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In today’s fast changing world, where information flows more freely and connections are made in a click, enterprises are under increasing pressure to perform. One way to deal with this challenge is to simplify processes and opt for the digitization of customer communications. This move enables organizations to cut costs and improve productivity.
One area where this has been clearly demonstrated, by both buyers and suppliers, is that of e-invoicing. By making the transition from physical to digital invoicing many enterprises are reaping the benefits of a more reliable, secure, traceable and streamlined process. Up until around five years ago e-invoicing solutions were principally developed for large enterprises.
However new solutions, specially developed for SMEs (Small and Medium-sized Enterprises), are gaining market share. The European Commission has a clear digital agenda for Europe and electronic invoicing has a major role to play in this initiative. The Commission aims to remove all obstacles, regulatory or technical, that prevent the adoption of e-invoicing. The mass adoption of e-invoicing (public and private sector) within the EU could lead to significant economic benefits and it is estimated that moving from paper to e-invoices will generate savings of around €240 billion over a six-year period.
1 The U.S. Department of Treasury doesn’t have such regulations yet, but recognizes that e-invoicing would reduce costs by 50% and would save about $450 million each year. 2 Currently the rules that govern e-invoicing are fragmented and based on national requirements. The potential market for e-invoicing is huge.