Reasons to automate invoice processing

Businesses find that switching away from manual processing with digital transformation is far more beneficial for the finance department.

Firstly, organisations that adopt digital transformation solutions for the Accounts Payable (AP) function, eliminate errors, speed up processing, and save on overhead costs. Secondly, with increasing international eInvoice mandates organisations need to future-proof cross-border trade through eInvoice-compliant solutions for the Accounts Receivable (AR).

This blog explains how automation can significantly enhance both of these functions in the finance department.

In this article, you’ll learn:

eInvoicing refers to the digitised exchange and processing of invoices. eInvoice solutions offer a fully automated service, covering the entire life cycle of an invoice – from the moment it is issued, sent, matched, paid, reported and archived.

There are common misconceptions about what an eInvoice actually is. To explain, paper invoices converted to digital formats (e.g. PDF) are not eInvoices. This is because they do not follow a structured digital format/protocol and were not generated electronically. eInvoicing can significantly relieve pressure on the finance department as it saves significant time by removing manual processes, such as rekeying of data.

So, what makes a good eInvoicing solution? We believe there are several things to consider when comparing different solutions; your business objectives, the functionality you need, the costs and the expected ROI.

To help you make these considerations, we run through the benefits of eInvoice solutions for each accounts function in more detail below…

A labour-intensive, paper-based approach to processing invoices can lead to errors. For example, mistakes in data entries and duplications can creep into the process. As a result, the Accounts Payable function faces immense pressure to ensure accuracy through data checks. This can lead to a slow approval process.

With tailored paper-to-digital invoicing solutions for Accounts Payable, manual tasks are eliminated. Businesses can then speed up the downstream processes of payment authorisation which leads to further benefits, such as early payment discounts.

Moreover, on the subject of cost, eInvoicing can deliver great ROI. In fact, according to an international market report by Billentis*, eInvoicing can provide savings of between 60% and 80% compared to the costs of conventional paper-based invoice processing.

Another reason to automate invoice processing is to ensure compliance. As mentioned above, eInvoicing is rapidly becoming a tax and customs requirement across Europe.

To illustrate, here is a summary of some European countries that have announced the implementation of einvoicing mandates:

Plus, AR eInvoice solutions should also have extended functionality that covers related documents and messages, for example:

You need to be aware of the information and formatting required to meet the regulatory requirements of the local tax authority. In fact, different governments take different approaches, with some authorities requiring more direct oversight at an earlier stage than others.

We are a PEPPOL-accredited provider so we comply with the highest EU standards for European trade with the private and public sectors. Need compliance? Our AR Automation solution is the right choice for your business.

Choosing between eInvoice solutions can be difficult. The two key factors to consider are your exact business needs and if the solution is cost-effective.

We understand the importance of these two factors. Hence, we offer complete transparency with our pricing. For AR, our prices start from £3,999pa, and AP from £19,500pa. In fact, you can discover the exact cost of an eInvoice solution tailored to your requirements using our AP Automation or AR Automation calculator tools. Otherwise, you can discuss an overall price breakdown with our friendly team.

Additionally, what differentiates us from our competitors is our unique pricing strategy. Unlike them, we don’t employ a Value-Added Network (VAN) pricing model. A VAN charges for transmitting messages based on overall message volumes and character counts within each document. With this pricing model, there are potential penalties for surpassing limits. As a result, successful businesses are essentially punished for their growth.

Transalis is committed to supporting your business’ advancement, we do not include VAN charges or any other hidden fees in our pricing. Take a look at our eInvoice solutions for more information.