If you’re still using paper-based invoices, you know the pain of draining your time and energy. This is no different for small businesses that strive for growth and fall short due to inaccuracy, misunderstandings, lack of professionalism, and whatnot. These paper bills are not only difficult to handle but also lead to payment delays.
So, now you know why most businesses are turning to e-invoices. A report by SNS Insider Research itself states that the e-invoicing market is projected to exceed $60 billion by 2032. In the coming days, we might see more businesses adopting the paperless accounts payable process in a bid to improve accuracy and cut-off invoice delivery time. In fact, there are lots of other benefits of using paperless invoice processing, which we will find out later in this blog. First, let us understand the basics of paperless invoice processing.
What is Paperless Invoice Processing?
Paperless invoice processing refers to creating online invoices that only require a couple of minutes to get your invoice ready. It is a modern and convenient invoicing process that not only saves you time but also helps you maintain financial records digitally.
Interestingly, paperless invoices can neither be misplaced nor lose their quality. In addition to that, invoices made online are also professional and highly accurate, helping you deliver customer satisfaction and ensuring you get paid promptly.
The reason behind businesses choosing paperless invoice processing is they get more customization options. Rightly said, when sending electronic invoices to customers, company owners can customize invoice templates to suit each individual’s needs. As a result, they may have more happy customers once the paperless invoice processing method is introduced.
How Does Paperless Invoicing Work?
First of all, you should know that the paperless invoicing process only works on invoicing software. This is because all invoices are saved digitally instead of storing them in archive boxes. So, if you are switching to paperless invoice processing, make sure you have powerful invoicing software.
Now, coming back to how does it work? Simply, explore pre-designed invoice templates and pick any one of your choice.
- You can find more than 60 ready-to-use invoice templates on invoicing software, Moon Invoice in different formats like Google Docs, PDF, and more.
- Next, you only need to populate the necessary details and it’s all done, save it.
- The information once entered will get automatically saved on the cloud so that you don’t need to type full details when creating an invoice for the same client in the future.
This is how it saves your time as there is no need for manual calculations or formatting the invoice from scratch. The automated invoicing process runs so smoothly that you can impress your clients by issuing timely invoices and encouraging them to pay the due amount as quickly as possible.
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4 Steps to Implement Paperless Invoicing Process
Migrating to a complete paperless invoice method is only a 4-step process. If things aren’t working out for your business using hand-written invoices, then you can follow these steps and convert to paperless invoice processing.
1. Create a Transition Plan
Discuss with your accounting team what issues you are facing with paper-made invoices. Basically, you need to analyze how soon you need the automated invoicing process. So, ask your team about their opinion and then, create a transition plan. Your plan should include how you will manage past invoices, tax documents, and expense receipts. Also, finalize your budget plan before you migrate to the paperless invoice process.
2. Identify Your Requirements
Thereafter, list out your invoicing requirements so that later on, it will be easier to choose the invoicing plan. Know how many invoices you send per day or per month. Also, check how many members of your team will be handling the online invoice process. Also, know if accountants need time to get familiar with paperless invoice processing.
3. Adopt Automation Software
Explore different invoicing software and select the one that aligns perfectly with your business requirements. Check whether the chosen software offers customizable templates, expense tracker, cloud storage, and reliable customer support. Additionally, review its pricing to ensure you choose a budget-friendly plan that meets your needs.
4. Manage Invoices Digitally
Once you have access to invoicing software, ditch the old way of making hand-written invoices and start creating invoices online. You can generate unlimited invoices using readymade invoice templates and keep track of every invoice. Also, you can extract accurate data from past invoices to generate sales or tax reports in just a few taps.
Pros & Cons of Paperless Invoicing
Take a look at what can be positives and negatives once you adopt the paperless invoicing process.
Paperless Invoicing Pros
1. Time-saving
Paperless invoices require no extra time as they can be generated using readymade templates. You don’t need time for designing and formatting an invoice.
2. Accuracy
E-invoices guarantee accuracy no matter how hurriedly you generate an invoice. The total amount is automatically calculated, leaving no chance of revisions or check-ups.
3. Quick payments
Paperless invoices are the reason why clients happily make payments in no time. These professionally-made invoices help them understand easily thus, boosting payments.
4. Clients satisfaction
Invoices made using online templates are more likely to impress your clients than sending poorly-written invoices on paper. Paperless invoices also increase your brand reputation.
Paperless Invoicing Cons
1. Monthly or yearly investment
Switching to a paperless invoicing process means you need to invest in automation tools. You need to purchase invoicing plans on a monthly or yearly basis.
2. Requires a stable internet
The automated invoice generation process is nothing without an internet connection. So, you need to make sure you have a stable internet connection within your office premises.
3. Possibility of spam emails
While there is no real-life issue of sending invoices online, sometimes an invoice sent via email may get stuck in spam folders. Hence, customers may not be able to find it quickly.
What are the Goals Of Paperless Invoice Processing?
Here are objectives for which businesses prefer using paperless invoices instead of paper-made invoice copies.
1. Faster Invoice Collection Process
Nobody wants their debt collection process to be slow, especially when they are in the driving seat of the business. Paperless invoices can help them collect the payment faster than with little to no reminders. This process also eliminates chasing unpaid invoices because customers would get a clear idea of their due amount and can pay quickly using online payment gateways.
2. Accounts Receivable Management
Your account receivable team knows the pain of collecting invoices & receipts from every corner of the office especially, during the tax season. But that’s not the case with paperless invoices. You can find all invoices & expense receipts well organized within the software. This means you can easily generate tax reports or business reports in the blink of an eye.
3. Easy Accessibility
Making invoices on paper means you can’t carry them in your pocket wherever you go. This long-term challenge can now be resolved with the adoption of paperless invoice processing. Once created, paperless invoices are stored in the cloud platform, making it very easy to access them from remote locations.
Reduce Your Business Workload With Paperless Invoices
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Conclusion
Paperless invoicing process, in a nutshell, is all about driving customer satisfaction, managing business finances, and accomplishing your goals quickly. Since now you know what benefits it promises, switching to paperless invoices can make sure your business thrives amid stiff competition. But, as we mentioned, you need software to start a paperless invoicing process. That’s where Moon Invoice comes in.
The moment you thought of going with a paperless invoicing process, one thing you might have looked for is choosing the software. Moon Invoice can help you implement a paperless invoicing process right away to wipe off your workload and accelerate the payment collection process. Try using it for free.
FAQs
Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.
