Many accounts payable departments still operate with vast quantities of paper, however the evidence below shows that this is rapidly becoming a thing of the past:

• During 2007 the Swedish rates of e-invoicing usage were 81% higher than in 2006
• Over half of UK companies now have fully automated systems
• Bo Harald – Chair of the European Commission Expert Group on e-invoicing says that many countries are looking to move to “e-invoice, or no invoice”.

A Money Saving Venture

There are many reasons why it is an attractive proposition for many, but cost savings and increased cashflow are the driving factors. The potential saving to UK business of adopting e-invoicing could run as high as £12.5bn – this can come from profits saved where they had previously been lost due to duplicate invoicing, slow transaction process and occasionally, fraud.

Increased Visibility Encourages E-Invoicing in Banks

Two global financial institutions, Citi and the Royal Bank of Scotland both recently announced partnerships with e-invoicing specialists Ariba and Accountis respectively.  Both banks were attracted to the higher level of visibility that e-invoicing provides – generating a platform whereby they can offer an extension of their products and services.

..But Don’t Run Before You can Walk

Don’t undermine the benefits of e-invoicing under a mound of complexities.  Make sure that the operating model you chose is compatible with those of your supplier, other business partners and all the respective banks involved.

What Your Company Needs to Do Now

Unfortunately it’s not possible to plan a single-step switch from paper to electronic invoicing. Migration will follow a normal adoption curve with some suppliers being very receptive and others steadfastly refusing to adopt any form of e-invoicing, with the majority gradually moving over time. Therefore communicating with suppliers effectively in the early stages of the adoption process is critical.

Step 1. Audit of Master Vendor File

Start the new system with a clean master vendor file.  The whole process would be best served by an efficient and up-to-date list of current suppliers accurately listed and filed.

Click here for advice on how to clean your Master Supplier File

Step 2. Identify Compliant and Reactive Key Suppliers

Put together a list of Suppliers who you know will take part and approach them first. Find out what their main concerns and issues are and address them as part of the general adoption process. Moving your friendly Suppliers across first will help you identify any potential problems early on, and create a smooth adoption process for other Suppliers.

Step 3. Inform Suppliers About Your Project

Let your Suppliers know that you have implemented an e-invoicing service and want them to take part. Communication should be company branded and personalised as much as possible. For example, a personal telephone call could be followed by a letter and supported by further information in the post. This could include documentation that educates Suppliers on the benefits of e-invoicing such as FAQ datasheets and case studies.

Step 4. Register and set-up

Once a Supplier agrees to take part they complete a simple registration process. They can quickly be setup on the EIPP system and begin receiving and sending electronic documents. In Many cases your EIPP vendor will provide a fully managed service for you and will take over the paper document processing, scanning invoices and extracting data and then turning them into electronic documents for you to manage. 

With 56% of UK companies now using a fully automated e-invoicing function, we are now entering a critical stage of the evolution of e-invoicing where to not be a fully paid up member of the community will start to have a radical impact on corporate efficiency and ultimately, profitability.


<back