eInvoicing is the transfer of invoice data from supplier to buyer in a structured electronic format. In the EU companies follow the PEPPOL structure to allow for automated data entry. The aim of einvoicing is to reduce the number of human steps involved in issuing, processing and paying an invoice.

Most businesses use digital invoicing usually in the form of PDF or Word documents. These types of invoices are easy for humans to understand but the data on the invoice must be manually entered into a processing system.

An electronic invoice contains data from the supplier in a structured format that the buyer’s financial system can automatically recognize and input without requiring any manual data entry from the accounts team.

The ease of processing invoices results in quicker processing times and improved cash flow.

Invoice processing and payments are more accurate as a result of less human errors.

Reduced costs compared hardcopy invoices, as printing, postage costs and storage costs are reduced.

Reduced carbon footprint with less paperwork involved in the process.

Account reconciliation is improved with the use of einvoicing as customers can combine multiple invoice payments into one and send payment details along with the payment to help simplify the reconciliation process.

Reduced invoice queries can also result in a better supplier-customer relationship.

Increased productivity and automation as einvoices are sent directly from the supplier to the buyers accounts payable system for processing, eliminating the need for manual data entry.

Increased productivity also results in reduced administration costs which can be substantial for accounts teams.

The reduction in processing time allows for quicker payments and can therefore allow buyers to take advantage of early payment discounts where possible.

Reduced invoice queries can also result in a better supplier-customer relationship.