Building your accounts payable e-invoicing strategy

Developing an e-invoicing strategy not only brings you closer to embracing digital transformation but is also essential for businesses aiming to stay competitive; it has transitioned from an option to a strategic imperative.

This is something that’s true across all areas of business, from marketing to HR and product development to accounts payable (AP). Indeed, it’s in the realm of AP where electronic invoicing and digitization is ushering in a whole new era of efficiency and compliance.

In this blog post, we’re going to explore six reasons why implementing an accounts payable e-invoicing strategy is a necessity in the modern business landscape.

6 reasons to implement an e-invoicing strategy for accounts payable

1.  Government regulations support the adoption of electronic invoicing 

E-invoicing is not a new concept but in recent years, it has been adopted at a rapid pace on a global scale. This has been helped largely by government regulations, particularly in Europe where a series of new regulatory initiatives has encouraged the adoption of electronic invoicing throughout the European Union.   

Indeed, as of April 2020, EU Member States are obligated to incorporate the EU’s e-invoicing directive into domestic legislation. As such, the time to act is now if you’re an organization operating in the EU that hasn’t yet adopted e-invoicing.

2. Enabling e-invoice processing results in increased efficiency 

Automating time-consuming, laborious manual tasks becomes easy when your accounts payable team has access to modern AP Automation software to process traditional and e-invoices. Data entry, invoice coding, invoice routing, approval, and more can all be automated quickly, easily, and effectively, freeing up your AP team to focus on more important, strategic tasks such as exceptions and supplier relationship management.

3. Stay competitive by reducing invoice processing costs 

AP automation can also help to reduce many of the costs associated with traditional invoice processing. This is because software like Cevinio is not only capable of processing any type of invoice format, including e-invoices, but it also helps to reduce the risk of costly errors, and rework requirements. In addition, companies can avoid the potentially expensive costs associated with regulatory non-compliance.

4. Know your accounts payable invoice process in and out  

E-invoicing provides better visibility into the AP process, making it much easier for governments, companies, suppliers, and other involved parties to track invoices and ensure compliance. Furthermore, advanced e-invoicing software can also help your AP team manage other types of invoices, leading to better cash flow management and decision-making.

5. Receive e-invoices from suppliers 

You might have noticed that some of your suppliers have already requested to send you an e-invoice. If this is the case, implementing a robust e-invoicing tool can help you immediately level up your supplier relationships by making it easier for them to submit their invoices to you.

6. Demonstrate your green credentials  

Traditional invoicing and AP involve a lot of paper. Although it might not seem like a big deal, it can begin to add up over time. E-invoicing on the other hand eliminates the need for using paper and reduces your company’s impact on the environment. In a world where stakeholders are choosing to do business with environmentally friendly business partners, this is an easy win.  

Of course, implementing an e-invoicing strategy will be a big step for any organization. To ensure a successful transition and optimal results, it’s essential to carefully consider several key factors. Here’s a look at some of your key considerations if you’re making the move away from outdated invoice processing.

What to consider before implementing AP automation software

Get your e-invoicing strategy up to speed: internal preparations and technology selections

• Establish internal commitment
  Your first consideration should be to secure buy-in from within your organization. Transforming to e-invoicing may involve changes in processes and technology, which can encounter resistance. To overcome this, you need to effectively communicate the benefits, cost savings, and efficiencies that e-invoicing will bring.  
• Assess your current AP process and set goals 
  You need to also identify areas of your AP process that will be impacted by AP automation and the transition to e-invoicing. This will likely include the likes of data entry, invoice routing, and invoice approval. When you’ve identified all the tasks and stakeholders, think about what it is that you would like to achieve. Only by knowing your goals can you develop a plan for doing so. 
• Onboard business partners 
  Transitioning to e-invoicing is not a unilateral decision; it involves your suppliers. Convincing them to embrace e-invoicing requires a collaborative approach. You can offer incentives, such as faster payment processing or reduced administrative burdens, to encourage their participation.
• Select appropriate e-invoice standards  
  E-invoicing offers various solutions, formats, and standards, each of which come with their own advantages and compatibility considerations. To make an informed choice, evaluate which format aligns best with your specific business requirements. 
• Incorporate scalability and futureproofing   
  As your organization grows, so will the workload of your AP team and the number of invoices that you both issue and receive. Ensure that your chosen e-invoicing strategy can scale efficiently to accommodate increasing demands.   
• Choose the right solution 
  There are lots of AP automation solutions available on the market. It’s therefore important that you spend enough time conducting research and choosing the one that’s right for your specific business needs. With Cevinio, for example, you can process both traditional paper-based/PDF and e-invoices, meaning that either way, you can benefit from the benefits that come with autonomous AP invoice processing. When deciding which tool is right for your business, consider factors such as organizational size, invoice volume, and your budget. 
• Think about implementation 
  When you’ve settled on an AP automation solution, you’ll need to think about how you are going to implement and integrate it. Other important actions at this stage include training staff on how to use the new solution and onboarding your suppliers. As this process can be complex, you will need a clear plan in place. 

Furthermore, consider the evolving landscape of technology and e-invoicing standards. A future-proof strategy should allow for flexibility and adaptation to changes in the industry and your business needs.

Wrapping up 

The transition to e-invoicing through AP Automation implementation is a strategic process. To be successful on your journey, it’s essential that you consider key factors such as internal commitment, supplier collaboration, scalability, and, above all else, that you’re implementing the right solution that meets the current needs and future goals of your business. 

This is where Cevinio AP Automation comes in. Our powerful solution has been designed to support both traditional and e-invoices in global corporations at scale. This helps to ensure that your business can fully benefit from the many benefits of autonomous AP invoice processing.  

If you’re ready to take the next step towards a more efficient, cost-effective, and sustainable accounts payable process, it’s time to get in touch with us.