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Electronic invoicing (e-invoicing) is the electronic exchange of an invoicing document between a supplier and a buyer. When sent and received in a structured electronic format, the invoice can be automatically processed without the need for traditional paperwork.
The popularity of e-invoicing is increasing across the world. According to the Billentis report “The E-Invoicing Journey 2019-2025”, the 2019 global e-invoicing and enablement market was valued at around EUR 4.5 billion (USD 4.9 billion). Projections suggest that this market is expected to grow significantly and reach approximately EUR 18 billion (USD 20.5 billion) by the year 2025. The volume of electronic invoices and receipts globally is expected to increase four times by 2035.
Businesses of all sizes are transitioning to e-invoicing because of the many benefits it offers. Let’s take a look at just a few.
Benefits
Increased efficiency and faster payment
As electronic invoices are transmitted and received in a structured data format, their processing can be automated. This means no manual data entry from accounts teams, which results in working capital optimisation and allows team members to focus more time on strategic, financial tasks.
Furthermore, automatic processing decreases the distribution time, which can result in faster payments. Electronic invoices arrive in seconds and automatic processing is instant, which overall accelerates the invoice to cash time.
Leading e-invoicing providers also include digital payment links or invoice payment QR codes to help businesses pay faster. Both the link and the QR code direct customers to a secure payment page where the customer chooses how they want to pay - such as PSD2 (open banking), credit card or even local payment methods.
More meaningful data
An electronic invoice’s structured data allows companies to utilise data analytics tools to gain insights that can benefit their business. Through the structured data, trends can be analysed and patterns identified which can lead to data-driven decisions to improve the financial performance of a business.
Security
E-invoices are encrypted and can be sent through distribution channels such as Peppol, adding an extra layer of security which helps remove the risk of interception or fraud.
The archiving of e-invoices also helps in the security process. Long gone are the days of filing cabinets, invoices saved on company servers or even unsecure desktops. Businesses have more peace of mind with the extra security that comes with electronic invoicing.
Leading e-invoicing providers will also provide automatic, secure archiving, often for the legal archival period required in each country.
Compliance with e-invoicing regulations
One major benefit of e-invoicing is the automatic compliance with country specific tax regulations.
Around the world, more and more tax authorities are mandating electronic invoicing. Some mandates cover business-to-government (B2G) invoicing, business-to-business (B2B) invoicing and even business-to-consumer (B2C) invoicing. Staying up to date with the various regulations is challenging, therefore it pays to work with an e-invoicing provider who can ensure invoicing compliance in each country. E-invoicing has a positive effect on tax compliance costs for businesses and often reduces the administrative burden involved in audits from tax authorities.
For example, Banqup Group meets tax compliance requirements in more than 60 countries and is regularly updated to meet new requirements. This provides businesses with a reliable partner that helps them stay always compliant.
Business and international opportunities
Using an e-invoicing provider makes international business that much easier. Electronic invoicing software converts business documents into any format required by the customer.
This allows for easier international business transactions, as no extra work is needed from the supplier or the customer.
Furthermore, leading e-invoicing providers can connect to international networks such as Peppol. This allows businesses to send cross-border invoices simply and securely, helping them to operate on an international scale.
Beiersdorf has transitioned to electronic invoicing on an international scale with the support of Banqup Group. This switch has enabled Beiersdorf to achieve greater efficiency and consistency in its invoicing processes across global operations. Take a look at the full details and the scale of Beiersdorf’s operations via our case study.
Next steps: choosing the right provider
So now you have been convinced of the benefits electronic invoicing provides, what are the next steps? Picking the right provider, of course.
Electronic invoicing with Banqup Group
Banqup Group has electronic invoicing solutions for businesses of all sizes.
Tax compliant in 60+ countries, Peppol access point and a member of GENA, our solutions are compatible with all existing ERP/accounting systems and an extensive list of 3rd party service providers.