Join the Community

22,753
Expert opinions
43,912
Total members
370
New members (last 30 days)
188
New opinions (last 30 days)
28,932
Total comments

EU eInvoicing: Digitally transforming finance to avoid losing B2B and public sector contracts

It has been more than a decade since the European Union’s eInvoicing directive, and change is now sweeping across Europe. With implementation beginning in earnest across EU countries,  there is no hiding place for businesses that put off the digital transformation of their finance department.

While the exact dates will vary across EU states, the shift is well underway. For instance, Germany has already made it mandatory for businesses to accept eInvoices, and France will be following suit in September 2026. The UK is slightly behind the EU – currently at the consultation stage – but is likely to follow suit in the next few years.

The benefits are clear: eInvoicing allows for more efficient processing, reduced errors, cost savings, streamlined operations and faster payments, enhanced reporting and compliance, greater scalability, and ultimately compatibility across the entire continent. In turn, businesses that fail to adapt will find themselves cut off not only from B2B transactions, but also for Business to Government (B2G) contracts – meaning failure to adopt will be particularly damaging to businesses that serve the public sector.

Digitally transforming finance

Businesses simply cannot afford to fall behind – their operations could be seriously restricted, and may struggle to continue. At the same time, adapting to eInvoicing represents a perfect opportunity to transform the finance function. So what are the key steps organisations can follow to ensure success?

Although time is of the essence, it is important to remember that adopting e-invoicing processes isn’t instant and can take months or even years to complete. Therefore, businesses need to balance speed of transformation with making sure they do a thorough job that will bring real benefits. Simply digitising existing processes does not go far enough. Businesses need to step back and take an objective look at the current structure and workflows, and consider whether they could be redrawn or updated.

This means reviewing core processes behind invoicing, and analysing the streams of data they produce – with the goal of identifying any previously unseen operational efficiencies. This should cover the entire invoicing process from end to end: from the way invoices are received, signed off and processed, through to how the business guarantees they are accurate, efficient, and reduce the risk of fraud.

Driving progress with tech

It’s particularly important to take an objective look at the technology that is currently in place, stepping back to consider whether there are any potential opportunities to streamline and create a solid core structure to build on. Organisations should also have an open mind when it comes to emerging technologies, being willing to push beyond their comfort zone to move things forward.

Businesses should harness the power of cloud services to cut the complexity and cost that can come with implementing digital change. They can also draw on automation and machine learning to cut out manual processes like filling in forms and passing invoices along for approval. This not only lightens the burden on finance teams, but also reduces the risk for human error – as well as increasing accountability by identifying invoices that are either non-viable, or could potentially be fraudulent.

As AI continues to mature, use cases are emerging across the finance function. For instance, AI could be used for prioritising which bills should be paid first or, on the flip side, to ensure late payments are followed up with so they are paid as quickly as possible. AI could even be used to take an audit of partners to analyse which are the most financially stable.

Ensuring a strategic approach

It’s important to avoid short-termism. Any transformation needs to happen in time to meet eInvoicing deadlines, but businesses should guard against the risk of rushing through the process, or of failing to go far enough.

From the get-go they need a strategic approach, ensuring the transformation benefits the organisation over the longer term. At this point they should consider drawing on the insight of a trusted partner – gaining expert insight on the application of technology across finance to avoid common pitfalls and set themselves up for maximum return on their investment.  

Make the move, make it pay

Of course, time is of the essence – month by month, the eInvoicing roll out is continuing across Europe. Eventually, businesses that cannot adapt will find themselves cut off from entire audiences and markets, doing serious damage to the bottom line. While it’s true late adopters need to move quickly, they also need to make their digital transformation pay. By taking an objective review and considering where they could improve on existing processes – plus drawing on the power of emerging technologies – businesses will be positioned for long-term success.

External

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.

Join the Community

22,753
Expert opinions
43,912
Total members
370
New members (last 30 days)
188
New opinions (last 30 days)
28,932
Total comments

Trending

James Strudwick

James Strudwick Executive Director at Starknet Foundation

Reclaiming the Inclusive Spirit of Web3

Now Hiring