Following the traditional approach of billing for goods and services rendered is done by issuing a paper invoice, which represents the transaction of trade between customers and their suppliers. The advent of digital technology has made it possible for even a classical paper invoice to be now sent electronically over the web.
When a business company adopts electronic invoicing in its operation, it will definitely shift its business mechanics into every aspect of its transactions electronically, primarily, because the process saves money and time and, at the same time, provides a better and efficient service to the customers. So there is order even in transaction transmissions, when it comes to electronic invoicing, the process uses encoding guidelines which are taken from the Electronic Data Interchange, a standard that is predominantly used. Aside from the standards used, the layout of an e-invoice is electronically arranged using the XML or UBL message format. For a company to operate and process electronic invoicing, it could provide its own staff to handle this or it could save money by outsourcing from software companies that are on this form of service, such as receiving the data transaction and automatically checking that everything is in order and providing an operator to deliver the e-invoice via e-mail to the rightful customer through a link which will be provided for. There are also other options for a customer to choose where the e-invoice can be sent and that is by electronic transmission into the customer’s sales invoice system or the invoice is still sent electronically but a hard copy, at the same time, will also be sent. A more convenient venue for sending electronic invoice, nowadays, with the appropriate apps, is through the mobile phones.
Not to be confused, while electronic invoice may be considered an online invoice, the differences between the two lies in the platforms used where the online invoice is cloud-based while the electronic invoice is based on the Electronic Data Interchange format. Additional difference of the electronic invoice from the online invoice is the reflection of the signature from the creator of the invoice, as well as the time and date of transmission. Furthermore, no additional alterations on the invoice can be done with after it has been sent online to the customer. With all these possibilities, this is due to the increasing recognition of electronic invoicing by consumers and, thus, enables more companies to automate their invoice procedures and, with the aid of the right software, can even integrate other areas of their business systems to rake in revenue generating opportunities, as well as business efficiency.