By Eric Rasch, Liaison Healthcare Informatics
If someone came up to you and proposed a project that would cut your costs 80 percent and pay itself back in six months, would you take them up on the offer?
While admittedly being on the extreme ends of the scale, these numbers are within reach of the average project of switching from paper-based invoicing processes to electronic invoicing. Thus, it’s no wonder that e-invoicing is growing globally at a double digit growth rate, and many and more organizations – companies and government entities alike – are jumping on the band wagon. However, the overall adoption rates of e-invoicing may still seem surprisingly low considering the benefits that are there for the taking. Zooming in on the subject provides insight as to why this is.
A closer look at the overall numbers reveals an interesting array of different market conditions and varying drivers for market growth around the world. For instance, just like we have here in Northern Europe, a high percentage of all invoicing is electronic in South America. The difference is that in South America most governments mandate the use of electronic invoicing for businesses that meet certain criteria in order to enforce adherence to tax legislation, whereas in Northern Europe the primary driver for e-invoicing is achieving greater efficiency and cost savings through process automation and digitalization.
In addition to the market drivers, the ways of doing e-invoicing and the regulations governing it differ across markets. This causes issues especially for multinational companies that need to adhere to the local regulations in all countries they operate in. With many countries figuring out their own approaches to governing how e-invoicing should be done and coming up with legislation to guide and even force behavior, managing e-invoicing across multiple countries is a true challenge.
Regardless of the difficulties, the benefits of e-invoicing are clear and the general development is taking us towards a world where paper invoices are mostly a thing of the past. In order to craft a strategy for keeping up with this development it’s important to understand:
- The past development and why different countries have ended up where they are today
- The current environment and what to consider when utilizing e-invoicing
- What developments are taking place now and what are the most likely paths that the markets are going to follow in the future
As an e-invoice operator, Liaison closely follows the market developments and helps companies in complying with the developing regulations. We are sharing our views on these matters in two upcoming webinars, the first of which discusses the past, present and the future of e-invoicing. You can check out the details and register for the webinar here.