What is an e-invoice?
An e-invoice is an electronically distributed invoice in a predefined standardized format. It contains invoice data in a structured form and can be automatically imported into the buyer's account payable system.
They include a visual representation of the invoice data.
Misconceptions about e-invoice.
You might believe some particular elements can be classified as an invoice, this is not true. Here are some things that an e-invoice is NOT:
•A scanned paper invoice
•Images of an invoice in jpg
• Data issued in pdf format
Key function required to use an e-invoice
There are two major requirements to use an e-invoice. They include:
•An e-invoice needs to be created with the appropriate structure. E-invoices have an approved standardised format and therefore all online invoice generators are to have the standard structure.
•E-invoices need to be transferred from the seller's system (i.e your system) to the buyer's (your customer) system.
What is e-invoicing?
E-invoicing, also known as electronic invoicing or digital invoicing, is a system of billing where B2B invoices are authenticated electronically and sent to a customer online through specified structured data exchange.
Using Invoice Generators For E-invoicing: What is an Invoice Generator?
An invoice generator is an online tool that is used to generate invoices for goods and services electronically. When using an invoice generator, the calculation process is automatic. All that is required of you is to enter the necessary business and customer-related information, and the prices of items purchased into a predetermined template.
Steps to Generate Invoices using Bridger's Free Invoice Generator
Apart from bringing B2B payments online and providing supply chain financing for our customers, one of our other goals is to make your life easy. Therefore at Bridger, you have access to important tools and resources that helps your business. One such tool is our Free Invoice Generator. Here are some steps to access this tool:
•Step 1: Provide all the business-related information. These include: your business name, your address, BVN, state and country
•Step 2: Enter all the accurate details of the customer such as the name of the customer, the name and full address/contact information of the customer
•Step 3: After completely registering the details of both you and your customer, proceed to provide invoice-related details. These include the name of the item/product purchased, description, rate, quantity, amount etc.
•Step 4: Once all these are done, simply click the "generate PDF" button and download your invoice.
Benefits of e-invoicing
Some of the merits enjoyed by using e-invoicing include:
•Better Organization: If you have a growing business with a large customer base, creating and managing manual invoices can be stressful and if not managed well, chaotic. E-invoicing helps your business successfully and efficiently create and store invoice systems without the stress otherwise involved manually.
•Standardized format: E-invoicing uses an organized structure that abides by Government rules. This creates uniformity and reduces confusion.
•Reduction in error: E-invoices allow for data reconciliation and automatic calculation which reduces the chances of an error to little or zero.
•Less time and resources consuming: The process of manually creating an invoice involves a lot of activities and the use of resources like paper, stamps etc. With e-invoicing, your business can save time and resources.
•Access to credit routes: The use of e-invoices gives your business faster and easier access to other forms of financing like invoice discounting and factoring.
•Easy Tracking: Invoices can be monitored in real-time because invoices provide a built-in paper trail.
Some of the disadvantages experienced by using e-invoicing might include:
•Spam filter: Your electronic invoice might land directly in the spam folder of the customer's email. This is usually dependent on your email settings.
Using e-invoicing gets you started on ensuring a more efficient way of growing your business. Get started on Bridger today to access our free invoice generator and other tools. Choose Easy, Choose Bridger.