Some of the most valuable resources in a business are time and effort. Having that said, did you know that your businesses can become a lot more efficient when using an e-invoicing solution?
Almost all businesses need to invoice someone for something. And recently the government suppliers have been mandated to strictly send e-invoices when submitting invoices to the government.
In this article, you'll read everything about why you should use an e-invoicing solution for government suppliers.
Looking for an e-invoicing solution? You can register here for free.
What is an E-Invoice?
An e-invoice is an invoice that is issued, transmitted and received in a completely electronic format. To completely understand what an e-invoice is, we must also understand what an invoice is.
An invoice is a way to confirm to customers that a service was performed, or a product has shipped and now they owe money.
In recent years, e-invoicing has almost completely replaced the traditional paper invoice that was once the industry standard. E-Invoicing can be a huge time saver for businesses who rely on it for processing accounts payable.
E-Invoice vs. Paper Invoice
E-Invoices are no different than paper invoices. They both include the same information such as the customer’s invoicing and shipping address, services performed or products sold, pricing, quantities, description, invoice number, etc.
Everything is still there, the only thing that has changed is the form, rather than physical it is online or even cloud-based. There are many ways to benefit from using a digital invoicing solution within in your business.
Benefits of E-Invoicing
1. Saves Time
Time is an essential resource in any business and using e-invoicing cuts out a number of unnecessary steps that tend to eat up major time.
Both you and your client will be saving time with an e-invoicing solution.
2. Reduces Cost
E-Invoicing is completely paperless, which means you’ll no longer have to pay for paper or postal fees.
Since your staff won’t be consumed with using templates or emailing PDFs, you save working time.
Your employees will be able to use their time more efficiently on other value-adding tasks. Time is money after all.
3. Fewer Mistakes
Increasing automation and reducing manual input means there is less room for human errors such as typos. And you’ll never have to worry about your invoice being lost in the mail.
4. Better Customer Service
It’s typically more convenient for your clients to get an e-invoice to the platform of their choice rather than a traditional invoice. Receiving an e-invoice compared to a traditional invoice can save processing costs.
When delivery time is shorter, the client has ample time to take advantage of any early payment discounts.
5. Faster Payment
An e-invoice can be sent to a client in almost no time at all. Since it requires much less time and effort to pay an e-invoice, the client will likely send payment much sooner than with a traditional invoice.
6. More Eco Friendly
E-Invoicing means there’s no need to use paper and waste resources. Why not save the planet in the process?
7. Easier to Track
An E-Invoicing Solution gives you the power to know when an invoice has been sent, viewed, and paid. Depending on your specific solution, you may even be able to see when the client has viewed the invoice.
8. Insights on Invoicing
Utilizing online e-invoicing solutions ensures that all documents will be saved on one platform which means it is accessible from almost anywhere.
Having all of these documents stored on the same platform allows you to get an overview of your invoicing through automated reports and analytics.
9. Globally Accepted
All public sector entities in EU-countries need to be able to receive e-invoices from their suppliers. The e-invoices must comply with the European standard.
Mexico and Brazil also have laws requiring that sales be documented through e-invoices. The U.S government has also mandated that its bureaus use e-invoicing.
E-Invoicing has become a globally accepted, and in many cases demanded form of documenting sales transactions.
Regardless of how your business operates, e-invoicing software has many options that make it customizable to your process.
If you still prefer to use spreadsheets for invoicing, that capability can be added with different templates. You can still update your invoice without changing your process.
11. Data Integrity
A completely digital invoice means that the chance for fraudulent bills is greatly reduced. The authenticity of an e-invoice can be validated automatically which reduces risk for both parties.
12. Industry Standard
E-Invoicing has already become the default for almost everyone, especially in the B2B world.
It would be beneficial to start e-invoicing now as it is bound to become mandatory for most businesses fairly soon.
Clients will start to demand it and some companies may even start refusing to accept any other form of an invoice.
Why is E-Invoicing Important for Government Suppliers?
At the end of the fiscal year 2018, the U.S. government mandated that all invoices would have to be electronic. At that time the government processed over 19 million invoices per year and 12 million or 40 percent of them were received in the form of paper.
This means that a number of suppliers will need to adapt to these changes and implement e-invoicing software into their processes.
If your business is internationally active or a supplier to the public sector, then e-invoicing is an inevitability.
Governments are the main driver of e-invoicing as the EU standard 2014/55 requires more than 300,000 public administrations in EU countries to be ready for e-invoicing.
By February of 2020, 24 EU countries have implemented a B2G e-invoicing solution, offer e-invoicing to suppliers or require a B2G e-invoicing solution already.
B2G Invoicing with PEPPOL
Pan-European Public Procurement Online, or PEPPOL, is a set of guidelines designed to streamline procurement between companies and government entities regardless of their location or system.
These guidelines are so versatile that they have been adapted into other sectors apart from Europe or B2G.
Many companies choose to use the PEPPOL system as a guide for developing their e-invoicing system.
This helps businesses to elevate their e-invoicing systems and communicate more effortlessly with government entities as well as other companies.
More information about E-invoicing Solutions for Government Suppliers?
- How to send e-invoices to governments and ministries?
- E-invoicing Status Per Country Overview
- Storecove provides e-invoicing solutions for Australia, New Zealand and Singapore
- International e-invoicing: How to send e-invoices to other countries?
- PEPPOL Directory - Use this Tool to Search who's on Peppol
- How to register on Peppol?