Why e-invoicing adoption still poses a challenge for global companies

And considering that there are still hundreds of businesses that keep running their document exchange operations using paper exclusively, it is hardly surprising that many are hesitant about going full digital – even though they are well aware of the benefits. After all, e-invoicing leads to a significant reduction of operational costs (savings of about 50-60%), faster time-to-payment, higher quality of data – and business executives know it would really be a shame to miss out on all of that (especially if their competitors found a way to make it work for them and now they’re gaining a significant advantage).

So, is there a way for them to solve this problem? There is.

The Solution? Creating a Sound e-Invoicing Strategy 

The COVID-19 pandemic has forced thousands of companies to rebuild their business strategy and jump in on the “digitalisation” bandwagon. As a result, many businesses are now aware that they need to start using some kind of an e-invoicing platform or a modern EDI system if they want to run their document exchange operations and collaborate with their partners in virtual realms. Of course, there are dozens of such IT solutions available on the market, so the question is – how do they choose the right one?

By and large, companies – especially the global ones – should be looking for a data exchange platform that can help them solve the challenges they are facing. In other words, their system of choice should allow them, for example, to send and receive invoices created in various document formats, share their documents using multiple channels of distribution (web portals, e-mail, etc.), and achieve full compliance with the latest legal regulations (in every part of the world where those companies operate). 

Also, some companies may be interested in improving their communication processes by adding invoice reconciliation, claim management, or spend control features to their platform. Thus, being aware of all the options and choosing the direction in which one’s company should go is key.

Another important thing is knowing whether one’s partners and customers are ready to become part of the e-invoicing revolution. And so, the situation requires companies to encourage other parties involved in their business to move on with the times and help them with the onboarding process. Also, by allowing partners to have a say in the process of developing a strategy, companies may find it easier to decide on specific distribution channels, document formats, and rules for invoice verification and approval. From the AP perspective, a vendor portal should be considered for smaller partners so that businesses can enjoy having a fully structured flow of documents and advanced reporting possibilities.

“A goal without a plan is just a wish”

The above quote from Antoine de Saint-Exupéry sums it all up nicely. Stepping into the world of e-invoicing requires having the right tools and knowing how to use them effectively. Thus, global companies should not think of e-invoicing as a threat but rather treat it as an opportunity to improve their business processes and build stronger relations with their partners.  

About Bartłomiej Wójtowicz

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