As governments around the world imposed lockdowns for the sake of public health, digital initiatives that were once a low priority for business continuity suddenly became critical, especially for the survival of small and medium-sized enterprises. E-invoicing has proven its potential and the possibilities it offers to those who have adopted it, thanks to its important benefits.
Cash flow and inventory
Cash reserve is a necessary safety cushion that your business needs in order to respond to emergencies such as the situation we are experiencing now. Reserves secure businesses against financial cycles, banks and other lenders. In addition, it offers credibility and resources, which are essential elements for the development of the business whenever the time comes.
Although it is not always possible to create a strong cash reserve, if a business offers customers the ability to pay using e-invoicing, payments are proven to be made faster. Especially in the case of small and medium-sized enterprises, the problem of late payments is really crucial, with more than half of the invoices paid to SMBs being delayed.
There are many ways to prepare and send invoices to customers, such as sending a PDF via email or a document by mail. In both scenarios, customers must open the invoice when they receive it and then enter the data into their own system. This manual process requires time from both you and the customer, while it is equally time-consuming to search for the customers that are due to make payments.
With e-invoicing, you can register to the e-invoicing network, so the invoices you will receive will be displayed automatically in order for you to approve them. This eliminates the need for manual data entry, thus reducing the risk of errors both from the business and the customers. In addition, it means that your team spends less time on admin tasks and can focus on more productive, revenue-generating ones.
Global accessibility to e-invoicing means that more and more countries are beginning to accept it as both an optimal and often mandatory option. E-Invoicing offers the possibility of creating a very fast and secure way for processing both domestic and international transactions. For example, countries on different continents are rushing to strengthen the economic ties between them by setting common standards, including e-invoicing.
The conclusion is simple: the financial well-being of your business is more important than ever. Although there are always external factors that one cannot control, there are some things like e-invoicing that you can implement and change things for the better.