Government may be driving the adoption of electronic invoicing, but companies see the benefits as well.
The ability to submit invoices electronically has actually been around for a few decades, but it was regarded as a practice reserved for companies that had the technology and dollars to implement and sustain the policy. As more providers and the cloud entered the picture, e-invoicing became easier to implement while being a less expensive and more efficient process.
Corcentric was featured in a PayStream Advisors report released earlier this year which shows the growth in electronic invoicing in SME’s. The report, “Electronic Invoice Management: A Move to the Middle” looks at how the innovations in cloud-based technology have allowed smaller enterprises to enter the market when it comes to processing invoices electronically. The report, “Electronic Invoice Management: A Move to the Middle,” looks at how improved innovations in cloud-based technology are making this transition so much easier…and much more affordable. Over half of those surveyed planned to implement e-invoicing in the coming year and the use of e-invoice portals has jumped over 40% in one year, from 22% in 2012 to 31% in 2013.
Governments take the lead.
Probably the biggest push for e-invoicing has come from governments across the globe. After the financial disaster in 2008, many countries enacted austerity measures. Cutting costs and reducing inefficiencies and fraud were considered essential to once again experiencing growth and profitability. And e-invoicing mandates were a major part of seeing those goals come to fruition. The EU, Mexico, and South America are much further along than is the U.S. in mandating electronic invoicing, but it is coming in the short-term for federal contracts.
One of the biggest steps forward is the EU Parliament’s approval of a European standard for e-invoicing in public procurement. This standardization will enable companies stymied by all the different cross-border procurement differences to now begin to submit e-invoices. What other advances is e-invoicing making globally?
- Portugal makes use of certified billing software mandatory
- B2C e-invoicing is increasing in the Nordic countries
- Ecuador makes compliant e-invoicing mandatory starting in June 2014
- Spain revealed that Spanish companies saved 458 million euros thanks to e-invoicing
- Mexican implementation of e-invoicing regarded as a model for other countries
- Chile mandates e-invoicing in 2014 affecting all multinationals
What is evident is that the push for e-invoicing is only going to grow, first in government contracts and, eventually for a vast majority of businesses and transactions. If you haven’t considered implementing e-invoicing for your accounts payable departments, or if you feel you still have plenty of time, you might want to rethink your position.
Want to learn more about e-invoicing? Download a complimentary copy of PayStream Advisors’ Electronic Invoice Management Report here.
The original article appeared on the Corcentric blog.