This directive is part of the Digital Agenda for Europe initiative, which is a pillar of the EU 2020 strategy. EU 2020 is a growth strategy that is trying to ensure the EU remains one of the major players in global sustainable business and make sure that the European economies emerge from recession stronger than ever and more unified. This Digital Agenda initiative is looking to boost the EU economy by harnessing digital technologies and maximising their growth potential within the member state economies. By creating smart economies the EU is looking to take advantage of growth opportunities that technology is offering in a digital age.
e-Invoicing to become the standard for conducting business
From the first of January 2014 the Mexican government will demand that invoices are sent electronically for all commercial transactions. This follows a worldwide trend of governments enforcing electronic invoicing as the standard way of conducting business.
Worldwide reports consistently illustrate the growth of e-Invoicing. e-Invoicing is not new to Mexico, they have had it for the last seven years, but with the proposed legislation it will become mandatory to send e-invoices as a receipt of all business transactions. The law will affect any company that earns $20,000 or more annually and will come into effect on January 1st 2014. Companies that don’t comply with the legislation will be subject to heavy penalties and could face criminal fraud charges. The announcement of the legislation has meant a major scramble by companies to prepare themselves and their back office systems for the January deadline.
The new Billentis report illustrates why e-Invoicing is a critical solution for businesses looking to streamline their processes, maximise their opportunities and differentiate themselves from the competition.
The proven benefits of e-Invoicing are making it the solution of choice for businesses; the report shows that businesses that have automated their processes are taking advantage of huge savings and giving themselves a competitive edge in their industry. Bruno Koch highlights the savings that can be made in the report and gives practical advice about how to implement such a solution.
From our internal research we have found that the biggest challenge facing businesses is the high cost of processing paper invoices. Cutting costs remains a major priority for all businesses and the Billentis report highlights how e-Invoicing can do that while also improving your customer’s satisfaction.
Below are two diagrams that illustrate the potential savings to the sender and recipient of an electronic invoice. Receiving and processing an invoice is an expensive practice for businesses and Koch has broken down the substantial savings that can be made at both ends.
Is your company doing its bit for the environment?
If you have automated your invoice processes and eliminated the paper trail from your business then you are and well done! By switching from a manual paper-based system to an electronic delivery system, you are not only saving money and gaining a competitive edge in your industry but you are also lowering your carbon footprint and helping the environment.
Recently Billentis published their “E-Billing/E-Invoicing: International Overview & Forecast” for 2013, which was carried out by market analyst and e-Billing expert, Bruno Koch.
Koch’s forecast for e-Invoicing and e-Billing in 2013 is upbeat; it is seen as one of the major areas of growth for the European economy. He’s estimated that the service provider community will generate an e-Billing/e-Invoicing turnover of about €1.7 Billion.
Read here Celtrino’s Managing Director Ken Halpin discussing his views on the PEPPOL pilot project that Celtrino are running with the HSE. This public procurement project is being run in conjunction with the European Commission using the PEPPOL (Pan European Public Procurement Online) initiative which looks to streamline processes in the public sector through e-Invoicing to facilitate greater cross border commerce among EU member states. Minister for State for Public Service Reform Brian Hayes knows that there are huge efficiency savings to be made by adopting e-Invoicing as a standard across the public sector.
2012 saw Celtrino grow and adapt in the e-Commerce world
In 2012 Celtrino increased its market share while positioning itself for future growth that will consolidate its current position as the leading B2B e-Commerce provider in Ireland and allow the company to explore new markets abroad.
For this blog we talked to Managing Director Ken Halpin about Celtrino’s year in 2012 and looked briefly at some prospects for 2013,
“In a very challenging economic climate for our customers, Celtrino successfully strengthened its position in each of the verticals within which it operates. In addition, we increased our levels of investment in people, processes, infrastructure and services across the company to better serve our customers and the needs of the marketplace.”
Tomorrow Minister Brian Hayes will make a keynote address on Ireland’s future approach to e-Procurement and e-Invoicing in Ireland. This follows the recent successful completion of a multi-stakeholder pilot e-Invoicing (PEPPOL) project. The Irish public sector is fast playing catch-up with much of the rest of Europe who have already made binding policy decisions in these areas in advance of EU wide changes that are coming down the track.
Ken Halpin at PEPPOL Conference in Rome.
The European Commission estimates that the transition to e-Procurement and e-Invoicing within the EU by the start of 2015 will result in public sector savings of €100 billion (that’s a saving of about €1 billion annually for Ireland). In addition, to realising savings in the cost of goods and services purchased, the Irish Government will reduce payroll costs through productivity gains.