As everything in the world becomes more digital, it is not surprising that businesses abroad are also looking for ways to simplify payments. And most often this can be achieved using e-invoicing or an electronic invoicing form. On average, between the direct payment and the time spent, the cost of processing the invoice is approximately 30 euros. However, processing an electronic invoice-even with the cost of software-can cost you as little as 7 euros.
With manual and paper processes, Finance departments spend too much time correcting manual errors and performing every day, repetitive task that exhaust the workday. Therefore, electronic payments are a win-win option and many entrepreneurs from Russia, Ukraine and Kazakhstan have already been able to appreciate all the advantages of this tool. So, we suggest that you understand the question of why a business abroad should use e-invoicing.
What is electronic invoicing?
Electronic invoicing is defined as the exchange and storage of legally valid invoices in electronic format only between trading partners. Generally, electronic invoices do not require a hard copy, but they are legal as important as paper-based payment documents. They are used as proof of payment or as tax originals.
However, in order for an electronic invoice to be valid, it must contain correct data and be reliable, namely; meet the established requirements clearly indicate the goods or services received, and are executed based on the payment terms established by the seller before the transaction.
Also, do not forget, you cannot destroy such documents; they may be required for reporting to the tax authorities. And each country has its own terms for storing them, for example; in the UK-22 months, in Russia and Ukraine-5 years, in the States-3 years.
Advantages of invoicing
Electronic invoicing is a good idea for many reasons, and one of the most important is the ability to eliminate the human factor from the process. The fact is that paper invoices are entered manually into AP systems, and this process takes a lot of time and is usually full of errors. In addition, paper invoices are often moved from one location to another, which increases the risk of their loss or delay in receipt or execution.
Taking this advantage alone into account, electronic invoicing can save companies up to about 80% of the running costs of managing payments.
For example, among modern payment tools, the e-invoicing service is offered by the British payment system; in addition, the platform provides ready-made templates to facilitate business operations abroad.
How do I get started with e-invoices?
Regardless of how the e-invoice was generated, it is important to make sure that you avoid serious commissions when paying for it. For example, for international transfers, a tool such as the British payment system significantly reduces the cost of paying bills. In addition, you will be able to use 34 currencies and receive payments to your Bank details in such common currencies as pounds, euros, US dollars, and Russian rubles.
In the future, this will allow you to make subsequent quick payment of invoices to your partners at the local level. And we know that for national transactions, the most important thing is to ensure that your suppliers receive money using their preferred payment method.
Setting up international payments in business, especially currency payments, is a responsible task. But the right payment tools will help you improve your business abroad, save time and money.