Inbound and Outbound Invoices: What You Need To Know

Automated inbound and outbound billing systems are a growing trend in the international marketing arena. They are generally used to manage both inbound and outbound invoices. The primary difference between the two is that inbound invoices contain information about products or services while outbound invoices contain information about a person, company, product, or service.

Invoices sent out with inbound information are generally considered more appropriate for a company than an outbound one. Incoming invoices, however, are considered more appropriate for a company than an outbound one if the amount of work involved in sending out invoices, the time required to prepare the invoices properly, the cost of sending out invoices, the amount of money that would need to be invested on the sending of invoices, and the amount of time that would be required to send out invoices.

Reduction of Costs

One of the major advantages of using an automated inbound/outbound billing system in any business setting is the reduction in overhead costs. When a company uses inbound marketing automation, a large portion of its workforce is taken out of the direct sales area and placed in areas of management. With the reduction in salespeople, the amount of money that a company would need to invest in order to maintain a sales force of the number of employees it had previously had, is greatly reduced.

Reduction of Costs

Automating inbound freight transportation is also beneficial because of the decrease in truck traffic. When companies automate inbound freight transportation, they are able to reduce the amount of time that it takes for goods to be loaded into trucks. This allows businesses the ability to operate smoothly. The amount of fuel that companies would need to invest in their trucks and fleets is greatly reduced when these companies choose to automate inbound freight transportation. Additionally, when a company uses an automated system for inbound freight transportation, they are better equipped to react quickly to emergency situations.

Decrease in Liability

Another benefit of an automated inbound/outbound system is the decrease in liability that it inherently offers. When a company uses an automated system for inbound/outbound freight transportation, there is less chance that a driver will make an error. It is common for mistakes to occur, whether or not a driver is monitoring the system because human nature dictates that we make mistakes sometimes. Therefore, automating inbound freight transportation reduces the likelihood that mistakes will take place.

The logistics industry is perhaps best known for the products that they produce and transport. However, the recent boom in the online travel industry has created a new need for the product logistics industry as well.  Demand for efficient logistics providers has been created by the rise of:

  • e-tickets, 
  • automated check-ins, 
  • automated purchasing. 

E-tickets are electronic documents provided by online booking establishments that can be used to make purchases. Automated check-ins are electronic permits that can be used to facilitate the checkout process at a physical location.

The Popularity of Invoices

Automated invoicing is an online service provided by many hotels, doctors’ offices, and other businesses that allow customers to electronically pay their bills. Automated invoices can provide immediate answers to outstanding invoices and expedite collections. These services usually charge a fee to use the service. However, there are free online invoice services available.

An inbound invoice processing service will print out an inbound invoice. They will then mail the inbound invoice to the customer. Some companies also offer outbound invoice services, which send an email to the customer’s email address confirming the receipt of an inbound invoice. Outbound invoices send the customer a document that contains information about the invoice, as well as the company’s contact information. Most companies will bill the customer’s credit card directly.

The Difference Between Inbound and Outbound Invoices

The main difference between inbound and outbound invoices is that inbound ones contain information about products or services while outbound ones include information about a person, company, product, or service. Invoices sent with inbound information are generally considered more appropriate for companies than those containing outbound data.

In terms of benefits to using automated inbound billing systems vs. an automated system for sending out invoices with the use of your own business accounts: 

The Difference Between Inbound and Outbound Invoices
  1. Using an inbound invoice automatically offers you a tax deduction on all expenses related to international marketing including travel costs and shipping fees which can result in up to 30% savings from what you would normally have spent had these been from your personal account/s. 
  2. An inbound invoice will also allow you to avoid breaching anti-bribery laws in some countries, which can result in up to $100 million in fines and 20 years imprisonment. 
  3. It is more likely that a potential customer or client would be willing to work with your company if they receive an automated inbound invoice as opposed to the one containing outbound data. This makes it easier for them to trust you and establish business relationships.

Automated inbound and outbound receiving systems will save businesses money. They will also provide businesses with additional revenue and productivity, which in turn will help to grow the business. Barcode readers can aid in this process by reading barcodes and sending electronic or manual receipts to customers. Barcode readers can also process an inbound debit, forward a downstream transaction, or enter information about a customer for future transactions.

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