Did you know that each year, we send 550 billion invoices globally? And is it predicted that this will quadruple in the next 15 years? The bulk of invoices is still being handled manually. Changing to automated electronic billing, also known as ‘e-invoicing,’ can significantly save your organization.
In the old days, most invoices were just handwritten receipts. Today, most invoices are PDF files sent by e-mail. Although they have become electronic, handling an invoice still requires many actions from an employee. As mentioned, Dynatos sees many advantages and opportunities for financial departments in robotizing, amongst other things, billing processes. We see a lot of potential in e-invoicing.
E-invoicing means an invoice is created as a data file (mainly an XML file) rather than a document. This way, it can be processed automatically, making it perfect as a robotized process. Why? Because the invoice is sent directly from your system to that of your client or supplier, and visa versa. There is no need for an employee to manually process it. Your accounting system and/or order-to-cash and purchase-to-pay systems will take over that task with E-invoicing. And you can directly integrate with your systems.
E-invoicing lowers costs
One of the main advantages of e-invoicing is a lower cost per invoice. A recent study showed that the cost of a single invoice drops by more than half when using e-invoicing instead of paper and PDF invoices. The biggest gain is the realized income out of the sending process. Printing an invoice and using envelopes and postage are no longer needed. Also, the costs of archiving digital invoices are a lot lower than those of archiving paper ones because there is no longer a need for physical storage space.
E-invoicing will be the new standard.
If you ask us, we will say that e-invoicing will become the new standard. At the moment for instance, not only governments but also software companies are working on multiple initiatives for adopting e-invoicing. Routty, Dynatos’ e-invoicing platform, is an excellent example of such an initiative. This platform is fully cloud-operated, is easy to integrate with your systems, and speeds up onboarding with clients and suppliers.
E-invoicing will be mandatory
More and more countries are expected to make e-invoicing mandatory, especially for companies that do business with governments. This is partly because of stricter rules on compliance with taxing regulations. Thanks to e-invoicing, governments can check much more quickly if companies follow VAT regulations, for instance. Countries in South America and many European countries, like Italy, have made electronic invoicing mandatory for companies that bill governments and all B2B company activities. And on the pan-European level, a platform has been introduced to facilitate electronic invoicing: PEPPOL. This platform will make it easier to bill governments in a standardized way and offers a series of specifications that ease the process for international tenders.
E-invoicing is our game
Financial process optimisation is engraved in Dynatos’ DNA and e-invoicing is a big part of that optimisation. That is why we fully embrace the development of it, for instance, with our Routty platform, which is also a PEPPOL Access Point and has standard integration with all major E-invoicing networks worldwide.
The future of the invoice is e-invoicing. Let Dynatos guide you on your first steps into this world. Do you want to know more about e-invoicing and what opportunities it can bring to your organization? Give us a call. We are here to help you.
