Digitize or Die: Benefits of e-invoicing for SMEs
Up to 99.8% of all businesses in Europe are small and medium-sized companies. Following the market trends, it is essential for this profile of companies not to put aside the digital transformation and believe that it is only for big companies. In order to guarantee a sustainable future for SMEs, it is necessary to start immediately!
This digitization process is not a Herculean task, it is possible to take small steps towards digitization. One example of step would be the implementation of e-invoicing for the administrative management of the company.
Transition towards European standards
The private companies and administrations of the different states must adapt to the new international standards of e-invoicing. Consequently, SMEs across Europe are engaged in a process of digital transformation in the areas of optimisation, automation and process management in relations between companies (B2B), the public sector and suppliers (B2G), companies or individuals (B2C).
Since 2005, some European countries, such as Denmark, are already using e-invoicing compulsory in all transactions with the public administration. At the same time, other countries, such as Italy, are using e-invoicing as mandatory for transactions between private companies in the country since January 2019. This seems to be the future trend for many other European states.
The European E-invoicing Service Providers Association reported a significant growth of 23% in the number of electronic invoices processed during 2017. This means more than 1.9 billion electronic invoices between B2B and B2G. Although in a large majority of European countries the use of e-invoicing is not yet mandatory for B2B businesses, the increase in e-invoicing between private companies is a reality. The main reason for the increase is the significant reductions in management and time involved.
More and more suppliers, distributors or merchants are requiring SMEs to use an invoice program that allows a completely free and unlimited exchange of electronic invoices, with the advantages that this entails.
Benefits of an e-invoicing program
No existen motivos para seguir usando sistemas de facturación tradicionales en pleno siglo XXI. Condenados a desaparecer, las pymes deben afrontar la actual transformación digital y abrir las puertas a nuevos programas de facturación electrónica y a sus numerosos beneficios. Estos son sólo algunos:
- Reduction of costs and time. One of the main advantages of e-invoicing is the savings in invoice management expenses. Processing times are much shorter as a result of process automation.
- Caring for the environment. Another major reason for reducing costs is the saving in paper, ink, sheets, files and other materials involved in hand invoices. In addition, digitisation helps to minimise the environmental impact of companies.
- Reduction of tax evasion. E-invoicing allows greater control of tax evasion, helping to reduce the tax deficit.
- Instant and secure information. The use of an invoicing program provides detailed and instant information on the entire chain of production and marketing of companies. In addition, the possibility of having e-invoices provides a greater degree of security in the information management of entities.
- International presence. The compliance with the actual European regulation and the increased awareness in environmental care allows SMEs to follow international business trends, enter to foreign markets and increase their export offer.
In other words, any SME that aspires to grow and become a national or international company must implement an e-invoicing program as soon as possible. One of the most frequently used online invoicing software in Europe is B2Brouter, which offers free and effective specialized plans for small and medium-sized businesses