When compared to electronic invoicing, traditional invoicing is a costly and time-consuming process:
- You have to print the statement, put it in an envelope, find stamps, go to a post office and send the invoice to the client.
- On the receiving end, that client must write a check, find envelopes and stamps, and go to the post office.
- Finally, you receive a check in the mail and need to make a trip to the bank to make the deposit — that requires time spent out of the office.
On the other hand, electronic invoicing (e-invoicing) works very differently.
With this billing method, you’re able to send the statement instantly via email. The client can then pay for the invoice via credit card or e-check/ACH, after which funds are directly deposited into your bank account.
The primary benefit of this payment method is speed. Whereas paper-based invoicing can take weeks from start to finish, each e-invoicing step takes only a few seconds to complete. In fact, it’s possible for funds to clear on the day that you send the electronic invoice. This is ideal for businesses that are concerned about regular and predictable cash flow.
The advantages don’t stop there.
Additional Benefits of Electronic Invoicing
Cost is another major selling point. You no longer have to spend money on ink, paper or postage. You don’t even have to buy gas to go to the post office or the bank.
E-invoicing also frees a lot of time (i.e., employee hours) that might otherwise be spent managing unnecessary paperwork. According to some estimates, each paper-based check costs businesses anywhere from $4 to $20.
Electronic invoicing also helps to reduce the frequency of missing bills, late payments and bounced checks. Again, sending and receiving e-statements is instantaneous. So if there is ever a discrepancy, you can follow up in a matter of seconds — not weeks.
Don’t forget the environmental savings that electronic invoicing provides. With fewer resources involved, you’re able to reduce your organization’s carbon footprint — often by a lot.
These benefits explain why nearly 30 percent of companies already use electronic invoicing. And it’s not just the for-profit world. Even the federal government has adopted this billing method, helping to save taxpayers $450 million a year.
Making Electronic Invoicing Work for You
You don’t necessarily need fancy invoicing software to get started, but you do need to set up your payment environment correctly:
- If your clients pay using e-checks or electronic transfers, you’ll need to set up ACH transactions in your practice.
- If your clients prefer paying via credit card, you’ll need a merchant account plus a payment gateway or hosted payment page.
At BluePay, we already have working ACH relationships with nine major banks, and we also offer PCI-compliant processing for secure credit card transactions. As a bonus, our payment solutions include recurring billing. Once enabled, all invoices and payments occur automatically, without you or your clients having to intervene.
To learn more about BluePay’s electronic invoicing solutions, contact us today for a free consultation.