How Transitioning to E-Invoicing Means Fewer Operational Headaches

Many companies have realised it’s time to break free from the operational headaches of traditional invoicing. Instead of time-consuming data entry, errors, mailing costs, limited visibility and storage and retrieval issues, decision-makers want streamlined invoicing processes, cost savings, greater payment visibility and efficient document management.

For some businesses, the move to e-invoicing could simply be a matter of compliance. For others, it’s a value-driven transition to boost efficiency and productivity, improve the customer experience and reduce environmental impact. With that in mind, let’s explore how transitioning to e-invoicing benefits your organisation.

Ensure regulatory compliance

The clock is ticking for traditional paper invoicing, with more countries legislating for mandatory e-invoices. Some countries have already mandated e-invoicing for B2B, B2C and B2G organisations. For example, as of August 1st 2024, Malaysia has mandated e-invoicing for businesses exceeding an annual turnover of RM100 million. While the pace and regulatory specifics of e-invoicing adoption vary across countries, the global shift towards digital invoicing is gradual but inevitable.

EU e-invoicing is in its transitional phase

Phase one of the EU’s e-invoicing directive took effect in April 2020, mandating that all EU public administrations comply with the European standard on e-invoicing. However, the regulations resulting from the EU directive extend well beyond B2G.

Starting in 2025, many businesses operating in EU member states will be legally required to use e-invoicing for B2B transactions, with requirements and timelines varying by member state. Some EU countries plan to introduce mandatory B2B e-invoicing early in 2025, while several member states have yet to finalise their plans for this area.

E-invoicing in the USA is building momentum

In the USA, mandatory e-invoicing regulations aren’t yet on the federal agenda. Tax complexities and the lack of a centralised authority have meant that e-invoicing is optional for financial transaction s. However, we’re seeing a growing trend of customers asking for e-invoicing options.

Even without federal laws, progress is being made towards businesses adopting e-invoicing voluntarily. The formation of the Digital Business Networks Alliance (DBNAlliance) in 2023 reveals businesses’ willingness to adopt e-invoicing without government regulation. In January 2024, the DBNAlliance, with the support of various B2B payments industry bodies, launched its open exchange network to enable the secure and efficient exchange of B2B e-invoices and documents for companies in the USA.

Regulatory compliance isn’t the whole picture for businesses globally—far from it. Businesses globally are transitioning to e-invoicing because it has many compelling benefits, such as significant efficiency and productivity gains, ESG benefits and customer experience improvements.

Save money

Printing, postage, and manual handling make paper invoices surprisingly expensive. While some paper invoices only cost between £2.50 and £5, several studies estimated the cost can be as high as £30 per invoice. Now, this might not be a considerable financial drain for businesses sending out 25 invoices a month. However, the reality is that most businesses send hundreds of invoices to customers and suppliers every month.

At £30 per invoice, a company only need send 150 invoices a month for the cost to climb to over £50,000 annually. For companies sending 500 invoices a month, that figure balloons to £180,000 annually.

In contrast, transitioning to e-invoicing comes with substantial cost-savings. Companies from a wide variety of sectors save hundreds of thousands every year by trading paper invoices for e-invoices. For example, a luxury goods manufacturer saved €300,000 per year by using document and output management software to send its customers e-invoices. Cost-savings to that extent are hard to ignore, especially in this economic climate.

Boost efficiency and productivity

Manual invoicing remains a common practice globally despite impressive technological leaps, including businesses adopting ERP and core banking software. Manual invoicing, which involves sorting, registering and manually entering data, is extremely time-consuming.

One report revealed that 48% of businesses handle 500 invoices monthly, with 66% saying it takes more than five days to process invoices manually. In this scenario, as much as 25% of a working month is wasted due to invoice-related inefficiencies. 

In contrast, e-invoicing can help organisations save up to 80% on sorting and processing paper invoices. Additionally, the processing cycle time is reduced by up to 65%, and payments made on time improve by up to 59%. Businesses also gain greater visibility into invoice status and payment history, allowing for proactive payment management.

Reduce environmental footprint

In addition to being inefficient, paper invoices also damage the environment. A study by Billentis calculated that, as a cautious estimate, a 20g paper invoice has a 40g CO2 footprint. With over 430 billion sent yearly, paper invoices are thought to generate over 50 megatons of CO2 annually, highlighting the combined environmental toll of traditional invoicing practices on the planet.

Paper invoicing has downsides beyond direct environmental damage, as they will adversely impact ESG reports, which may reduce investor confidence. E-invoices, however, set you on the path to a more sustainable business. Not only do they save paper, but they also reduce the amount of energy and resources required for printing, transportation, and processing, particularly for international invoices. 

Improve the customer experience

Not only does transitioning to e-invoicing streamline your internal processes, but it also improves the overall customer experience. By having your entire process set up around e-invoicing, you have the flexibility to use documents in various ways. For example, send e-invoices in line with your customer's communication preferences, such as through email, customer portal, ERP system or core banking integration. By improving the invoicing customer experience, your business will benefit from increased customer satisfaction, faster invoice payment times and stronger business relationships.

Master e-invoicing with Lasernet’s help

While many ERP systems have built-in e-invoicing capabilities, they pale compared to Lasernet. Our document management software works with ERP systems and core banking platforms to generate and distribute e-invoices and other vital communications to your customers. At the same time, Autoform DM archives and retrieves them with minimal user input—because we believe document management should be as hassle-free as possible.

Lasernet success story: Georg Jensen

The Lasernet platform caught the attention of Georg Jensen, a renowned Danish luxury goods and gifts manufacturer.

The business was optimising processes and workflows and had identified paper invoices as one of the top 10 potential savings areas. At that point, Georg Jensen sent 100,000 customer invoices yearly, and printing, envelopes and posting cost the company €5 per invoice.

€500,000 per year. Georg Jensen knew they had to make the switch — they just needed the right software partner with the expertise and personalised assistance to make the transition a success.

The luxury goods company chose Lasernet to provide e-invoicing capabilities. Hanne Stenager, IT Project Manager at Georg Jensen, said, “Lasernet was clearly the most interesting solution because it not only allows for electronic billing but also because it can be used for many other tasks when it comes to electronic documents.”

The project was a success, as the company waved goodbye to 70% of customer paper invoices and the investment in the software paid off in less than six months. This saved the company over €300,000 per year. Additionally, the successful implementation and investment in Lasernet gave Georg Jensen a reason to use the software to streamline other document work.

By choosing Lasernet, Georg Jensen saved money, unlocked greater document management flexibility, and reduced its environmental impact.

Read the full case study to learn more about how Georg Jensen optimised its invoicing processes with Lasernet.

Lasernet gives you the peace of mind that your business is e-invoicing regulation-compliant, not to mention more efficient and productive. The software has produced tangible results for over 2,500 organisations across the globe, with users experiencing a 35% increase in productivity by reducing manual processes and a 40% reduction in paper-based documentation processes on average.

Say goodbye to operational headaches like manual invoicing. Get in touch today to learn more about how Lasernet simplifies e-invoicing, or book a demo to see the document and output management software in action.