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What's Happening in the European E-Invoicing Market?
Paper invoices are a relic of the past. By offering next-level convenience in financial transactions, e-invoicing continues to bag the attention of European enterprises.
FREMONT, CA: Technology has always been more of a boon, and its advancement has helped business in several ways. One of the advancements in terms of technological progression is electronic invoices, which allow companies to be more efficient in financial interactions. E-Invoicing is a simple tool but a powerful one. With the elimination of manual data entry, accuracy check, and swapping software, creating and sending invoices is made easier than ever in this digital age. While some companies still send out paper invoices and do manual bookkeeping, this number is slowly coming down, as digital means seems to be more convenient. Paper invoices can no longer compete with this pace, and it is only a matter of time until electronic invoices take over as the industry standard. As e-invoicing will continue to gain popularity in Europe, below trends will revolutionise the way businesses make and receive payment in the coming years.
Automation is a critical feature in electronic invoicing. The automated features will eliminate the need for businesses to track financial interactions with each client and reduce the probability of errors. Reminders for late-payments and payment due dates can be sent out automatically, assisting firms and customers to stay on track with payment schedules. With automation, firms can even make payments automatically on specified dates. By automating all these manual responsibilities, staff can spend less time working on the invoicing process, and more time focusing on other complicated tasks. Also, without hiring additional staff to focus solely on invoicing, companies can save time and money.
Blockchain technology can allow firms to optimise the invoicing process by keeping a record of all transactions. By omitting the need for additional resources and third-party interactions, blockchain is set to make cash flow management streamlined at all stages of the invoicing process. By verifying all the details of the incoming and outgoing invoice, firms can mitigate the risk of fraudulent activities. As blockchain becomes more scalable, this trend will possibly disrupt the traditional invoicing system in several ways.
Software as a Service (SaaS) is undoubtedly going to become the norm for e-invoicing. With several technologies operating from the cloud, e-invoicing would not be an exception to that rule. SaaS lets firms access records and pivotal data from anywhere with the help of the internet. Additionally, invoicing using cloud services will allow users to receive real-time updates and take immediate action. Addressing payment issues immediately will surely work in favour of companies. The provision for cloud invoicing will cross over into mobile applications soon, due to the availability of cellular data. This means that access to invoicing through mobile devices will become a standard requirement for customers shortly.
The use of electronic invoicing in Europe is expected to grow in the years ahead. European Union has adopted the compulsory use of e-invoicing on every transaction between public administrations and providers. Given that, small and medium-sized enterprises and large companies will soon start to issue electronic invoices aiming to speed up and simplify their trade relations across the European Union. With all the above technology trends contributing to growth in its use, e-invoicing is sure to become the global business-standard.