An online invoice software does billing and might also include accounting system with it too. You can also do bookkeeping, accounting, tax management and other tasks in addition to just generating bills in this system. Apart from this it also includes crucial business features such as reminders, hours tracking, financial calendars, reporting, records and database management and several others. It is preferable to choose a cloud-based or online platform for invoicing. It is important to first analyse the current state of online invoice software before investing in it.
State of E-invoicing globally
Although the technology is becoming more and more powerful still many businesses globally even in advanced and developed nations do invoicing manually. Using paper bills, hand written notes, document or excel sheet is quite common means used by businesses in order to generate invoices. But these methods are not reliable and when it comes to managing records of 5-10 years then many a times the records gets misplaced or are out of order and it requires a lot of manual work and time in order to correct all the stuff. Also there is no means of reporting or future forecasting that is available for the business in order to make future decisions pertaining to the business.
As per analysis and research, it was found that the total volume of the businesses that were using online invoice software was 30 billion in 2016 and it grew at the rate of 10-20% on an annual basis. Although 30 billion of invoicing software were implemented, only 8.4% of the bills and invoices were electronically exchanged globally according to Federal Reserve Study in 2016. Even developed countries like the US the figure of e-invoicing is 24% only and according to this study, e-invoicing can also save the businesses an amount of 4-8$ per invoice.
Businesses need to be properly made aware of the benefits and usage of e-invoicing system so that they are educated to adopt these software and efficient technology. An online invoice software is completely automated and provides straight-through processing of the bills. It is a proven fact that the top enterprises of the world achieved straight through processing of invoices by these software and this resulted in 81% lower cost of invoice processing and also made the processing time up to 77% faster. This also led to a better customer satisfaction and an increase in the sales as well.