Despite how much easier it is to manage invoicing and receivables electronically, countless companies worldwide continue to rely on manual processing. That means money wasted on paper, envelopes, stamps and labor.
With those considerations in mind, new VAT laws and EU regulations have been initiated to encourage increased reliance on electronic invoicing.
For example, new VAT rules in the United Kingdom are stressing for the complete digitization of the economic community, encouraging them to become fully electronic by providing e-invoices to auditors. This move will save businesses money by speeding up various processes such as tax payments, both for the entity and the government receiving the payment. Implementing e-invoicing translates into more simplified and efficient auditing, as well.
The European Commission is doing more than encouraging e-invoices; they are mandating their use across the EU. While some EU nations, such as Spain, Greece and Denmark already require e-invoicing, the countries that have yet to do so will be forced to implement those guidelines.
Meanwhile, all public sector entities across the EU are being urged to implement the use of e-invoicing by 2016. The need for electronic signatures has been abolished, easing the way for transactions to be conducted electronically.
Meanwhile, e-invoicing use, in general, is on the rise. According to Connecticut-based Gartner, the world’s leading information technology research and advisory company, electronic invoicing is slowly being embraced by the global economy. The company projects the growth of e-invoicing between 12-15 percent.
E-invoicing reduces costs, too. Gartner says industry analysts claim processing invoices electronically can be up to ten times cheaper than performing the same task manually.