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Benefits of E-Invoicing for CFOs in Europe
Cost Efficiency
E-invoicing eliminates costs associated with paper, printing, and postage. SPS Commerce customers like Bed Bath & Beyond experienced significant savings after shifting to e-invoicing, even in their European operations.
That is valid for most paperless operations. Switching to a digitalized solution reduces costs, from purchase orders to invoices, all documents are eligible!
Accuracy and Error Reduction
Manual invoicing is prone to errors, which can be costly and time-consuming to rectify. With e-invoicing, you don’t have to dedicate someone to control invoices, it goes with the flow, and if an error pops up, you receive an alert!
In the end, e-invoicing adopters reduced invoice discrepancies significantly, leading to fewer disputes and faster payment cycles.
Faster Processing
As just seen above, automated workflows expedite invoice processing. Our customers saw a dramatic reduction in processing time, allowing for quicker payments and improved cash flow.
It is even more crucial in complying with European payment deadlines that may vary from a country to another.
Enhanced Security
E-invoicing platforms offer robust security features, reducing the risk of fraud and ensuring compliance with GDPR (General Data Protection Regulation). For example, Urban Outfitters leveraged SPS Commerce's e-invoicing solution to protect sensitive financial information across its European operations.
Then, European e-invoicing system often include using either a secured network like Peppol, or a State Platform handled by Tax Authorities. This adds an extra layer of security in the equation, and being compliant with the requirements those platforms ask is not an option.
Streamlining Operations
E-invoicing seamlessly integrates with existing financial systems, offering real-time tracking and monitoring of invoices. For instance, Bed Bath & Beyond integrated SPS Commerce's e-invoicing solution with its ERP system in Europe, leading to improved cash flow management and forecasting.
Those streamline operations can only be possible if you go digital. As we saw earlier, human data entry is prone to errors and it can slow all your processes.
The Incoming ViDA Proposal
Now that all the benefits e-invoicing have been listed out, we should not forget that European regulations also have a huge weight in that switch.
If you are to deal with a company based in European Union, you must be aware that the ViDA project is being actively discussed and should be put in place in 2030. This VAT in the Digital Age proposal aims to unify VAT declarations throughout the EU. Fiscal regulations might change with some countries, such as the delay of Taxes Statements.
Conclusion
The urgency for European CFOs to switch to e-invoicing cannot be overstated. Mandates making e-invoicing compulsory might discourage, but its many benefits of improved compliance, cost savings, and operational efficiency far outweigh the initial challenges.
As demonstrated by the success stories of SPS Commerce customers, transitioning to e-invoicing is a strategic move that can drive significant value for companies. So, why would you wait, start your digital revolution now!
