As eInvoicing turns into extra widespread and companies who depend on invoices for fee turn out to be weary of antiquated invoicing strategies, it’s time to have a look at an instance of how making the swap to eInvoicing radically improves fee assortment.
Earlier than we leap into an instance of what occurs if you make the swap to eInvoicing, let’s shortly define what eInvoicing is and the way it works.
What precisely is eInvoicing?
eInvoicing has outmoded outdated handbook or paper-based invoicing. eInvoicing is a brand new methodology of sending invoices from software program to software program. With eInvoicing, you ship your bill instantly out of your accounting software program, with no emailing, printing, scanning, or PDFs. All it’s good to do is enter the bill particulars, such because the fee quantity and the consumer’s identify into your cloud accounting or invoicing software program then ship it off’.
Your outgoing bill shall be obtained in your consumer’s software program, and all they should do is pay in a number of clicks. Finished! It’s that straightforward.
The simplicity of eInvoicing signifies that your invoices are tended to extra shortly, getting you paid quicker and boosting money move.
Meet Dylan, an expert cleaner from the Reel World. It was Dylan’s loyal consumer Sandy, proprietor of ‘Fringe Profit’ who informed him about the advantages of eInvoicing and nudged him to strive Reckon accounting software program with eInvoicing inbuilt.
Let’s take a look at the instance of Dylan the cleaner to see how eInvoicing works in the actual world
Dylan owns his personal cleansing enterprise for industrial premises. His main methodology of fee assortment is to challenge invoices to his enterprise shoppers.
A key problem for Dylan is the all-too-common prevalence of late bill funds and a big accounts receivable ledger. These late funds restrict Dylan’s accessible money move which creates issues if he has payments due, cleansing provides to buy or family bills to pay for.
Dylan additionally finds his previous invoicing strategies to be cumbersome, time-consuming, and admin heavy.
Dylan determined to comb away his previous invoicing strategies and take up Sandy’s recommendation! He bit the bullet and made the swap to eInvoicing in mid-August 2022 (throughout the Australian authorities’s eInvoicing week!)
Situation 1 – Dylan’s previous invoicing methodology
Up till now, Dylan would do cleansing jobs all through the day after which come residence to his PC.
From there, he would open up an invoicing template to manually create invoices for his day’s work. After saving them as PDFs, Dylan would then electronic mail them one after the other to his shoppers and wait patiently for fee.
Earlier than Dylan switched to eInvoicing, he would additionally should manually enter this bill data into his accounting software program (to sit down on his accounts receivable ledger) as unpaid revenue.
For Dylan’s shoppers, the method can be equally time-consuming. They must make time to learn the e-mail and obtain the PDF bill and infrequently print it as effectively. They’d then manually pay this, by way of their most well-liked fee methodology, and equally save this bill as a file of their system.
If the consumer is late in settling the bill, Dylan must take time to interrogate his accounts receivable ledger and attain out to the consumer by telephone or electronic mail to remind them personally.
Dylan would then have to examine this fee appeared in his checking account and once more should file this in his accounting software program to take away it from his accounts receivable ledger.
Job lastly performed.
Dylan loves so many conveniences of eInvoicing. However as a nature lover, most of all, he’s blissful to be supporting the surroundings by lowering power, cupboard space and all that paper.
Situation 2 – Dylan switches to eInvoicing
So, what occurs when Dylan switches to eInvoicing?
Upon finishing a job, Dylan can now merely fireplace up his cell phone to instantly entry his cloud accounting, proper there on the consumer’s premises.
As soon as logged into cloud accounting, Dylan may have his buyer data already saved. He merely must enter the eInvoice particulars and fireplace it off.
The consumer then receives a notification of the bill. If they’ve an eInvoicing prepared accounting software program, the bill will be imported instantly into their system. All they should do now could be to pay the Bill and file the fee of their accounting software program with a number of clicks.
The simplicity and pace of eInvoicing, free from PDFS and emailing, slashes fee turnaround occasions, boosting money move whereas lowering admin.
Dylan can even see that the bill was obtained and skim with ‘learn receipts’, giving him surety over the supply of his eInvoice.
Higher but, if the consumer is late in paying, the eInvoicing performance will ship them automated reminders, that means Dylan can ship and overlook.
*Each Dylan the cleaner and Sandy Lim have taken up eInvoicing within the Reel World. Within the Reel World, Dylan Conway is the proprietor of Ecko Cleansing Options, an eco-friendly cleansing enterprise whereas Sandy Lim, one among Dylan’s shoppers, owns Fringe Profit, a vibrant hair salon by the water. It’s not laborious to see why the pace, ease, and automation of eInvoicing is quickly changing into the one method to bill. Try Reckon’s eInvoicing options right here to make the swap at present.