Maximising Efficiency with Electronic Invoice: Key Benefits for Businesses

What is an Electronic Invoice?

As highlighted above, an electronic invoice is a digital document that is issued, sent, received, and stored electronically. As part of the accounts receivable and accounts payable processes, modern e-invoicing solutions typically include features such as:

• Invoice number - a unique identifier used for tracking and referencing.
• Invoice date - the specific date the e-invoice was issued.
• Buyer information - information about the customer’s name, billing address, contact details, and tax ID/VAT number.
• Seller information - information about the service provider, contact details, address, and tax ID/VAT number.
• List of goods/services - information about the product or service, quantity, unit price, and total price listed in a digital invoice format.
• Subtotal - total price before discounts and tax.
• Applicable taxes - this can include Goods and Services Tax (GST), VAT, sales tax, and any other local taxes that apply.
• Discounts - details about any applied discounts.
• Total amount due - the full amount the buyer is required to pay.
• Payment terms - the due date and information about payment methods and late fees (if applicable).
• Payment details - may include the accounts payable number, digital e-wallet, or payment link.

Typically, electronic format invoices are sent as a structured file (such as an XML format or JSON), while electronic data interchange (EDI) also allows for automatic invoice data sharing. On the other hand, scanned paper invoices are just images, PDF files, or Word documents, so manual input is still required. 

As an e-invoice can be sent from the seller to the buyer digitally, it can be received and processed automatically using accounting software, thus enabling fewer errors, better tracking, and faster approvals.

Nowadays, many countries and jurisdictions legally require businesses to use electronic invoice processing and accounting systems instead of paper invoices for audit and tax purposes.

Benefits of Electronic Invoicing

For every kind of business, whether established or emerging, large or small, electronic invoicing comes with a whole host of benefits. Here’s a breakdown of some of the clear advantages over using traditional scanned paper invoices.

Cost Saving

Firstly, using e-invoices leads to significant cost savings for businesses. There is no need to print, mail, or physically store invoices, cutting costs related to:

• Paper
• Ink
• Envelopes
• Postage
• Filing and accounting systems

It also reduces admin work, as there is no need for scanning or manual filing, and there are fewer data entry tasks. E-invoices are especially beneficial for businesses handling a large volume of invoices.

Increased Efficiency

Another benefit of e-invoicing is that it shortens the time between issuing an invoice and receiving payment. There is no need to worry about delays caused by postal services or manual processing, which helps streamline the accounts receivable process.

For the accounts payable process, e-invoicing enables automated approval workflows, allowing invoices to be routed directly to the appropriate system or person for review and payment.

Improved Cash Flow

You are also able to improve their “cash on hand”, given that faster (and less complex) invoicing naturally leads to faster payments from customers and clients. With predictable payment cycles, it is easier for businesses to manage day-to-day expenses and plan future growth.

Some electronic invoicing systems also offer automated reminders, helping you minimise late payments and avoid the need for awkward follow-ups that are often associated with paper invoices. What’s more, businesses may find it easier to qualify for financing, as consistent e-invoicing practices provide a clearer record of stable receivables.

From the accounts payable side, electronic invoicing systems also allow you to schedule outgoing payments and ensure timely payments. This gives you full visibility into when cash is leaving your business—crucial for predicting whether you have enough funds to cover operational expenses.

In short, e-invoicing reduces the risk of liquidity issues that often stem from delayed or overlooked invoices.

Reduced Risk of Errors

E-invoices eliminate the need for manual entry. As digital invoices are generated from integrated rather than unstructured invoice data, there are fewer mistakes when it comes to totals, client details, and tax calculations. Because e-invoicing platforms support structured data formats, there are also fewer formatting and arithmetic errors.

When businesses spend less time fixing or dealing with human errors in the creation of invoices, they can concentrate on other aspects, such as generating new clients and leads.

Easier Tracking

Electronic invoices make life easier for businesses in a multitude of ways, including tracking. E-invoicing platforms allow businesses to check invoice statuses in clear visual formats, including information such as:

• Sent
• Viewed
• Paid
• Overdue

How to Create an Electronic Invoice

Here is how you can create an electronic invoice for your business.

First, you should choose a reliable invoicing platform or accounting software to create your electronic invoice. These platforms include solutions like Aspire, Xero, or QuickBooks, and they help ensure that your invoices are properly formatted and legally compliant. When creating an invoice, make sure to include essential information such as invoice number, issue and due dates, itemised goods or services provided, and the total amount payable.

Once complete, you can send these invoices directly to your clients’ email addresses or integrate them into your clients’ accounting systems via API or electronic data interchange (EDI), depending on the level of automation required.

E-Invoice Best Practices

To make the most of e-invoicing, businesses should follow a few best practices to ensure professionalism, accuracy, and efficiency.

• Communicate with your clients in advance: Always inform your clients ahead of time that you will be switching to electronic invoices. This helps avoid confusion and ensures a smoother transition.
• Use a consistent and professional format: Maintain a standardised format for all your e-invoices. A clean, structured design not only reflects your brand’s professionalism but also makes it easier to track and manage invoices across clients and systems.
• Double-check all invoice details before sending: Ensure that all invoice data is accurate, including recipient details, account information, due dates, and item descriptions. Verifying this information beforehand reduces the risk of payment delays or disputes.

The Future of Electronic Invoice Systems

As mentioned in the introduction to this guide, the global e-invoicing market is projected to surpass USD 68 billion by the year 2033. More and more countries around the world are also introducing laws that make e-invoicing compulsory, with an eye on greater transparency and tax evasion prevention.

Going forward, payable automation will be even greater, with tools like AI offering more intelligent automation and less manual work. At Aspire, we already include many forward-thinking features (with more to come), putting our clients ahead of the curve.

How Aspire Can Streamline Your Invoice Management

The first step in electronic invoice processing is choosing a reliable platform—and Aspire can be the ideal solution for your business. Aspire’s Business Account comes equipped with both Accounts Receivable and Accounts Payable management features, enabling you to streamline your entire invoicing process.

On the accounts receivable side, Aspire allows you to create customised, tax-compliant invoices that reflect your brand. These invoices can be generated and sent in just a few clicks. You can also set automated payment reminders to encourage faster client payments, helping you maintain a steady cash flow.

You’ll be able to monitor your cash flow at a glance—clearly seeing which invoices are paid, pending, or overdue. Aspire also syncs seamlessly with major accounting software, enabling faster book closure and reducing the risk of manual errors.

On the accounts payable side, Aspire lets you upload thousands of invoices, customise approval workflows, and automate payments. You can schedule bulk payments based on invoice due dates, ensuring timely payments and helping you optimise your cash flow with ease.

Frequently Asked Questions

What makes an e-invoicing system better than traditional invoicing?

In simple terms, e-invoicing is faster, less prone to errors, and more cost-effective than traditional paper invoicing. Platforms like ours enable businesses to save time and money with e-invoicing.

Is electronic invoicing secure?

Yes, e-invoicing is secure. We use encryption, bank-grade security, and verified data formats to keep all electronic information safe.

Can I send e-invoice formats to international clients with Aspire?

Absolutely. At Aspire, we make it easy for businesses to send invoices in multiple currencies as well as accept Global Payments.

Will e-invoicing solutions integrate with my accounting software?

Yes. Aspire easily connects with popular accounting software, which means that all of your invoices and payments sync automatically.

Does the accounts payable department need special training to use electronic invoicing software?

No special training is needed to use Aspire's invoicing system. We have designed our platform to be both simple and intuitive, with a streamlined invoice process, digital document processing, and various key functions to simplify the process.

How does a digital signature work on digital invoices?

Unlike signatures on standard invoices (such as Word formats or PDF format), a digital signature is an encrypted key that adds user confirmation and a timestamp to invoice information. Digital invoices with encrypted signatures provide extra security when you exchange e-invoices.

What is a structured data format for an invoice?

Structured data is easily readable invoice information such as line items and payment amounts/dates. An invoicing system can easily read and process data in a structured form. Unstructured data is more problematic and includes logos, descriptions, and additional text.