Trends in E-invoicing
Paper invoices are a relic of the past. Thanks to the ease and convenience that online electronic invoicing has offered both individuals and organizations it’s no surprise that it’s becoming more prominent when it’s time to send out a bill.
As e-invoicing continues to win over users, are some of the most interesting trends that will make e-invoicing even more accepted and efficient.
Governments across the world are officially headed to towards e-invoicing. Here in the States, for example, the Office of Management and Budget has set the end of 2018 as a deadline to comply. The European Union has mandated that Public Administrators must accept e-invoices by November 2018.
Latin America, however, will be one of the leaders in establishing government initiatives. Steve Sprague writes that Brazil has already “expanded its business-to-government mandates from e-invoicing to requirements that affect accounting, inventory management and personnel.” Sprague adds that “Mexico, Peru, Uruguay, Ecuador, Colombia and Chile introduced significant expansions of their e-invoicing and tax legislation” in 2015 as well.
In the coming year, we can expect “governments throughout Latin America are trending toward collecting even more detailed data – accounting reports, inventory records, etc., that allow officials to automatically verify purchase orders, invoices and goods receipts.”
Other initiatives include expanding compliance to scope from VAT to payroll taxes and taking steps to reduce tax evasion and fraud to maximize their revenues.
Businesses Will Realize the Benefits of Automation
Based on information from a Billtrust survey, Flint Lane, CEO of Billtrust, has said “that eInvoicing and ePayment drive real savings to the bottom line while also strengthening customer relationships.” Thanks to simplifying this process, businesses can get paid more quickly and reduce costs so that fewer employees are needed in the billing department. Besides improving cash flow and reducing expenses, automated invoices are secure and offer fraud protection.
CIvision adds “as more and more businesses begin to realize this, the transition to automated invoice processing will likely continue to grow.”
We’ll Enter a Real-Time Economy
As e-invoices start providing more accurate data, businesses and governments will use this information to head into a real-world economy.
Researcher for Billentis have stated that “Service providers or the receivers of electronic invoices have the chance for real-time validations. Invoice issuers immediately receive either rejects in the case of inaccurate invoice data or confirmation if the E-invoice successfully passed the automated validation.” People will also have instant access to to information like work flow, amounts, due dates, as well offer discounts.
In Latin America, real-time data is being used reporting and validation purposes.
Invoicing Will Go Mobile
This has been no big secret. Mobile eCash payments are taking over the entire industry. And, invoicing is no exception. We expect to have access to invoices so that they can be reviewed, sent, and approved – regardless of where we are currently located in the world. Having this 24/7 access will become a major consideration for people when selecting invoicing software. If the company is not mobile friendly, like featuring an app, customers may move on to a company that does offer such a feature.
In fact, the Chilean tax authorities are hard at work on an app that gives businesses the opportunity to submit tax documents via their smart phones.
Enter the Blockchain
The blockchain is a public ledger that records each and every bitcoin transaction. Recently, more people have taken notice to the potential and numerous uses that the blockchain presents. And, this includes e-invoicing.
By using blockchain technology, the speed of sending and receiving invoices will increase dramatically. In fact, transactions will occur almost instantly thanks to the removal of third party financial institutions.
The blockchain can also make cross-border transactions become more accessible since the transaction only involves two parties. Without third parties, there will be no more transaction fees or waiting several days or weeks for the funds to become available in your account. Transactions are also secure and can be easily traced.