Technology

5 Advantages Of Invoice Digitization

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5 Advantages Of Invoice Digitization: Any business that aims to manage its accounts payables and accounts receivable more effectively should be looking at utilising intelligent, digital solutions. Organisations across the globe are seeking a more collaborative work environment and easier electronic interaction with clients, partners, and other entities. E-invoicing is considered a powerful and easy to implement tool that can drive a range of benefits for buyers and suppliers. By 2026, the e-invoicing market will grow to $20.53-million due to its convenience and accessibility.

Most businesses are either still sending paper invoices or scanning and sending invoices via PDF. Both require a level of manual data entry that can result in a range of data entry problems and poor use of expensive resources. True invoice digitization through e-invoicing networks like Peppol. A simple, effective, and cost-effective method to send e-invoices, it offers an important range of benefits.

It’s Easy to Digitize

The days of invoice scanning and OCR data capture are disappearing. Modern and government supported e-invoicing networks like Peppol provide an easy and straightforward way to send and receive e-invoices. There is a straightforward setup and once connected you can send and receive e-invoices to anyone else in the network with a click of a button. There is no need to scan and data enter invoices anymore, invoices are received directly into your procure to pay system ready to be processed.

Freeing up your accounts payable team from tedious and high volume data entry tasks enables them to focus their expertise on more value adding activities such as invoice fraud protection, compliance and process improvement.

Digitization your invoices can save you money

The majority of invoices being processed across the globe are  sent either as paper invoices or as PDF invoices via email. These are costly ways to process invoices with manual data entry or validation usually required.  The Australian Tax Office (ATO) estimate that:

  • Average invoice processing cost for a paper invoice is A$30.87
  • Average invoice processing cost for a PDF invoice is A$27.67

Peppol E-invoicing is not only convenient but also saves you money, e-invoices are 66% cheaper to process than PDF invoices with The ATO estimating that it can reduce the cost of processing an invoice down to A$9.18.

Reducing the amount that you spend to pay your invoices is a no-brainer. This can either be realised as a direct cost saving through reduced overheads – improving your profitability. Or by re-deploying staff to other activities. In a business environment where good staff are hard to come by, this could be invaluable to businesses looking for more resource capacity.

More effective supplier interactions

Managing accounts payable and keeping track of your spend against projects is much easier when the invoice data is received electronically. Removing the time lag from invoices being sent via post or email means you have data instantaneously. More importantly, your suppliers know that they have received their invoice and it will get processed. Maintaining supplier relationships can be extremely difficult if your invoice processing has lots of manual steps which can create delays or errors.

According to the Accounts Payable Association, over 20% of suppliers have refused to work with a buyer again due to accounts payable process inefficiencies. Shifting to e-invoicing you can decrease your payment processing times and increase supplier satisfaction by speeding up the billing process and ensuring accountability.

Enhanced accuracy

Many aspects of invoicing and accounts payable can be automated through the adoption of e-invoicing through the Peppol network. Where manual processes are still utilised, errors are rife – humans are capable of making mistakes, even when trained professionals do a job. Repetitive, transactional tasks make mistakes more likely.

E-invoicing removes the need for any data entry, invoice data is processed directly through the Peppol network from your supplier’s system into yours. Data is validated through the network to ensure that it is in the correct format so it will always be ingested into your system ready to be processed.

Automating the data transfer workflows and managing documents electronically reduces the risk of human error. One more way invoice digitization can boost your company’s productivity and save money is by enhancing the accuracy of invoice processing.

Ease of access to information

If you manage your invoice process archive through paper or email, the experience of trying to find information in that archive is a nightmare. The sheer volume of documents over a long period, make it extremely difficult to locate the correct information. Misplacing, misfiling, or deleting a document will make it even more challenging or impossible to access the needed data.

Moving to e-invoicing ensures you always have a digital record of your invoice in your procure to pay system or ERP. Searchable, secure and compliant with tax record keeping, e-invoicing provides an effective solution for keeping your invoice processing documentation actionable.

Summing Up

Your business can benefit from new business opportunities created by invoice digitization since it provides a quick return on investment whilst ensuring the long-term stability of your brand. Using Peppol E-invoicing is a small step towards a digital and advanced future. Tech-friendly businesses will boom in the digital era. Make the right move at the right time to stay ahead of the competition.

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