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Adopting E-Invoicing Can Bring Huge Cost Savings To European Businesses
According to a recently released report published by Billentis and sponsored by Ricoh Europe, European companies can enjoy a cost savings of between 60 to 80 percent by adopting e-invoicing. In addition, the report estimated a business will recover its initial investment for implementing electronic invoicing within six to 18 months.
The report concluded that nearly one-quarter (24%) of the approximately six billion invoices and bills transmitted annually in Europe will be sent electronically. Moreover, the report anticipates a 22 percent annual increase in e-invoicing and electronic billing across that continent, both in the private and government sectors.
The impetus for this startling uptick in electronic invoicing? Across the board, the most common response is the cost savings afforded by e-invoicing.
The European Commission itself has demonstrated how electronic billing saves money by adopting its own e-invoicing technology. It also notes that each year, Danish taxpayers save upwards of nearly $20.3 million dollars (150 million euros) while local businesses save an estimated $67.6 million (50 million euros) due to e-invoicing. In Italy, savings have reached over $6.7 billion (3 billion euros).
The Billentis Report also states that while small and medium-sized European enterprises (SMEs) recognize the need for new solutions for managing billing and invoicing to meet customer’s demands while remaining competitive, many are hesitant to embrace change. Despite the clear cost savings promised by adopting e-invoicing, Europe’s 20 million SMEs, which account for 99 percent of all businesses on the continent, are hesitant to adopt electronic invoicing techniques.
Martin Hurley, Vice President and General Manager, Outsourcing Services Ricoh Europe, has been quoted as saying, “It’s clear that in order to thrive in the digital age and maintain their competitive advantage, both small and large organizations can no longer afford to ignore the business potential of e-invoicing. Developing the visibility of cash flow, improving invoice approval, and reducing administration time are just some of the benefits that can be attained from this technology. The next step for European businesses is to accelerate their journey towards full digitization. This begins with reviewing existing processes, technology systems and ways of working.”