The key to boosting the economy? E-invoicing

CEO, Basware Corporation

At a time when boosting the economy is on everyone’s mind, we are all in search for solutions and new ways to change the status quo.
 
To accomplish this, we need to start by looking at where we are today.

We are living in a trillion dollar world economy with a high-volume of global commerce circulating between companies. That’s a clear indication of a healthy business to business transaction climate. However, when you look closer, you quickly see there is a major gap to be filled. A chance to pave the way for a solution that will have a fundamental impact on how the economy can be boosted. This gap filler is e-invoicing.

A huge amount of bills and invoices are sent every year, but only a fraction are expected to be paperless. This is astonishing when you think about the extra time and effort it requires to deal with paper-based invoices, compared to an automated system.

It’s high time to realise that e-invoicing is the future. The positive trends are there that demonstrate change in mindset and approach. Politicians and central bankers are displaying a growing interest in e-invoicing and automation initiatives. On this level, organisations see the potential to boost the efficiency and outlook of economies. Now other companies need to follow suit.

For e-invoicing to be truly effective on a global scale, it needs to be seen as ‘business as usual’ for organisations. Just the same way we feel about the Internet today, compared to ten years ago.

Adoption of new technologies doesn’t happen with a simultaneous big bang across the globe. Some businesses and countries are faster in adopting and understanding the change. Industries with an active supplier ecosystem are often at the forefront of e-invoicing.

Just look at the automotive industry, where we work with numerous leading brands. Daimler has tens of thousands of suppliers but only a fraction use Electronic Data Interchange (EDI). We introduced e-invoicing to Daimler’s wider supplier network to demonstrate the benefits of electronic financial processes, and it has made a marked difference to its business.

The evidence is there. E-invoicing is making a huge difference to organisations and others need to look to the shining examples in the industry and follow this path. Then cash-flow will be easier for SMBs and Big Business, which will trigger further investments. That’s how you boost an economy.

 

Category: E-Invoicing