Electronic invoicing - with the aid of an e-invoicing portal - transforms traditional paper invoicing to a digital alternative. This process of digitization simplifies the entire invoicing process, reduces risks, and eliminates costs:
- Bookkeeping systems automatically read the invoice data and match it against contracts and work orders;
- The system validates the invoice automatically and posts the payment;
- Electronic systems improve the visibility of the process since no paper will be sitting on a desk somewhere.
There are many challenges for the modern global enterprise when it comes to invoicing, and many businesses that deal with a high invoice volume are struggling to keep up with the global regulations and developments.
Getting rid of traditional paper invoicing
Traditional invoicing can be very time-consuming, error-prone, and expensive, and the manual processes are quite inefficient and labor-intensive. The best way to tackle these challenges is with an e-invoicing system.
Why? Because electronic invoicing systems can streamline and automate those manual, inefficient processes. They can deliver invoices quicker and cheaper while directly sending the invoice to the bookkeeping system of the recipient, ensuring not only that the invoice data is without human errors, but also that the invoice will be paid significantly faster.
After all, the manual processing tasks (downloading, printing, archiving, ticking over) will disappear completely.
And that's not all. An e invoicing system can also ensure consistency and compliance with various multi-jurisdiction regulations.
European governments, for example, have mandated the delivery of electronic invoices - UBL, Peppol BIS, Xrechnung, et cetera (no PDF!) - from their suppliers, where some even mandate the use of the Peppol E-invoicing Network. Is your invoicing process capable of integrating with that worldwide network?
Whether you have a company, work for a government agency, or provide a software service, an e invoicing system and / or portal is definitely something to consider.
Here are the 5 most beneficial reasons to consider switching to electronic invoices:
1. The Money-Saving Benefits of e invoicing
An e invoicing portal transforms your invoicing processes by automating and streamlining them. As the software will handle the entire process of sending and processing received invoices, your labor costs will significantly decrease as a consequence.
Does your company still use paper invoices? Then you likely experience a high amount of challenges such as human errors and rework. Not only do these mistakes cost you time and money, it also means that your invoices will get paid later than they actually should.
When using an e-invoicing system, however, most of these unforced errors will disappear entirely. That's because electronic invoicing allows bookkeeping systems to communicate with each other without the interference or necessity of human actions. The software simply does not put the wrong amount on the bill or adds an incorrect address on the shipping label.
When considering a large scale and longer period of time, the efficiencies gained by e-invoicing software eventually reduce costs significantly.
And not only that. You'll also have fewer sending costs by delivering your invoices through an e-invoicing system instead of paper. All the costs now spend on materials such as paper, envelopes, and ink can be saved and invested into other corporal projects.
The biggest objection that most companies have is the fear of a long transitioning time and large costs. But starting with an e invoicing software is relatively easy and the implementation can be executed very quickly.
Many customers begin to realize time and cost savings almost immediately after the implementation. Especially larger companies notice the substantial amount of reduced costs and the significant increase regarding the company its efficiency.
2. Your Invoices Get Paid A Lot Faster
As mentioned before, e-invoicing virtually eliminates all lead and lag time regarding invoice payments by fully eliminating shipping and / or excessive processing time.
In case that your company still uses paper invoices, your employees don't have to wait days for the post office to deliver your invoice to your customer. You don't need to wait days for the post office to send back your check. How many times have you heard the excuse, "the check is in the mail?"
Using an e invoicing portal will increase visibility into the transaction status with real-time updates. You'll know the minute the customer receives the invoice and the moment they post a payment.
An e invoicing portal speeds up the processing and approval time for your invoices because the system automates much of the process. The system has protocols and formats that customers require and sends your invoices accordingly.
Using our e invoicing portal to send invoices to customers connected to the Peppol network, you can expect customers to pay their invoices 16 days faster on average.
3. Complying with the European & Asian Invoicing Regulations
During the last few years, many European and Asian jurisdictions have implemented new requirements for how companies must structure invoices.
In 2014, for example, the European Parliament voted on the Directive 2014/55/EU on electronic invoicing in public procurement. This directive, which demands from all government supplier to deliver e-invoices to public entities, lays out the precise requirements for using a European electronic invoice standard.
In Asia, regulatory requirements vary depending on the country. Some countries have precise requirements while others have none. Taiwan, for example, has particular regulations for electronic invoices for foreign e-commerce. China, Japan, Korea, India, and Hong Kong all have different requirements.
It's a full-time job for global enterprises to stay on top of the latest regulations and ensure that their invoicing processes satisfy those requirements. You can no longer send the same invoice forms to all the countries you do business with. If you do business in many different countries, it's vital to comply with the various jurisdictions.
An e invoicing system takes care of all that work for you. Thanks to automatic invoice format conversion, you can be confident knowing that the system is structuring your invoices correctly for the specific jurisdiction you are sending them to.
You'll be able to send the correct invoice to your customers anywhere they are, including North America, South America, Europe, Africa, or Asia.
4. Connectivity to E-invoicing Networks Worldwide (including PEPPOL)
To substantially simplify the exchange of electronic business documents - especially on an international level - it is important to find an e-invoicing system that supports a global connectivity.
Luckily, more and more e-invoicing portals are connecting their software to worldwide networks such as PEPPOL
PEPPOL is an extremely safe invoicing network that is especially dominant in Europe, mainly because the European government has mandated the use of this network for government suppliers. But lately the network has also expanded its reach to Singapore, Australia and New-Zealand, with more countries following each year.
Peppol was designed on three pillars:
- The network
- The document specifications.
- The legal framework that defines governance.
Invoicing networks define the technical specifications required for compliant e invoicing portals to which they must adhere. These specifications enable a standards-based exchange of documents, including invoices.
Peppol's design is for both buyers and suppliers to be able to communicate effectively and electronically. That means that any supplier can easily invoice any buyer in the network, and any buyer can receive an invoice from a supplier in the network.
When evaluating e invoicing portals, make sure they connect to one or more of these worldwide networks like Peppol.
5. The Undeniable Safety of Using an E-invoicing Portal.
Sending invoices through the mail is inherently not secure, as mails can get stolen or lost easily. Many hands touch the mailing process, even when depending on the service rendered, the invoice may contain sensitive information.
Companies don't want sensitive data to be lost or mishandled, and the post office can't - and won't - guarantee secure delivery 100% of the time.
If not stored and handled correctly, paper invoices and payments can end up in the wrong hands after processing. For instance, someone might throw away the paper invoice instead of filing or shredding it, leaving sensitive data out in the open.
This problem can instantly be solved when using an e-invoicing solution, especially when used simultaneously with the secure PEPPOL network.
Since the system handles everything electronically, there is no longer a postal service or a middleman involved. There are no paper checks that can get lost, and electronic payments get made quickly and securely.
The best providers offer connectivity via API, SFTP, secure email, and more.
Connecting To An E-Invoicing System
The switch to electronic invoicing may seem overwhelming, but it surely is not. You can make the switch in as little as a day and start seeing cost reduction immediately.
You'll only need a few things: an email address, an accounting package that creates UBL invoices, a Storecove account, and a Peppol ID. We can help you with these.
- Are you ready to transform your invoicing practice from a manual, inefficient process to an automated and streamlined system that an e invoicing portal delivers?
- Are you ready to reduce invoice sending costs, eliminate waste, and reduce human errors?
- Are you ready to get paid up to 16 days faster, on average?
Storecove has helped tens of thousands of companies with electronic invoicing. We support companies, service providers, and government agencies with quicker and more efficient invoicing. We offer easy implementation, disruptive pricing, and global connectivity.
Once you become validated, you can use our API to connect with many worldwide electronic invoicing networks. We support every global format and make it easy to connect.
You can register as an individual company or as a software / service provider that operates on behalf of multiple senders and receivers.
We're here to help. Get started today for free. Or, contact us to schedule a brief video call to discuss your specific needs and pain points.
More Information About Connecting To An E-invoicing Portal?