From Ken Clark, Product Marketing Director at OpenText.
From the use of stones in 3000 BC Mesopotamia to typewriters in the late Victorian Age, invoices have been used to track owed payments for thousands of years. In more recent times, e-invoicing has gained popularity, with businesses noticing a reduction in costs and decreased risk of human error.
These benefits are reflected in the ever-increasing e-invoicing regulation. For example, in Poland, their B2B e-invoicing system will be mandatory from February 2026 for large taxpayers, and April 2026 for everyone else. As similar regulation grows throughout Europe, businesses based in the markets they trade with will need to fall into compliance.
Benefits of e-invoicing
A study by Billentis revealed that the move from traditional invoicing to automated e-invoices could result in cost savings of up to 80%. In the current corporate landscape, following a rollercoaster financial year, budgets are tight. The move to e-invoicing is a prime example of a change that corporations can make which will lead to both long term savings and futureproofing ahead of increased statutory expectations.
According to Alexander Pope, ‘to err is human’. Though voiced centuries ago, the principle remains; human error is natural and expected. However, in departments that deal with large sums of money and key business partnerships, these mistakes can lead to severe business damage. Through adopting e-invoicing, and automating the process, companies can protect against these simple mishaps and their damaging consequences.
Moreover, in a world of growing AI adoption, next-day deliveries, and wallets on phones, frictionless transactions are fundamental to getting ahead of the competition. With governments seeking to legislate for mandatory invoicing, especially regarding B2B transactions, companies should focus on adopting this technology to stand out as a prospective trade partner. If they fail to do so, they risk losing out to competitors who have embraced the ease of automation.
Driving Success
When adopting e-invoicing, there are numerous elements to consider which can ensure these wide-reaching benefits turn into reality.
The pace of regulation adoption differs from nation to nation. For example, the Spanish government is currently drafting its new legislation, which will see application of mandatory e-invoicing across the B2B sector from next year. This stands in stark contrast to England, where e-invoicing is only mandatory for public bodies. As markets continue to evolve, it’s key for corporations to adopt solutions that enable compliance with the exact region they are trading with.
As well as differentiating between regions, businesses need a solution with scalability, that can adapt to working with small and medium enterprises (SMES), and global corporations. This is essential to ensure a wider prospect pool for both the long and short-term.
Prior to adoption, business leaders should identify how they will integrate e-invoicing technology into their current workflows. As with any digitalisation project, lack of internal resources and expertise can limit success. It is fundamental to adopt a solution that offers easy integration with accounting systems, ensuring that users can rely on their current functionality to navigate any obstacles.
One eye on the future
To save money, increase prospects, and keep ahead of global mandates, it is crucial that corporations adopt e-invoicing. Though necessary, however, digitalisation is not always a simple task. With the current legislative requirements differing across the world, businesses should prioritise scalable solutions that offer compliance with both different jurisdictions and internal systems.