Journal of Information Systems Engineering and Management

Journal of Information Systems Engineering and Management, 2024 - Volume 9 Issue 2, Article No: 25009
https://doi.org/10.55267/iadt.07.14746

Published Online: 23 Apr 2024

Views: 139 | Downloads: 112

Digital invoicing, or electronic invoicing (E-invoicing), has emerged as an important driver of corporate digital transformations that directly impact the bottom line. Top multinational corporations (MNCs) have rolled out E-invoicing systems and are reaping the benefits in terms of significant cost savings. Doing away with manual invoicing by automating preparation, distribution, and processing, E-invoicing has delivered a wide range of cost reductions: Invoices are processed at up to 90% less cost than paper invoices; the cost for resolving exceptions and disputes has dropped as much as 70% and duplicate payments now stand at around 0.2% or lower, for example. In addition, extended payment terms have become a source of operating cash flow, thanks to faster invoice approval and payment; MNCs' working capital has been optimized through early-payment discounts that deliver additional cost savings. Compliance has also improved, with E-invoicing ensuring tax compliance and dramatically reducing invoicing fraud, which has already saved MNCs millions of dollars in fines and penalties. Efficiency, transparency, sustainability, and money; a tall order for any solution, yet one which E-invoicing is delivering. With the dawn of the digital age, expect to see E-invoicing delivering even greater savings and efficiencies for MNCs and corporations around the globe.

E-invoicing Cost Reduction Multinational Corporations

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