Globalization and the digital age have transformed the way that companies need to do business. In order to stay competitive, it is essential to constantly seek to improve operational efficiency and streamline processes.
Another important element is to ensure compliance with ever-evolving international regulatory requirements. Both of these factors can be addressed with the use of electronic invoicing, which works to revolutionize the way the invoicing process is handled.
If your business hasn’t yet adopted electronic invoicing, then consider these benefits in efficiency and e-invoicing compliance that you are missing out on.
Cost reductions
One of the most obvious benefits from adopting e-invoicing is its ability to reduce costs compared to paper-based invoices. Printing, mailing and storing physical documents all incur expenses, especially if your business is dealing with a large number of invoices month on month. Physical storage in particular is often a major cost, in terms of actual space as well as financially.
All those associated costs are eliminated with the use of e-invoicing, with everything conducted and stored electronically. The only real costs involved are the software itself and the server equipment.
Another cost that e-invoicing reduces is the manpower cost associated with each invoice. As e-invoicing allows for automation this removes a significant amount of work from the shoulders of staff, who can turn their regained time towards more productive tasks.
Improved accuracy
Manual data entry is one of the most common sources of errors within business. Anyone can make a simple typo, but if these aren’t caught and corrected then this has the potential to lead to some major costs down the line as well as discrepancies, delays or disputes.
E-invoicing removes the need for manual data entry, with invoices automatically processed into the system and validated. This ensures that information is entered accurately and consistently, significantly reducing the likelihood of errors or the need for manual correction.
Altogether, this makes for a far smoother invoicing process and more reliable payments. With less time needed for double-checking data entries, the entire process becomes more efficient.
Timelier turnarounds and payments
With e-invoicing accelerating the speed of the invoicing process, turnaround times will naturally reduce. This is a positive both for your business and its suppliers, as a smoother invoicing process leads to steadier cash flow and stronger financial management.
Electronic invoices are created, transmitted and processed far faster, leading to less delays and prompter payments overall. When there is less waiting around on invoices to be processed and payments to arrive the health of a business’s cash flow should improve.
Standardization
Utilizing e-invoicing software promotes greater standardization and uniformity within the invoicing process. Consistency is always something to strive for in business, so make sure that your invoices deliver that same level of consistent quality.
This is particularly useful for companies trading internationally, as different countries require different formats and protocols. E-invoicing platforms that offer compliance support will ensure that all invoices are correctly standardized to meet the legal requirements of that particular market.
Audit trails
Part of meeting e-invoicing compliance standards is providing a comprehensive audit trail. Financial transparency is all the more important when trading across international lines, which is why many countries now mandate the use of e-invoices.
In order to stay on the right side of regulators, utilizing e-invoicing software ensures that every step of the invoicing process is properly recorded and the data remains easily accessible. Maintaining a proper, auditable paper trail is important for any business.
E-invoicing doesn’t just help businesses comply with international invoicing standards and expand their operations to new markets. It also delivers efficiency improvements within the finance department and streamlines processes to free up the valuable time of skilled staff.
