Guide to Electronic Invoices

Electronic invoices will save your business money and time

By Margaret Haerens

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Most companies spend millions of dollars a year processing invoices; processing invoices can cost from $20 to more than $40–or even more–per invoice, so why not think electronic invoices?

By choosing an electronic invoicing solution (known as EIP, or electronic invoicing and payment), your small business can reduce manual invoice processing costs significantly and generate benefits in other areas as well. Employees out in the field or on the road can generate real-time electronic invoices; less paperwork means less clutter and less spent on paper supplies and postage; electronic invoice processing saves your accounts payable division time and effort by eliminating paper invoices; streamlining the accounts payable process can result in faster payments and better cash flow; and electronic billing can provide price reconciliation, which assures pricing accuracy on every invoice.

Before choosing an electronic invoicing solution, here are some key questions:

Does electronic invoicing have all the features I need at an affordable price?
Will such a system run on my computer and work on an office network?
Does the vendor offer online and phone support?

Action Steps
The best contacts and resources to help you get it done

Electronic invoices allow you to immediately connect with customers and suppliers

Converting to an electronic invoicing processing system requires a commitment at all levels of your business. If you are ready, however, the advantages are numerous.

I recommend: DO2 Technologies Inc. offers a number of electronic invoicing packages for your business, including OpenInvoice Professional, which provides spend capture and analysis down to the line item level. QuickBooks Merchant Services enables small businesses to e-mail invoices and track payments online. Data can be automatically integrated with QuickBooks to better manage your finances. Ariba Inc. also has a number of electronic invoicing solutions to fit your business needs.

Web-based invoicing networks can supply electronic invoice forms

Although many financial systems and electronic invoice formats are not compatible, web-based solutions can connect you to your suppliers and customers worldwide.

I recommend: Electronic invoicing solutions include bill design, bill marketing, document archiving and retrieval, Web billing and electronic payments. OB10 is the leading global e-invoicing network that facilitates electronic invoice forms between different billing systems in different countries. It acts as a go-between to make sure your business, your suppliers and your customers are networked and electronic invoicing can be immediate, accurate and efficient. vOfficeware, Inc.'s vO Invoice program allows small businesses to create portable document format (PDF) files to send to clients and customers and to accurately track payments. Billtrust handles both paper billing and e-billing via email or the Internet. Nexus Systems, Inc. designed the Payables Nexus software system, which is a fully automated, web-based, purchase order (PO) and invoice management application that integrates seamlessly with general ledger (GL) accounting systems.

Portable electronic invoices are convenient for small businesses on the go

When you have people out in the field, you want a system that allows them to create a real-time electronic invoice that accurately reflects the full services they are providing to customers as they discuss and authorize them.

I recommend: Corrigo, Inc. has created the WorkTrack Field Service Management Systems with QuickBook Enterprise Solutions, which helps your employees on the road and out in the field use real-time invoicing and mobile work orders. Aradial Technologies, Inc. provides Mobile Radius/AAA server software packages that allow integration with a mobile operator’s customer care and billing system.

Tips & Tactics
Helpful advice for making the most of this Guide

Your first consideration has to be whether or not your business is technologically prepared to make the transition to an electronic invoicing system. If you are using a basic accounting package like QuickStep or Peachtree, you are ready for an electronic invoicing solution.
Be sure to plan for a growing business. What electronic invoice presentment will you need to take your company global? Should you invest in a web-based electronic invoice solution now? These answers are important because you want a system that grows along with you at all stages of your business development.
Watch for charges that can make electronic invoicing expensive. Some billing services let you use their online billing and e-mail billing services for free but charge a fee for paper bill processing. Since many businesses need a blend of electronic and paper billing, make sure you understand the costs of each fully.

The official source of Electronic Invoices is the Electronic Invoices page at Business.com

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