There’s compelling evidence that e-Invoicing 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 e-Invoicing 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. This is the part where getsix® comes into the game.
Centralisation and outsourcing 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.
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. The ability to eliminate paper invoices from the financial supply chain can create significant cost-saving opportunities for buyers and suppliers.
Here are five of the key reasons why, if you have not already done so, you should be introducing e-Invoicing 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.
- Improving process automation – The major saving in e-Invoicing isn’t achieved through reducing printing or postage usage, it is implementing efficient processes and integrating them into your business.
- 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.
- EU Directive and other compliance issues – The European Union is at the forefront of driving the widespread adoption of e-Invoicing. Other territories are not far behind.
- 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.
Need any help?
One of our e-Invoicing experts would be happy to answer any questions you have.