Onlne invoicing and e-mail invoicing

The invoicing of clients is a highly important aspect of running a business. An invoice acknowledges the services (or goods) have been received and initiates the payment process for those goods. When carried out by post, invoicing can be a time consuming and expensive process. In the past 5 years e-mail and online invoicing has revolutionised this practice, paving the way for cheap, efficient invoice distribution.

Receiving Electronic Invoices

E-mail or online invoicing is carried out using continually updated client data files, which contain all information required to supply them with invoices. Dates on which invoices are to be sent should be agreed with the client and then automated.

There are two ways in which an invoice can be received electronically. In both cases an e-mail will be received, stating that said invoice is now viewable. With e-mail invoicing, this e-mail will have an attachment containing the customer invoice, so they are able to download it onto their computer at that time. Online invoicing differs slightly as the client's invoice will be available to them via a link on the e-mail they have received.

E-mailing an invoice to a client or customer provides a cheaper, simpler and more secure method of invoice distribution and payment. Online invoicing automates the sending of regular invoices to a business' client base by email; thus eliminating the need to print, envelope, and post invoices at an estimated 80% greater cost.

Once sent, online invoicing allows the invoice to be tracked, ensuring it is received by the client. An equally useful feature of online invoicing here is that it is able to flag late invoice payments and will automatically send follow up reminders and dunning emails. This flagging of overdue payments is instantly brought to the attention of the invoicing company so they can monitor the situation and prevent its escalation.

Paying Electronic Invoices

Electronic invoice payments can be made online by clients using a company website which has a payment feature. Often, the company receiving payments will outsource another company for the creation of this payment feature. This is an important feature of Online Invoicing, so a company who specialise is Online Invoicing and the technology involved, should always be called upon to set this up.

Alternatively, a client may employ the use of an outside website to facilitate their bill paying, for example, that of their bank. The client will send money from their online bank account into that of the owed company. This method can be useful as can make possible the electronic payment of multiple invoices from companies who have been indexed to receive regular payments. Money is therefore removed automatically from a client's bank account, saving them time.

E-mail Invoicing and Security

With email invoicing, invoices are received by email, or as a link from an email. This means invoices are only seen by the intended recipient, who has given their personal email address and password in order to do so. The sender of the invoice benefits from this method of distribution also, as they can be sure that the invoice has been delivered, through an automatic confirmation email; and if the invoice is a link from the email, can even be notified if the recipient has visited this page accessing their invoice.

Online invoicing is also more convenient for clients, who can now store their invoices electronically as opposed to in paper form. This saves space in the client's office, and offers them the added advantage of being able to conduct computerised searches to find a specific document, as opposed to dissecting a filing cabinet.

To the disadvantage, it could be seen as easier to accidentally ignore or delete an email than it would be a letter. However, this can be overcome by making the client aware of their expected invoice arrival date.