Save time and money with e-invoicing and e-billing
A significant proportion of any business’s cash-flow is tied up in the late payment of invoices. Electronic invoicing is rapidly changing how businesses invoice, shortening invoice payment time and reducing DSO.
The Problem with Traditional Invoicing
Invoice payment time
- 1 to 30 days – 82.8%
- 31 to 60 days – 15.8%
- 61 days or more – 1.4%
This means delayed cash flow.
Days Sales Outstanding (DSO)
- 1 to 30 days – 55%
- 31 to 60 days – 35%
- 61 days or more – 9%
The average DSO is 41 days in the UK.
Currently there is approximately £55bn in Unpaid or Outstanding invoices in the UK. Additionally, approximately 41% of all B2B invoices in the UK are Past Due Date.
Why are invoices paid late?
Over 50% of businesses experiencing delayed payments have identified invoicing inaccuracies and complexities of process as being responsible for delays.
Reasons for late payment
- Unable to pay – 55%
- Disputing payment – 29%
- Incorrect information on invoice – 15%
- Invoice sent to wrong person – 13%
The Solution: e-invoicing and e-billing
Each year, more businesses invest in e-invoicing/e-billing to reduce costs and improve cash flow.
- Improve Accuracy
- data-driven invoicing processes remove human error
- Handle Any Format
- From EDI to email, fax or even printed format invoices
- Reduce Overheads
- Remove the need to maintain equipment to print and post invoices
- Faster Payments
- Greater accuracy means less dispute, less delinquency and lower DSO
- Competitive Edge
- Reduce time spent creating and chasing invoices and improve Free Cash Flow for a healthier business
Worldwide Adoption of e-invoicing/e-billing
Brazil leads the world in e-invoicing/e-billing adoption, with over 90% of all invoices sent electronically. Europe lags behind with a typical 15-40% adoption rate for electronic invoicing.
The UK currently has between 15% and 40% adoption of e-invoicing. However, there has been a 17% increase in the volume of e-invoices sent in 2015 (for the UK).