August 10th, 2020
When it comes to B2G (business-to-government) and B2B invoicing, especially when international transactions are involved, there are endless benefits of electronic invoicing. Or e-invoicing, or EDI invoicing as some say. We digress. Regardless of what you call it, e-invoicing is a significant component of any well-oiled supply chain. To keep it short and sweet, we asked TIE Kinetix’s EDI and e-invoicing specialists to lay out the top 5 benefits of electronic invoicing.
1. One set e-invoicing standard
Around the world, more and more organizations are continuing to adopt e-invoicing as their preferred B2B invoicing method. Although many adopt e-invoicing by choice, this isn’t always the case—there have been a lot of local regulations that determine the way in which an organization is required to send, record, and store all transactional documents. In this sense, there’s a need for e-invoicing. But considering how challenging it is to make sure your organization meets all applicable legal standards, in combination with the amount of organizations who are already exchanging invoices electronically, it is, simply put, easier to invest in an e-invoicing solution that to try to keep up without one.
Today, governments and private organizations all over the world are switching to e-invoicing as their standard for sending and receiving invoices. With a set standard for sending e-invoices, B2G and B2B invoicing is simplified. As we’ve already mentioned, it’s an easier way to comply with all regulations. With the set standard of e-invoicing, governments and businesses are able to send invoices all over the world with the assurance that their documents are traceable and secure. Thanks to these e-invoicing standards, there’s no need to worry about unapproved invoice forms.
2. Automated electronic invoice processing eliminates errors
E-invoicing can seem very complicated at times, leading many organizations to believe that there are a lot of risks or problems involved. This is especially true when different (international) business transactions are in the mix. But e-invoicing doesn’t have to be complicated. That’s because one of the major benefits of e-invoicing is that is can be completely automated. Unlike when manual processes are involved, if your B2G and B2B invoicing is automated, there’s very little room for mistakes. That’s because automated electronic invoice processing eliminates the need for human interference. Without manual input, there’s immediately an improvement in productivity, processing speeds, and reduction of errors.
3. B2G and B2B invoicing costs are decreased
With an automated e-invoicing solution, manual mistakes are prevented and invoices are processed and paid more quickly. This can have a huge impact if you’re looking to optimize your procure-to-pay or order-to-cash processes. That’s because when you eliminate human errors, you have the potential to decrease costs associated with chargeback, time spent on invoicing, and more. With electronic invoicing, you can do more work without the need to hire more people.
In other words, implementing an automated e-invoicing solution yields immediate savings. In fact, you can reduce B2G and B2B invoicing costs from 25-50% with electronic invoice processing. And by decreasing costs, you can process invoices more efficiently and use personnel more effectively, leading to an improved cash flow.
4. Supplier and buyer relationships are improved
Automating B2G and B2B invoicing quickly improves collaboration with all your trading partners. For one, there are no more lost or delayed invoices. With a trustworthy e-invoicing solution, you can guarantee timeliness of delivery, as well as accuracy. Speaking of accuracy, another benefit of e-invoicing is that you partners won’t be tracking you down to fix mistakes. That means invoices are paid faster, and your relationships with your partners are improved. In return, you can create more business due to the automated upkeep with your current partners.
5. Processing and payment cycles are completed faster
Without an automated e-invoicing solution, it can be difficult to manage accounts efficiently and professionally. There’s often a slower collection time, which leads to an increase in debtor days. With an automated e-invoicing solution, the purchase process streamlined. You have full control over your B2G and B2B invoicing processes, as well as access to valuable insights and an overview of your entire workflow 24/7.