Why e-Invoice?

There’s compelling evidence that eInvoicing saves money for your company. Research suggests that a paper-based invoice costs around 30 euro compared to less than 5 euro to process an electronic invoice. In addition, cost savings are matched by revenue generating and cash flow potential. A growing number of governments are compelling suppliers to use eInvoicing when invoicing their public sectors. This will be a major driver of e-invoicing adoption in the near term.

Companies worldwide are seeking to address competitive pressures with cost efficiencies and improved visibility into their financial performance. Back-office functions are areas in which significant cost efficiencies can be achieved through automation of routine, administrative tasks. Many organisations have streamlined and digitised functions like procurement but fewer have optimised accounts payable. Some are centralising accounting functions into payment factories, others are transferring invoice processing offshore or outsourcing to a third party to save money.

Centralisation and outsourcing can yield cost reductions, but the maximum efficiencies can only be achieved through business process re-engineering and automation. Removing paper from invoicing processes is a critical step to achieve true efficiencies. Research studies performed by Aberdeen and IOMA Research reveal that more than two thirds of the companies surveyed receive more than 80 percent of their invoices on paper via postal mail.

A key catalyst for the resurgence in e-invoicing has been regulations which allow corporations to replace paper invoices legally with electronic equivalents as the basis for taxation and commercial activities. These new regulations emerged in Europe starting in 2001, but similar frameworks have been introduced in Asia and Latin America since. The ability to eliminate paper invoices from the financial supply chain can create significant cost-saving opportunities for buyers and suppliers. It is estimated that over 200bn euros can be saved from eInvoicing throughout Europe alone

Here are five of the key reasons why, if you have not already done so, you should be introducing eInvoicing into your organisation:

Overcome the Challenges of Paper Invoices

There is so much time, effort and cost involved in the paper-based invoicing process, it is surprising that so many organisation have yet to optimise their accounts payable functions. Learn More »

Improving process automation

The major saving in eInvoicing isn’t achieved through reducing printing or postage usage, it is implementing efficient processes and integrating them into your business. Learn More »

Improving cash management

In tougher economic conditions, cost saving is only one weapon in your armoury. An equally effective approach can be focusing on cash management. Learn More »

EU Directive and other compliance issues

The European Union is at the forefront of driving the widespread adoption of eInvoicing. Other territories are not far behind. Learn More »

Green Initiatives

Each year, 12 million trees are cut down to accommodate paper-based invoices in Europe alone. Electronic invoicing can make a significant impact on your sustainability strategy. Learn More »

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