More automation in invoice processing is set to benefit suppliers and manufacturers pursuing cross-border trade post-Brexit
Determined businesses will always find ways to trade with each other in the face of challenges. As supply chains respond to the impact of Brexit and the end of friction-free trade between the EU and the UK, eInvoicing – the electronic exchange of invoices – is set to play a greater role in protecting cashflow and speeding up payment cycles.
Buyers and suppliers in all sectors are grappling with the continued economic threat posed by Covid coupled with the added consideration of how best to navigate Brexit. Those with supply chains or distribution networks involving both the EU and UK are contending with new systems and procedures for customs declarations. As well as the export of finished goods, the burden of red tape affects the import of parts and components needed in manufacture. All this added administration inevitably risks putting extra cost on the bottom line.
Transalis is just one of just 12 eInvoice solution providers across Europe to pass a rigorous new electronic invoicing standard, EURINV19.
Under EURINV19 protocols, companies can signal to other traders that they operate invoice automation to a recognised common standard, so making the exchange of invoices within and between markets much easier.
Automation versus paper
What can companies in international supply chains do to safeguard cashflow and build prosperity despite the hurdles in their way?
A key answer lies in adopting greater automation of back-end processes.
The market in eInvoicing is growing but there is huge scope for the benefits to spread further. Around 550 billion invoices are exchanged annually around the world with the latest figures showing the vast majority are still based on paper formats. ‘Paperwork’ remains the norm.
But as more business decision-makers choose an electronic route, they will be better placed to achieve both commercial efficiency and compliance with government requirements. Indeed, by as early as 2025, submitting invoice information in electronic formats is expected to dominate as a basic requirement of cross-border trade.
eInvoicing efficiencies
Suppliers will increasingly struggle to be paid quickly and without fuss unless they accept and act on the greater efficiencies that eInvoicing can bring.
The question of how to optimise cashflow and faster payment cycles is often buried in the detail of correcting data errors and mistakes on invoices. By minimising the risk of human error in the first place, finance and administration teams can more easily encourage customers to agree to priority payment arrangements, for example by offering early settlement discounts or new terms.
Increased accuracy, quick resolution of disputes and easy account reconciliation are all factors that improve faster payment cycles and cashflow, reducing the debtor days outstanding. A report by Atradius UK in 2018 found that two-thirds of suppliers had achieved faster payments after the adoption of eInvoicing. By minimising the costs of managing their supply or distribution networks, they had kept their cashflows healthier.
Digital transformation
eInvoicing is the most human error-free and efficient method of exchanging business documents. Transalis eInvoicing addresses all common invoices and related message types. We provide a variety of validation checks to reduce error rates and speed up the invoicing process.
Our ‘bundle based’ business model provides a complete solution without any additional VAN, or value-added network, charges. In other words, no fee per transaction meaning you can apply eInvoicing to however many trading partners you have at no extra cost.
Getting partners onboard
We will also help you reach higher adoption rates across all trading partners through a fully supported onboarding process featuring training, guides and user testing.
Our solution has already been adopted by finance directors and controllers, procurement managers and heads of Accounts Receivable and Accounts Payable in sectors including manufacturing, electronics, pharmaceuticals and advanced engineering.
We know from years of experience that relationships between trading partners can be improved – with substantial productivity improvements achieved – through automation.
By adopting eInvoicing, your management and staff can focus on priority tasks to develop and grow the business without the constraints typically inherent with ‘paperwork’.
Process transformation
Our eInvoicing suite provides the technology platform and solution to digitally transform sales invoicing and or accounts payable administrative operations, freeing up valuable staff time to focus on priority tasks, to support the profitable growth of the business.
Digital invoicing reduces the costs of processing, print, postage, storage and archiving, so enhancing cashflow.
It means there are fewer human data entry errors that would have previously led to time-consuming delays in approving invoices, reconciling accounts, releasing payments and resolving disputes.
If you are involved in cross-border trade post-Brexit, and you want to make more informed decisions about cashflow and faster payment cycles, why not talk to us on 0845 123 3476 or +44 1978 369 343 (for international callers), or email us on sales@transalis.com.
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The contents of this publication are the sole responsibility of Transalis and do not necessarily reflect the opinion of the European Union.
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