As technology advances and digitally savvy customers can access information at any day or time on any device from anywhere in the world, their demands will fundamentally evolve. Whether it’s demanding customized information through their preferred device and channel or the timing of their communication, it is essential for companies delivering business documents—like invoices—to proactively think about how to meet such expectations and provide the best customer experience. As a result, more and more companies are choosing to go digital, making document retrieval and management simple, easy, and accessible at any time. Going digital provides flexibility and simplicity for your customers and will become a critical competitive advantage for your business.
In the Zion Market Research Report, the global e-invoicing market is expected to generate around USD 20,529 million by 2026, at a CAGR of around 20.4% between 2019 and 2026. It was also determined that:
“The rising adoption of cloud-based services is the major factor driving the growth of the global e-invoicing market. Cloud computing plays a major role in solving inefficiency issues in organisations and boosting sustainable business growth. Moreover, redundant procedural, administrative, software, and hardware costs of organisations are also avoided by using cloud computing. The Internet has permitted the formation of web forms and web invoicing so that the electronic invoice data can be entered online. This has led to the wider adoption of e-invoicing. Furthermore, increasing government initiatives for e-invoicing is further anticipated to strengthen the global e-invoicing market growth over the forecast time period.”
The transition to digital invoicing involves moving from traditional paper-based invoices to electronic invoices (e-invoices). This shift is facilitated by digital technologies that automate the process of creating, sending, receiving, and processing invoices. Here are the key aspects and benefits of this transition for businesses:
The benefits of digital invoicing
Cost savings:
- Reduced Paper and Postage Costs: Eliminates the need for printing, mailing, and physical storage of paper invoices.
- Lower Processing Costs: Automation reduces the labor costs associated with manual data entry and error correction.
Increased efficiency:
- Faster Processing: E-invoices can be delivered and processed faster than paper invoices, speeding up the invoicing cycle.
- Automated Workflows: Streamlined processes reduce administrative overhead and free up staff for more value-added tasks.
Improved cash flow:
- Quicker Payments: Faster invoice delivery and processing lead to speedier approval and payment cycles, improving cash flow.
- Enhanced Tracking: Digital systems provide better visibility into invoice status, allowing businesses to track payments more effectively.
Enhanced accuracy:
- Reduced Errors: Automation minimizes the risk of human errors in data entry and processing.
- Consistent Formatting: Standardized electronic formats reduce discrepancies and misunderstandings.
Better compliance and security:
- Regulatory Compliance: E-invoicing solutions often include features to ensure compliance with tax laws and regulations.
- Data Security: Digital invoices can be encrypted and securely transmitted, reducing the risk of fraud and data breaches.
Environmental benefits:
- Reduced Paper Usage: Digital invoicing reduces paper consumption, contributing to environmental sustainability.
- Lower Carbon Footprint: Reducing the need for physical mail delivery helps lower the overall carbon footprint of the invoicing process.
Improved record keeping and reporting:
- Easy Access and Retrieval: Digital storage makes organizing and retrieving invoices easier for auditing and reporting purposes.
- Enhanced Analytics: Electronic data can be easily analyzed to gain insights into financial performance and business operations.
Companies must embrace digital transformation and process automation as the new standard and determine the best blueprint for their business. As businesses adopt e-invoicing and require that their suppliers send invoices electronically, it will create a network effect with buyers and suppliers realizing the benefits of e-invoicing. These benefits include reduced costs and errors, faster payments, and streamlined processes. In the end, e-invoicing is nearly identical to traditional paper invoicing as it contains critical information such as customer invoice number, shipping or service address, goods sold or service rendered, price, quantity, PO details, payment information, dates of the transaction, and supplier information.
Business leaders and CEOs agree that customer experience is vital to growing their businesses. The transition to digital invoicing provides significant advantages in terms of cost savings, efficiency, accuracy, compliance, security, and environmental impact, making it a valuable move for modern businesses. As the pressure increases for the need to offer communication preferences for your customers and adhere to global regulations around e-invoicing, Quadient Impress helps organizations automate, secure, and centralize their document creation and delivery process to evolve and scale their business.
To learn more about digital invoicing, watch this specially recorded session on ‘A practical approach to omnichannel invoicing’.
