterprises working with digital invoicing platforms now. It is projected that the e-invoicing market is set to reach US$ 4,217.6 Mn by 2027.
Hong Kong and Malaysia have also made good progress on this front already. The best thing is that nations like Vietnam, South Korea, Japan, Philippines are also planning to jump on the wagon soon. Before we move on to understand how digital invoicing can help you make a perfect business strategy, let’s know more about it!
What is Digital Invoicing?
Digital invoicing involves the exchange of invoices between a buyer and supplier in a secured digital format. It lets you automate the entire invoicing process, data is first analyzed and then sent to the buyer’s AP system irrespective of the format of the invoice. Both suppliers and buyers can then manage their entire billing on a common cloud-based platform.
How The Best Accounting Software for Small Business Can Help You Boost Profits?
Here are some ways you can use your accounting solution to develop good business strategies and boost profits.
1. Reduced Turnaround Time
With e-invoicing, organizations can make/receive invoices in all formats, manage finances, and easily manage their accounts payable information and processes. Besides, they can access, aggregate, and sync information between various systems and devices while avoiding data duplication.
Thus, e-invoicing is enabling organizations to manage and streamline their invoice processing cycles and reduce the hours required for invoice processing. Implementing it will eventually result in a faster turnaround time.
Besides, it will enable teams to cut down on repetitive tasks and make room for tasks that actually add value to their skillset. All these will lead to overall efficiency, apt utilization of resources, and a 2x increase in productivity.
2. Enhanced Visibility and Transparency
Electronic invoicing lets you achieve transparency with invoices, purchase orders, documentation, and contracts. When you have access to invoices and detailed audit trails, you can better hold your business aspects.
3. Increased Accuracy
You can easily ensure accuracy with free online invoicing software that tracks invoice validation, client approvals, and payments in real-time. This will reduce errors eliminate instances of overpayments and duplicate payments. Thus, it serves as an important factor for closing audit trails and making settlements.
4. Better Compliance
An e-Invoicing system is much more than a platform for making and sending invoices. It also lets you achieve a higher level of compliance and keep up with your taxes. Also, when it comes to regulatory compliance, you need to take into account rules followed by multiple states and countries. These solutions let you take care of all the aspects.
5. Reduced Risk
What happens when you don’t know the issues faced by your system? Well, greater visibility into transactions lets you reduce risks, avoid data duplication, and eliminate human errors. Businesses can save multiple hours spent in cross verification and due diligence if they have a good system in place. This will help you manage risks and cut down on long processes.
6. Get Access to Detailed Financial Insights
The best accounting software for small business lets you track every penny. This, in turn, lets the leadership and procurement teams gain insights into identifying more opportunities, get discounts, make informed decisions, and save both- resources and time.
7. Go Green
By using free online invoicing software, you will no longer need to invest in piles of paper. Not only will it be energy efficient, but you will also reduce wastage and costs and make your supply chain faster.
This was how free online accounting software could help you craft that perfect business strategy and cut down your cycles. With governments around the globe working on implementing e-invoicing frameworks, it is the right time to look for the best accounting software for small business. If you are still looking for a solution that can change the face of your business, let us help you find one!