As discussed in the first part of this article, electronic invoicing can be as simple as simply emailing a PDF version of the traditional accounts paperwork to a customer. However, this reliance on email comes with a risk that the invoice may be lost or delayed. This time we look at how Dumping Double Entry benefits your customer, and therefore you too.
How it usually works
Although the concept of buying and selling is simple, the paperwork associated with the process tends to be more complex than expected. A customer sends a purchase order when they want to buy a product from your business. Your company delivers the item and an invoice to the customer. Somewhere along the line, the invoice is paid and everyone is happy. Except it never quite seems to work like that.
The order is manually entered onto your system upon receipt of the purchase order, and an invoice is also created manually when the goods are despatched. When the invoice is received, your customer must then manually enter the details into their accounts system, whether you send a paper copy or a PDF attachment. All the information in the entire purchase process is entered twice – once into your customer’s accounts system and once into yours.
This duplication of data entry leaves plenty of room for human error. The accounts clerk at your customer’s business accidentally enters the wrong line item total when processing your invoice and suddenly everyone is chasing everyone else to identify where the problem occurred. All the while, the outstanding invoice remains unpaid.
How it could work
Celtrino’s Smart Admin platform prevents this issue from ever occurring because all the data is only ever entered once. Your client submits their purchase order from their accounts system to Smart Admin, which converts the data and enters it directly into your accounts system. You in return submit an invoice directly from your accounts system via Smart Admin and it is entered automatically into theirs.
Because the invoicing data is correct at the point of entry and manual intervention minimised, there should be no more need for chasing up invoices because the details have been transcribed incorrectly. You and your customer therefore both save time and money. And no chasing up, means shorter delays to payment.