3/1/2023 0 Comments Invoicing meaningThis indicates that a network of service providers is being established, which could help further the use of e-invoicing across Europe. The study not only shows an increase in the volume of e-invoices sent by businesses directly to another business, to the government or to a consumer, but also a large increase in the use of indirect e-invoices. Source: European E-invoicing Service Providers Association Table 1: Annual increase of direct and indirect e-invoicing. Only in Denmark, Norway, Iceland and Estonia does the share go above 40%. ![]() The share is between 15% and 40% in Finland, Sweden, France, Ireland, the Netherlands and the United Kingdom. Of invoices sent to consumers the statistics are even lower with the estimated share of e-invoices below 15% in most of Europe. This share drops to between 15% and 40% for much of Europe and even below 15% for a few countries (see Charts 1 and 2). Of invoices sent either between two businesses or between businesses and the public sector, the estimated share of e-invoices is above 40% only in Denmark, Norway, Sweden, Finland, Iceland and Estonia. Approximately half of this number are invoices to consumers the other half to businesses and the public sector. In Europe, according to research, the annual invoice volume is estimated to reach 36 billion invoices in 2016. Receiving and settling paper invoices is even more costly, at an estimated €5 to €15 per invoice, as the reconciliation needs to be done by hand. Reports have estimated that the direct staff costs of compiling and sending out paper invoices are between €2.50 and €10 per invoice. Likewise, the buyer (whether a private consumer or a small business) saves time and the labour costs associated with processing paper invoices and avoids bank fees and extra administration costs that can arise when mistakes are made paying bills. In addition, e-invoicing makes the whole process faster, meaning the supplier can receive the money more quickly and have a more predictable and manageable cash flow. The labour costs of performing all of these tasks can quickly add up. By automating this part of the payment process, both the sender and the receiver of the invoice can benefit from great cost-savings.įor example, the supplier saves money that would otherwise be spent on printing and posting invoices, responding to customer requests for copies or lost invoices, sending out reminders and dealing with errors in payment. Since e-invoices contain all of the information that is needed to make the payment, it removes the possibility of mistakes being made, for example the wrong amount being sent or typos occurring when entering payment details. The buyer checks the invoice and can initiate the payment – via credit transfer, direct debit or card payment – without having to type in the payment data as the e-invoice already contains everything that the buyer needs to make the payment. This service is often provided to the supplier by either a bank or a service provider and allows the supplier to send out the e-invoice to the buyer’s internet banking environment, a suitable digital wallet or another application. Some solutions combine e-invoicing with payment – meaning that the e-invoice is integrated with an existing payment instrument. This means that the invoice is issued, transmitted and received in a structured electronic format which allows for its automatic and electronic processing. ![]() What is e-invoicing?Įlectronic invoicing (e-invoicing) is the exchange of a bill and payment details between a supplier and a buyer in electronic format. This article looks into e-invoicing, explores exactly what the benefits are and explains what the EU is doing to promote its use in Europe. Some companies are already doing this, but there are still many that are missing out on all the benefits a fully digital payment process can bring. Yet it is possible to automate and eliminate manual intervention in these parts of the payment process as well. Except where invoicing and final book-keeping are concerned.īroad numbers of companies still print and send out paper invoices and some still do the book-keeping manually. Manual intervention, which tends to come at a much higher cost, has largely been eliminated throughout the payment process. Now that we are in the digital age, we have electronic payment systems, card payments and electronic transfers. In the past, payments were generally made in cash and book-keeping was done by hand. This is the first step in the payment process. Every time goods and services are bought and sold, an invoice is created.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |