Invoices have always been a vital accounting tool in the business world, documenting and tracking transactions between buyers and sellers. From written records, invoices have since evolved in tandem with technological advancements, meeting the needs of the growing economy, revolutionising the ways businesses manage financial records and payments.
The First Recorded Invoice
Dating back thousands of years ago, in 3,000 BCE in Mesopotamia, modern-day Iraq. Businessmen used clay tablets to carve IOUs, detailing transactions of goods sold, from quantities and prices to credit terms.
Record of a £36 down payment made by Philip I of Castile for a painting of ’The Last Judgment’.
In modern history (during the 1500s), it was claimed that Dutch artist, Hieronymus Bosch, created the first written invoice for the sale of his painting, ‘The Last Judgment’ to King Philip of Castile.
By the late 18th century, there was an increasing demand for detailed invoices to cater to the growing number of businesses; resulting in a more structured and systematic format that includes the details of the buyers, sellers, date, the name of the goods, quantities, prices, etc.
A bookkeeping machine made in the 1900s uses QWERTY keyboard
As technology advances, the invention of bookkeeping machines drastically changes how invoices work. By adding machines with built-in typewriters, employees were able to calculate the invoices easily, before typing them down into a formatted document. Despite that, many small businesses continue to rely on manual invoicing methods as these machines are often built-to-order, which can be costly.
Electronic Data Interchange (EDI)
The first EDI system was introduced in the 1960s. The system allows companies to connect with their partners and clients, facilitating the transfer of documents and invoices, and reducing the amount of paperwork and time type in the data.
Since the birth of the Internet, many businesses have adopted and changed the ways they have been invoicing. Businesses are able to send invoices for clients’ approval through EDI files, before officially issuing them. With EDI, it enables businesses to search up their entire invoicing history or any specific invoices they are looking for. From the technology industry to retail, the EDI system has been widely adopted across various industries for its efficiency and flexibility. Walmart and FedEx are companies that have benefitted greatly from the system.
Modern Day Invoicing
The introduction of Enterprise Resource Planning (ERP) has revolutionised how businesses integrate their invoicing system seamlessly across various systems such as financial management, customer relationship management, and supply chain management. Some of the popular ERP providers today are Microsoft Dynamics, SAP, and Oracle NetSuite.
With ERP solutions, businesses can automate and streamline their entire invoicing process in real-time, drastically reducing the potential of human errors and time-consuming manual tasks, ensuring that invoices are able to be processed and paid efficiently. It has since become an indispensable tool for companies around the world to stay competitive in this digital economy. Companies such as Amazon, Apple, and Coca-Cola are using the ERP system and have benefitted greatly from it!
The Future is Here!
Bid goodbye to the time-consuming process, high cost of invoicing, duplicates of payments, and delays in payment approvals.
Introducing InvoiceNow, a nationwide E-Invoicing network that enables companies of all sizes to process invoices more efficiently, reducing business costs and shortening payment cycle! InvoiceNow operates on the open standard Peppol framework, which directly transmits E-Invoices in a standard digital format across different ERP / Finance systems.
The introduction of InvoiceNow will help both Small and Medium Enterprises (SMEs) and Large Enterprises enjoy smoother Invoicing, faster digital payments, and a better way to save the environment. What’s best is – businesses may not have to change their existing accounting or finance system to use InvoiceNow!
The Insight Partners, reported that the E-Invoicing market size is projected to reach $62.68 billion globally by 2031.
As the global market continues to evolve, businesses that have already embraced the adoption of digital solutions such as E-Invoicing will be able to thrive. Read success stories from notable companies such as Konica Minolta or even Fujifilm here.
Let’s Talk InvoiceNow
We’d love to hear your thoughts! Have you transitioned to E-Invoicing yet? Share your experiences in the comments below, and don't forget to share this post with your network!
If you're interested in learning more about how InvoiceNow works and its benefits, check out our other articles such as ‘Everything Your Business Should Know About InvoiceNow’, and ‘Share Your Thoughts With IRAS About The Upcoming Invoice Transmission’.
Reach out to us today at sales@zetta-solution.com to kick-start your business’s E-Invoicing journey today!
Image Source: Freepik, Sufio, National Museum of American History, IMDA
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