Reduce Delays With Electronic Invoicing With Payment Link For E-Commerce Transactions
There is often a large lag between the time an invoice arrives and the date it is paid. This lag leads to costly customer service calls and increases DSO(Daily Sales Outstanding).
One way to decrease a company's DSO is to implement electronic invoicing with a payment link. This is a method of sending invoices with an embedded "Pay Now" button that directs customers to a secure payment page.
Using an online invoicing system with a payment processing link for e-commerce transactions saves you time and money. Look for one that includes a "Pay Now" or “Pay Invoice” button that is included in the invoice email you send to customers and allows them to securely enter their credit card details or use an alternative method of payment. The invoicing solution should also include the ability to automatically generate payment reminders and accounts receivable aging reports, so you can monitor outstanding invoices and prioritize collections efforts.
Many e-invoicing systems provide an easy way to customize the invoice to match your company's branding and add legal footers, discounts, coupons, tax rates, line items, and more. Some systems also include a dashboard to view payment status and historical performance, including how long it takes for customers to pay your invoices. This data helps you make better business decisions and improve cash flow.
E-invoicing reduces the time and cost of manual paper-based processes that can slow down bill payment, leading to costly late fees for both you and your customer. In addition, it eliminates the potential for errors in duplicated or inflated invoices and missing payment information that can occur when a paper-based invoice is manually entered into your accounts payable (AP) and accounts receivable (AR) systems.
Because e-invoices are automatically sent to the buyer’s email address and are immediately available in their online account, they eliminate the need for your staff to manually enter them into your AP and AR systems. This also reduces the chance of human error, such as typing in the wrong amount or forgetting to include a discount or tax rate.
E-invoicing provides a digital paper trail and enables you to offer early-payment incentives to your customers, which can accelerate the bill payment process. But remember that some customers may prefer a hard copy, so you should always communicate with them before sending invoices electronically. Look for a robust invoicing system that integrates into your existing AP and supply chain automation solutions, enabling touchless invoice processing and more efficient business operations.
Using an electronic invoice system with payment processing links for e-commerce transactions eliminates the need for printed and posted paper documents. That means fewer printers, scanners and photocopiers in your office, plus shelves of storage reclaimed for more important things. Efficient digital invoice management also reduces data entry errors, which often result in a misplaced or lost document that needs to be tracked down and replaced. In turn, this helps prevent erroneous entries that might cause financial trouble for your company or customers.
In addition, using a system with an automatic invoice approval process makes it easier to streamline bill processing. That means more invoices get paid faster, which saves money on bank fees and interest charges. And it reduces the number of days sales are outstanding, which helps you qualify for supplier early payment discounts.
It’s also a great way to help protect your business against cyber attacks and data theft, since invoice information includes account numbers, business addresses and other sensitive information that hackers would love to see. And it’s less risky than storing paper invoices that could be damaged or lost in an office fire or flood.
When a client receives an invoice via email, they can access the information on their computer, smartphone or tablet at any time. This eliminates the need to send physical copies to customers, which can be inconvenient or even impossible for them to locate depending on their email settings and spam filters.
The automated process of sending invoices electronically also ensures that the buyer has an accurate and complete record of the transaction for both accounting purposes and tax compliance. This reduces the time spent in comparing records and resolving disputes, which can lead to costly errors.
The automated invoice process can also be helpful when it comes to creating a new accounts receivable process or transferring existing ones from one software solution to another. A standard e-invoicing system uses Universal Business Language (UBL) standards and an electronic exchange network to transmit documents from the vendor to the buyer. This allows the buyers to automatically upload the invoice into their systems and processes, which makes it faster and easier for both parties to manage accounts payable and customer relationships.
Increase Customer Satisfaction
A well-designed e-invoice allows both suppliers and buyers to communicate more easily. Suppliers can save time on generating and mailing paper invoices, which in turn leads to faster payments. Buyers can get their money sooner too, and avoid the additional bank fees and other expenses associated with late payments.
A payment processing link is often included in an e-invoice. When a customer clicks on the link, they are directed to a secure page on the credit card processor’s gateway where they can enter their payment details and complete the transaction. The user-friendly payment page typically displays all the information that is normally included on a printed invoice, including the purchase order number, item numbers, line items, amount due, terms of sale, tax rates, and more.
Some online invoicing systems even allow businesses to automate the billing process, meaning that recurring customers receive an electronic invoice each month without needing to request one. Some of these systems also let you customize the design of your branded invoices and make changes to line items, payment terms, discount codes, legal footers, and more.
The ability to send a payment link with an e-invoice can be particularly useful for B2B SaaS companies or professional services businesses that sell their goods and/or services through a variety of channels, such as events or fairs. These types of businesses often do not have a dedicated e-commerce website, but they do have an accounting software system and handle sales through other channels such as email or social media.
For both buyers and sellers, sending e-invoices with a payment processing link can significantly improve the overall experience. Getting paid on time and having a reliable delivery process can drive up satisfaction levels for both parties. This is especially true for businesses that offer high-value goods or services, such as construction or manufacturing. In these cases, buyers can be especially displeased if they are delayed in receiving their products or service or if there is a mix-up with the billing process. By leveraging online e-invoicing with a payment processing link, these issues can be avoided by keeping the communication between both parties simple and easy to manage.
Sending electronic invoices with a payment processing link for e-commerce transactions makes customers more likely to pay their bills on time. This allows businesses to reduce their DSO by shrinking the lag between billing and payment. It also cuts down on human error and allows suppliers to improve cash flow through faster invoicing and payments.
Whether it’s by email or through a secure customer portal, sending an e-invoice with a payment link is a quick, easy, and inexpensive process for both buyers and suppliers. For the supplier, it’s a way to eliminate printing and mailing costs and for buyers, it’s simply an alternative to paying by check or over the phone.
Suppliers can use an e-invoicing platform to quickly create and automatically send invoices using transactional data from their ERP or other accounting system. They can also use an e-invoicing network to connect with multiple buyers and vendors in one place. The latter approach is gaining momentum in many countries, including the United States, and it’s especially helpful for small businesses that might not have the technical resources to develop their own e-invoicing solution or to integrate with buyer systems.
In addition to cost savings for the supplier, e-invoicing reduces processing and handling costs for the buyer. This can include the costs of manually keying in invoices into an accounting system, responding to customer requests for copies of lost or damaged invoices, and the labour costs associated with chasing late payments. It can also help to cut down on banking fees and extra administration costs that can arise when mistakes are made in paying invoices.
Imagine you’re selling your artisan peanut butter at a local farmers’ market, and a customer shows up at the end of the day wanting to make a purchase but doesn’t have cash. With a payment link feature, you can easily generate a payment link for them, and they can then use it to securely pay on their phone or online with their credit or debit card. This is a powerful tool for any business that sells goods or services on-the-go.
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