BUSINESSES may be wasting hundreds of pounds by ignoring the potential of electronic invoicing.

Business Link Berkshire and Wiltshire believes small and medium sized businesses are losing valuable time and money through archaic office systems.

It says a fear of the unknown and reluctance to modernise is leading to missed opportunities and unnecessary overheads.

In Swindon hundreds of pounds could be saved every year through electronic invoicing and other online services.

However, despite almost 90 per cent of businesses having internet access, only one in three actually uses the internet to send out invoices and process payments

There are many advantages to e-invoicing, particularly for SMEs where cost-cutting initiatives and prompt payment can be essential. These include:

l Reduced costs in issuing the invoice, as there are no postage, packaging or printing overheads.

l Less time spent issuing the invoice as this can be sent by email and doesn't need to be signed, stuffed and stamped.

l Less space needed for storing paper versions as back copies can be kept on a hard drive.

l Quicker payment times as the invoice is received immediately and payment can be made online.

l Increased reliability as there is no need to rely on postage for delivery

Colin Lee, e-business adviser at Business Link Berkshire and Wiltshire said: "There is a reluctance to switch to e-invoicing and virtual systems, mainly due to concerns regarding fraud and compromised security.

Nevertheless, with the right advice and support, electronic invoicing can simplify your business and save you money."

Morris Owen, a medium-sized accountancy firm with offices in Devizes Road, Swindon and Cirencester, runs a virtual accounts office service and offers account management solutions for small business.

Partner Rob Harman said: "There is a perception that outsourcing the accounts side of a business is going to increase invoicing costs, however, money can actually be saved due to decreased overheads."

Morris Owen tailors the online system for individual businesses, taking into account holidays and sickness amongst other particulars, and provide both the system and a stand alone management service.

This information management ensures not only integrity of data but also that the system is fully compliant with the Inland Revenue regulations.

For information and access to experts on all issues relating to running or setting up a business contact Business Link Berkshire and Wiltshire on 0845 600 4141.