What Is E-Invoicing? +7 Best E-Invoicing Software (2024)

What Is E-Invoicing? +6 Best E-Invoicing Software (2024)

An invoice is a term we use to define the expenses that are incurred while utilizing a product/service. Like all stages of the procurement process, invoice generation and management have undergone a complete digital transformation

Today, e-invoicing has taken the place of traditional invoicing practices. 

In this guide, we’ll define e-invoicing, explore the benefits of digital invoicing, and provide a buyer’s guide for the best e-invoicing software.

What is E-Invoicing?

E-invoicing automates and streamlines invoices and compliance documentation. 

An e-invoice enforces error-free documents using digitized invoice data and verifying it against the contracts, purchase orders, receipts, etc. This form of an electronic invoice is transmitted over a digital business network. An e-invoice is coded according to data from the document and business rules. 

With such a process in place, the e-invoice undergoes validation before the posting of the payment details. An e-invoice makes digital information easily accessible compared to a traditional paper-based system. 

An e-invoicing system provides solutions for the following:

  • Management of picking up tedious compliance tasks.
  • Enhanced collaboration within the organization and partners involved in training. 
  • Maximization of early payment discounts and working capital optimization. 
  • Reduced risk of fraud and over-payment.
  • Amplified cash flow for suppliers that offer timely payment. 

What’s the Difference Between Traditional Invoices and E-Invoices?

When comparing traditional invoicing and e-invoicing, here are the core differences: 

Traditional invoice

An invoice or a traditional invoice is a paper-based document to process the costs thus incurred and their payment. With traditional invoicing, invoice generation and payment receiving can become cumbersome.

traditional-invoice

Additionally, traditional invoices are generated manually and run a considerable risk of inaccuracies and human errors. Such a method slows down the entire invoicing process, making it a labor-intensive task. 

These factors contribute greatly to payment delays and decreased cash flows for sellers. This stands true specifically in the case of small business owners. 

Traditional invoice causes the costs for invoice printing, labor, postage, and invoice filing. 

The management of traditional invoices is generally manual. Hence, it becomes cumbersome to manage, retain, and access the information and records. This significantly impacts the performance of the business.

A fake or compromised traditional invoice is always a problem. With a wrong invoice sent, the risk of fraud increases manifold.

E-invoices

With e-invoices, errors and manual interventions are removed. There is minimal-to-zero paperwork in most situations. The seller receives a purchase order and an invoice is generated at the same. With this, the invoice is sent to the buyer automatically from the software.

e-invoice-example

On the other hand, the buyer receives an e-invoice for a purchase order. The buyer’s software verifies the e-invoice for payment authorization. This process eliminates manual intervention and removes the possibility of human error. 

E-invoices are 60-80% more efficient than traditional invoicing. E-invoice payments are received faster compared to traditional methods of invoicing.

The cost of e-invoice is significantly reduced compared to traditional forms of invoicing. Moreover, buyers can reinstate their payment terms, late fee reduction, and derive benefits like early payment discounts. 

For e-invoicing, you will require only one software to handle all the invoice management activities. The paperwork is thus reduced which increases the data transparency and information accuracy. 

With an automated e-invoice generation, there is limited to zero human intervention. This makes it practically difficult to rig the e-invoices fraudulently.

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Benefits of E-Invoicing

Replacing the traditional invoicing system with an e-invoicing system has various benefits. Let us take a look at these:

  1. Cost reduction
  2. Enhanced compliance with enhanced processing accuracy
  3. Quicker invoice processing
  4. Invoice automation
  5. Web-based access to invoices
  6. Saves resources

1. Cost reduction

As discussed previously, manual invoicing takes a lot of paperwork before everything is authorized and validated. With e-invoicing, paperwork is reduced, which brings down the cost of the paper significantly. 

2. Enhanced compliance with enhanced processing accuracy

Processing manual or paper-based invoices takes time and is prone to human errors. With e-invoicing, human intervention is reduced to a large extent, removing the probability of errors. Moreover, the global standards and regulations are always followed with e-invoicing.

3. Quicker invoice processing

The e-invoicing software applications are used to process the e-invoices. The applications are designed in a way to make the processing faster. With traditional invoices, an employee must verify all the details manually. 

4. Invoice automation

Since the advent of technology, humans are trying very hard to automate everything they can. So why not invoices? With e-invoicing tools, invoices are generated as soon as an order confirms.

5. Web-based access to invoices

With the power of the internet, e-invoices can be accessed from literally anywhere and you can send them while on the go – accessible via any web browser while still be safely secured.

6. Saves resources

With traditional invoicing methods, people were kept occupied to manually verify invoices. But e-invoices eliminate this need and save up resources that can be efficiently used.

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Drive adoption of your e-procurement and e-invoicing applications with Whatfix

Features of E-Invoicing Software

E-invoicing should be completely electronic, and all the data should be integrated into the system. This ensures seamless processes like contract matching, purchase orders, etc. 

Here are the features of e-invoicing software applications that you should look out for:

1. Send and receive invoices using automation

Generally, companies only take up one way of invoicing automation – either automating the sending of the invoice or receiving it. When looking for e-invoicing solutions, see if you can automate sending and receiving e-invoices, then prioritize using that solution. 

With automation in both processes, you achieve a faster payment period, save business costs, and enhance scalability. In addition to this, you get the best ROI possible.

2. Multi-currency customization

An invoice represents your brand as it includes your company logo. Choose an e-invoicing software to select the invoice design from the template library. Additionally, it should offer an option to help you create your customized e-invoice design.

Moreover, your e-invoicing application should handle taxation and compliance with international laws without hassle when dealing with international clients. It should provide support to multiple currencies without much effort.

3. Supports all types of invoice formats

Often invoices must be converted into multiple types of e-invoice formats for your clients. Your e-invoicing software should be able to work with all the formats without storing various versions of the same invoice.

4. Integration with existing procurement systems

Having your e-invoicing application gel well with existing invoicing systems is important. If you have to input all the data manually into your new system, then look for e-invoicing solutions that offer seamless integration with an existing system.

5. Capability to archive invoices

Managing old invoices can be tedious, and when the data increases, the management becomes cumbersome. When you look for a new e-invoicing application, take a look at its capability to archive old invoices. 

An e-invoicing application encrypts the data to add an extra layer of security. Additionally, it also allows you to set a date to automatically purge invoices that are no longer in use.

6. Accepts multiple forms of payment

Modern customers need a solution that allows all kinds of payment flexibilities. Therefore, your e-invoicing tool should allow you to accept all forms of payment, including a third-party payment tool or even a credit card. 

The application should also be flexible enough to accommodate the tax changes and price fluctuations without much manual intervention.

7. Analytics integration

A reporting and overview dashboard helps you gain more valuable insights about your business activities so far. Make sure your e-invoicing tool has analytical capabilities. This will enhance your decision-making process and save time analyzing a pattern.

An e-invoicing application should be able enough to collect data, develop reports and offer insights into historical records.

8. Safety and assistance

Safety is of utmost importance when dealing with invoices and payments from domestic as well as international clients. It is essential to buy e-invoicing software from a vendor that understands the value of security and safety.

Additionally, the vendor should be able to provide support throughout the implementation. Great customer service should not end as soon as the application installation is done. It should continue even after that. 

An e-invoicing application automates invoice generation without zero to minimal human intervention. The application that offers all these options is the correct solution for you.

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7 Best E-Invoicing Sotware Tools in 2024

There are various e-invoicing applications available in the market. All the applications offer various benefits and features for their customers. Some vendors offer customized solutions that work according to customer preferences. 

But here are the top e-invoicing applications of 2024 that we would like you to check out:

ariba logo

1. SAP Ariba

G2 Review Rating: 4.0 out of 5 stars

SAP Ariba is a cloud-based procurement software to enhance collaborative spending, finance, and sales management.

Ariba works on a web browser and offers a user-friendly interface. With this solution, it is effortless to work with your trade partners for spending management, management of finances, and acceleration of sales. You can establish everything with the use of a single platform. 

Ariba is available by subscription/on-demand service. Therefore, there is no hassle with installation and software updates. Additionally, it is scalable and cost-efficient. SAP Ariba offers a standard package that comes free of cost.

sap ariba

2. Avalara

G2 Review Rating: 4.0 out of 5 stars

Avalara helps businesses around the world with tax compliance. This application allows entrepreneurs to handle tax obligations in changing states and countries. 

Its offer Avalara Tax Compliance Suite that helps you with various taxes, including VAT, excise, sales, etc. The solution offers over 700 integrations for your business’s accounting, ERP, and CRM requirements. 

There are three pricing options for Avalara depending upon your business size and other taxation requirements. Its most basic package begins at USD $29 per month.

avalara-screenshot
zycus logo

3. Zycus

G2 Review Rating: 3.5 out of 5 stars

Zycus eProcurement offers a fresh way to adhere to compliance for preferred buying. The platform is known to intuitively guide the user towards the correct buying journey using a self-learning engine called MerlinAI.

Its platform claims to elevate procurement by optimizing the efforts, lowering the turnaround time, and enhancing efficiency. You can start using Zycus with a basic free plan and then upgrade according to your required features.

zycus p2p
coupa logo

4. Coupa

G2 Review Rating: 4.0 out of 5 stars

Coupa is known for managing every type of goods, services, etc. in the supply chain and procurement process. It offers an effortless experience for employees and suppliers to digitize the following processes:

  • Guided buying
  • Contract and catalog management
  • Budget definition and approval
  • Inventory management
  • Fraud prevention and mitigation

Read our post to learn more about Coupa implementation.

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comarch-logo

5. Comarch

G2 Review Rating: N/A

Comarch offers a combination of e-sourcing, e-procurement, e-invoicing, and accounts payable invoice automation. It provides enhanced collaboration between businesses and business partners. 

It uses RPA (robotic process automation) to handle documentation and takes a holistic approach to data exchange. This way, an entrepreneur can understand the optimization of working capital better.

comarch-e-invoicing
corcentric-logo

6. Corcentric

G2 Review Rating: 3.0 out of 5 stars

Corcentric is an end-to-end procurement provider with a global footprint. This includes accounts payable along with accounts receivable solutions. 

Its solution focuses on cost reduction, optimization of working capital, and understanding revenue to change how companies perform and get their payment. 

Corcentric’s modular SaaS-based Source-to-Pay includes analytical capabilities, sourcing, managing suppliers, contract lifecycle management, invoice management, etc. 

Its solution offers guidance to save money through data integration. It manages workflows across purchases, suppliers, contracts, and finances. Organizations reap the following benefits of this solution: enhanced efficiency, saving money, risk reduction, and improved working capital.

corcentric-screenshot

7. Billdu

G2 Review Rating: 3.3 out of 5 stars

Billdu is an advanced invoicing software tailored to streamline financial operations for small businesses and freelancers. It offers a range of tools designed to simplify everyday tasks, ensuring that your financial workflow is efficient and hassle-free.

Key features include a free invoice generator that allows quick creation of professional invoices, alongside capabilities for tracking expenses and managing all types of business documents. These functions work together to maintain financial organization and enhance the professionalism of your business communications.

With Billdu, you can also ensure faster payment processes and keep your business running smoothly. This makes it an indispensable tool for any modern business looking to optimize their financial operations.

Billdu screenshot
Drive adoption of e-invoicing and other procurement applications such as Ariba, Coupa, and more with Whatfix

While e-invoicing, S2P, vendor management, and other procurement software all help automate and streamline the procurement process – without a proper adoption strategy, your e-invoicing and procurement software investments will fail.

Whatfix’s digital adoption platform provides organizations with the tools to create in-app guidance to create engaging onboarding, learning, and reinforcement content, as well as on-demand support content, that overlays on your e-invoicing and procurement applications. 

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Whatfix allows organizations to create:

  • Onboarding task lists
  • Product tours
  • Interactive walkthroughs
  • Step-by-step guides and tutorials
  • Smart tips
  • Nudges
  • Compliance alerts
  • Field validations
  • Embedded knowledge bases
  • and more

Drive adoption of your S2P, procurement, and e-invoicing applications with Whatfix now!

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