E-invoicing is adopted by many enterprises to simplify and speed up the invoicing process and bring funds back into the business faster. Manual, paper-based invoicing is time-consuming, can be error-prone and places a strain on limited resources.
This can be most keenly felt by small and medium-sized companies but it’s a drain on public sector departments too. So much so, that the United States Treasury has reportedly estimated e-invoicing could help cut costs by 50% and save $450 million a year.
Worldwide, e-invoicing is on the rise with one estimate putting the global e-invoice and enablement market worth at 16.1 billion euros by 2024. Latin America is a proponent of the approach, as are many countries in Europe. E-invoicing in Europe especially is becoming increasingly widespread, driven by both regulatory initiatives and the desire for increased efficiency in business processes. However, specific regulations and practices can vary from country to country within Europe.
The European Union (EU) has been actively promoting e-invoicing as part of its efforts to create a Digital Single Market. The European Directive 2014/55/EU, for example, sets the standard for electronic invoicing in public procurement. The goal is to make e-invoicing the standard for public procurement across the EU member states.
Several countries in Europe have also implemented or are in the process of implementing their own e-invoicing regulations. Some countries may have specific requirements or standards that businesses must follow when sending or receiving electronic invoices.
It's essential to check the specific regulations and requirements of the country in which you are operating or conducting business. These regulations can change, and new initiatives may have been introduced since my last update. Additionally, the adoption and implementation of e-invoicing can vary, and some countries may be more advanced in their adoption than others.
Gain a competitive edge
New government mandates mean mandatory change for some, but businesses not currently impacted would nevertheless be wise to consider making the move to digital. Government-led initiatives pave the way for wider change, by getting on board now companies will be prepared as e-invoicing becomes standard.
What’s more, is that companies that work with suppliers that do invoice the public sector may find those companies want to use the same digital system for all their business.
Whatever the drive to make the transition, companies that do, can gain a competitive edge through the twin benefits of shortening payment times and improving operational efficiency. This can free up staff time to devote to activities that add value to the business.
See improvements in productivity, efficiency and cost reduction
Digitizing invoicing end-to-end streamlines invoice creation and distribution to:
- Increase productivity for finance and procurement teams with a digital record of invoices sent and received, status and notifications when action is required. For accounting teams, this can mean time saved that would have been spent following up on other matters.
- Increase efficiency as incoming and outgoing digital invoice management minimizes manual data re-entry into systems. The time that would have been spent printing invoices and preparing them for mailing can be spent doing more important tasks.
- Reduce costs because every stage of the invoicing process incurs a cost. Some of these are easily calculated, such as the cost of mailing printed invoices, while others are associated with the cost of staff time. By minimizing the stages involved in invoice management, and cutting time spent on invoicing, considerable cost savings can be made.
If you need help getting started or the best recommendations for your business, get in touch with us here. We want to help you get set up with e-invoicing and ensure your process is as efficient as possible from day one.
