How e-invoicing Technology is Changing the World
Demand for e-invoicing is increasing
20% growth in e-invoicing worldwide
- Predicted e-invoicing (B2B) volume in 2016 – 5bn*
- Predicted e-billing (B2C) volume in 2016 – 3bn*
The impact of B2G
Government mandates for B2G invoicing has a noticeable knock-on effect as suppliers and the broader market follows. These countries face B2G obligations soon. Over 100,000 Public Administrations, and suppliers will be affected across the EU with the need to accept electronic invoices from November 2018**.
- Switzerland, January 2016
- Estonia from end of 2016
- France, 2017 (step-by-step)
- Sweden, 2018
Globally, there is a tie-in with e-invoicing becoming mandated to improve VAT collection. This is typically driven by countries with big fiscal challenges, trying to close leakage in their tax systems.
Traditional cost per invoice**
- Print, stuffing envelopes and postage – €3.90
- Management, reminders and remittance – €5.00
- Archiving – €2.20
Electronic cost per invoice**
- Management, reminders and remittance – €3.40
- Archiving – €0.80
- System and processing costs – €0.30
Which results in a typical saving of €6.60 per invoice!
Improving payment speeds
e-invoicing reduces Days Sales Outstanding (DSO). Traditionally, the average DSO is 48 days in Europe, and 41 days in the UK.
Even a 10% reduction in DSO can make a huge difference to business cash flow.
It’s not just invoices either
Any business-critical documents can be sent in a similar manner
B2G again leads this push with a drive for fully-electronic tenders and communications for procurement processes***
Read-receipts for legal validation – e.g. health and safety documents, dunning’s, etc.
Secure, measurable, cloud-based archival for quick access and reprinting
What do those who know, know?
- 50% reduction in delinquency
- 90% reduction of suspense account
- 5-day reduction in DSO
“It’s not just the electronic delivery, it’s the ease of use of the portal, it’s the reporting, the sophisticated and customisable front-end, there are so many reasons why we chose Netsend.”
Download the full Neopost case study here.
- Time saving of 100 staff-days per month
- 90,000 fewer documents posted each month
- Automation of 150,000 invoices and statements per month
“Netsend is leaner, cleaner and easier to use than any other e-invoicing or document management solution we have worked with.”
Download the full VF Corporation case study here.
*Billentis Report (Feb 2016)
**EU Directive 2014/55/EU
***EU Directive 2014/24/EU
**** BBC Article – cash flow is king for tech savvy small businesses