Electronic invoicing software

Traditionally, invoice management involves a manual, paper-based process. However, this approach causes problems, not only in terms of inefficiency but also regarding compliance with new tax reporting regulations.

Hence, to combat these issues, businesses are switching to electronic invoicing software.

Automated solutions can significantly benefit the teams within the finance department, for instance, the Accounts Payable (AP) and the Accounts Receivable (AR) functions.

In this article, we will be covering how electronic invoicing software can resolve the issues faced in these accounting functions, as well as our software recommendations…

Manual invoicing processes cause various issues. Many of which derive from human error.

This occurs due to the requirement of rekeying invoice data from one format/system to another. As a result, duplications and character mistakes are commonplace.

Not only is this an inaccurate method, but is also time-consuming. Imagine having to process a significant volume of invoice data daily, weekly or monthly.

Plus, this leads to a slow approval process, which consequently results in disputes and slow payments.

This is a common issue within the AP function. In fact, Ardent Partner’s 2023 research*, states that slow invoice and payment approval times are the biggest obstacles AP teams face. This has been the case for two years in a row.

At Transalis, we believe that automation is the most efficient way of invoicing. Unlike paper-based processes, electronic invoicing software sends invoices directly onto a cloud-based platform for automated processing. Thanks to this technology, the risk of human error is eliminated as no rekeying of data between systems is required.

Furthermore, this means staff can also work more efficiently. Their focus can be re-directed to revenue-generating activities and building stronger relationships with the trading network.

Businesses that receive more than 2000 invoice documents per month can see an ROI of 60-80% with AP Automation over a manual Accounts Payable process. Starting from just £19,500 per annum, AP Automation converts all inbound invoice documents into and standardised format and routes them to the required system for approval and payment.

The main challenge businesses are facing within the AR function is the rising mandatory tax requirements.

To explain, government and public sector organisations around the world are making it mandatory to use electronic invoicing. The purpose is for tax reporting.

Below are European countries that have made this announcement:

The main reason for this is to close what is referred to as the “VAT gap”. The “VAT gap” signifies the disparity between anticipated VAT revenue and the real amount gathered.

In fact, in 2020, the annual VAT gap was reportedly €93 billion**. And that is only in Europe!

With the new rules and requirements, businesses, especially larger organisations, are discovering just how complex ensuring compliance can be.

For this purpose, we recommend using our electronic invoicing software, AR Automation. We know every business’s needs are different, which is why you can build out a bespoke AR Automation solution with all the features and functionality you need. This can include the Real-Time Reporting (RTR) functionality and the option to include PEPPOL connections.

Plus, we are completely transparent with our pricing. AR Automation starts from just £3,999 per annum, or you can try our easy-to-use calculator. Here you can select the features you desire and get an overall price, whether that be monthly or annually.

You can also be assured that we follow the highest standards for eInvoicing. We are a member of EESPA, are a certified PEPPOL Access Point, and have completed the EURINV19 project as part of the EU’s Connecting Europe Facility programme, which supports a new einvoicing standard.