More than ever, companies are finding themselves increasingly looking for ways to cut costs and increase efficiencies. One solution that is able to achieve both of these is e-Invoicing – the process of sending and receiving invoices electronically. However, as with every new process, companies need to know the facts.

From my experience as founder of OB10, the global e-Invoicing network, I have come across four common reservations about e-Invoicing from potential clients which I feel need to be addressed.

Myth One: “I’ve been told e-Invoicing can be a costly and difficult implementation process.”

Today, operating costs seem to be one of the first things businesses look to reduce when faced with a slow cash flow. There are a number of things that could be limited or cut altogether, one of which is the laborious practice of processing paper invoices. An answer to this costly procedure is e-Invoicing which not only speeds up the process, but will improve efficiency and reduce costs throughout the invoice to pay process.

The innovation of e-Invoicing can create a streamlined process that is implemented and managed with ease. An e-Invoice can be processed in a number of ways, as they can now be integrated with electronic invoice presentment and payment (EIPP) workflow systems or uploaded directly into a user’s ERP(enterprise resourcing planning) or accounting system. There is therefore no need for big spending on new software, meaning the cost of implementation is minimal. The savings, on the other hand, are substantial, both to the supplier and the accounts-payable departments.

Myth Two: “My suppliers won’t want to move to e-Invoicing.”

An e-Invoicing project can only be successful if suppliers participate. Organisations may be concerned that suppliers don’t have the infrastructure in place to undertake e-Invoicing, or that only large suppliers can be supported. However, this is not the case. Suppliers have realised the increased reliability and efficiency that accompanies e-Invoicing in comparison to that of paper invoicing. Businesses are bringing their accounts payable and receivable departments up to date and choosing to convert from paper invoicing to e-Invoicing. All the while suppliers are enjoying the benefits of quicker delivery and speedier payment. At OB10, we handle the whole supplier enrolment process making the procedure of converting suppliers to e-Invoicing as efficient and pain-free as possible (for all parties involved).

Myth Three: “I can’t change to e-Invoicing as it is a legal requirement to archive a hardcopy invoice for account reporting”

In the EU specifically invoices can be stored electronically as long as they are easily accessible when required. OB10 provides an electronic archiving service called OBarchive which complies with local and international regulations and securely stores your transactions online so you can access them at anytime.

Archiving in this way saves time and costs. For example, in the UK, companies are required to store invoices for six years, for other countries such as Germany the requirement is for 10 years. Not only do they need to be archived, but also easily retrieved for tax audit purposes. For companies that receive hundreds of thousands of paper invoices, the costs and logistical burden on archiving and being able to retrieve an invoice, if required, is huge.

Myth Four: “I still have to make sure the invoices meet tax and VAT regulations.”

One persistent problem for the Accounts Payable team is ensuring that all invoices added to the system comply with the tax and VAT regulations of that region.

OB10 takes care of this process for you. We work closely with local tax offices and leading independent advisors to make sure all local and cross-border transactions are tax and VAT compliant. This saves you the effort and cost of dealing with the complexities of international tax legislation. It’s also important that your supplier works closely with independent tax auditors to ensure they are up to date and remain compliant.

Stefan Foryszewski, Co-Founder & Senior Vice President, OB10