The scope and demand of CFOs and finance executives is ever changing and there is now a clear focus on strategic change to deliver cost savings and improved efficiencies. To adapt to this dynamic environment, executives are actively managing their supply chains, utilising elements at their disposal to transform vulnerabilities into competitive advantages.
By introducing eInvoicing, finance executives can reduce costs, increase efficiency and benefit from newly found competitive advantages.
• reduces unnecessary manual work
• leads to greater efficiency and control
• improves security
• offers shorter credit periods and
• reduces environmental impact
A major step in increasing adoption of eInvoicing is EU Directive 2010/45/EU, which was implemented by all Member States on 1 January 2013. This directive amends an earlier directive regarding the rules on invoicing and value added tax.
This directive aims to increase the use of electronic invoicing and to reduce the associate regulatory burden on business by treating paper and electronic invoices equally.
From 1 January, a company can deploy a wide range of technologies to automate business processes where the business controls, not the technology, create a reliable audit trail between an invoice and a supply of goods or services and guarantee the authenticity, integrity and legibility of an invoice. The requirement to use EDI or AES, or notify Revenue of any alternative method, will be removed.
If you have any questions on Adoption within your organisation or any other eInvoicing queries, please call us on 01 2859656 or email email@example.com.
2 full working days a month on financial processes
Can you believe the average SME employee spends 16 hours and 53 minutes per month on financial processes, equating to two full working days on activity unrelated to their role.
It appears that the lack of clear procedure for receiving and sending invoices is also causing disconnect among business owner and employee expectations due to the invoice payment process. According to business owners, it takes European businesses 8 days and US businesses 4 days to complete a payment after receiving and processing an invoice. Yet, according to employees, it takes European businesses 10 days and US businesses 7 days to complete a payment after receiving an invoice.
The lack of clarity surrounding invoicing procedures is further exacerbated by the fact that a significant percentage of businesses are dealing with invoicing manually, adding further time and resource to the financial process. 64% of European SMEs manually invoice customers (compared to 40% in US), while 77% manually approve / pay purchase invoices.
Adopting an eInvoice solution can assist in:
• Reducing these 2 days to .5 day
• Allow reallocation of your resources
• Switching from paper to electronic can offer potential saving of €5 per invoice!
Source www.fortmilltimes.com Published: Wednesday, Feb. 13, 2013 / Updated: Wednesday, Feb. 13
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