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An invoicing API allows companies to create, send, manage, and reconcile invoices, as well as track related payments end to end. In lieu of handling invoices across different software tools, companies managing a high volume of invoices can automate these workflows with a dedicated API.
For example, suppose you run Total Shipping, a growing transportation company with services across the US. Your finance and operations teams often struggle to create and send invoices, as well as track payments, because they currently manage the process across multiple systems. Ultimately, in order to continue scaling, these teams need the ability to track every invoice-related payment from bank statement to reconciled invoice in a single place. An invoicing API can help Total Shipping keep up with their growing invoice count.
Fortune 1000 companies—and other larger businesses that send and receive a high volume of invoices from other businesses—would benefit from an invoicing API. Online marketplaces, as well as industries like transportation, supply chain, and logistics, as well as service providers and large scale retail/ecommerce require a programmatic way to manage invoices and corresponding payments.
How does an Invoicing API work?
An invoicing API should serve an organization comprehensively, meaning coverage for both accounts receivable (sending invoices and getting paid), and accounts payable (managing incoming invoices and paying out).
Companies like Total Shipping require the following abilities:
For Accounts Receivable (AR)
- To generate invoices
- To match payments received against existing invoices
- Generate reporting
For Accounts Payable
- To manage incoming invoices
- To match outgoing payments to existing invoices
- Generate reporting
This documentation provides an example of how a company leveraging an invoicing API might create a counterparty, draft an invoice, and share an invoice with the counterparty.
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