7 Golden Rules of Electronic Invoicing

7 Golden Rules of Electronic Invoicing Dispelling the myths that hold companies back www.basware.com Basware ebook 7 Golden Rules of Electronic Invoicing Contents Executive summary 3 Rule #1: Not all operators are equal 5 Rule #2: Don’t forget what you’ve already got 7 Rule #3: Forget about formats 8 Rule #4: Adoption must cover everyone 9 Rule #5: Compliance is key 10 Rule #6: Make sure you’re aligned where it counts 11 Rule #7: Activate, activate, activate 12 There’s nothing holding you back 13 2 Basware ebook 7 Golden Rules of Electronic Invoicing Executive summary Compelling benefits The problem of myths Most businesses today understand the benefits of moving to electronic invoicing: In Europe alone, over 3 billion e-invoices will be sent in 2011. While this is obviously a huge number, it’s important to place it in context. In that same period over 30 billion • Better collaboration with suppliers and customers paper invoices will also be sent. A tenfold difference. • Improved cash flow • Easier compliance with negotiated contracts So if the benefits are clear and the pressures are mounting, why aren’t more businesses • Greater ability to take advantage of payment discounts making the switch? • Higher quality data and greater visibility • More efficient invoice processing In a word: myths. Too many companies believe that e-Invoicing is too complex or too costly or too new. They tend to have a view that might have been accurate 10 or 20 years The list goes on. ago, but is simply wrong today. The result is that they lack confidence in making the move (and, as a result, are missing out on all the benefits outlined above). And it doesn’t end there. External pressures mean that, for an ever-increasing number of businesses, the move to e-Invoicing is becoming a necessity rather than an option. In the following pages, we’ll outline our top recommendations for any business Now, more than ever, companies are focusing on reducing operating costs, responding embarking on an e-Invoicing program. Along the way, we’ll try to dispel some of the most to critical working capital targets and complying with legislative changes. And as common myths that hold companies back. customers make the move, they are demanding that suppliers do too. 3 “Electronic payment and purchasing has clear business benefits. The more you get connected with your customers, the more likely it is that they will stay with you.” Klaus Dieter Leifgen, IT manager at Toshiba TEC Germany Imaging Systems GmbH 4 Basware ebook 7 Golden Rules of Electronic Invoicing Rule 1 Not all operators are equal There are a number of e-Invoicing options on the market. Because a closed network is, by its very nature, not Often, different operators have different capabilities interoperable with other systems, you will only be able and run different models. And which option you choose will to deal with suppliers who are signed up to that network. have a significant impact on how you implement e-Invoicing This means that should you want to work with one that isn’t, within your business. you will either have to convince them to join or else create an exception outside the system. Plus, with a closed network, you Open vs closed are effectively locked in – the operator owns both ends Beyond the technical differences between operators of the supply chain and everything in between. This means is an over-arching philosophical one. And, before you switch that, should you need to change, it will be both costly and off, it’s a really big deal. It’s the fundamental difference time-consuming. between those who advocate a closed network approach and those who believe in an open network. One of the major determiners of e-Invoicing success is the ability to work with as many suppliers and customers In a closed network, the operator relies on developing as possible. This ensures both inclusiveness and scalability. a massive number of suppliers who are all equipped to work This is where the open network wins. in the way the network specifies. While this virtually guarantees interoperability among its own users, The biggest challenge with any e-Invoicing initiative is to get it’s an expensive model to maintain. This is reflected in the suppliers onboard (this is why we focus so much on making fact that subscription and transaction costs are often levied supplier activation as easy and painless as possible). An open multiple times. And, while closed network advocates would network enables you to work with virtually any supplier (and argue that with their systems everybody can move with other e-Invoicing operators). It has the minimum number to e-Invoicing quickly, the reality isn’t so appealing. of barriers to getting up and running (and adding more participants quickly and easily). This is why the vast majority of e-Invoicing operators favor the open, interoperable model. 5 Basware ebook 7 Golden Rules of Electronic Invoicing Rule 1 (Continued) Not all operators are equal A question of focus A further major difference between operators is one of focus. Metso journeys towards a global e-invoicing vision For some operators, e-Invoicing is a major component of their Global engineering and technology corporation, Metso, business. As such, they are more driven to ensure you get wanted a partner who could provide outsourced e-Invoicing the best service possible. And they work harder to activate services. Importantly, they wanted one who could help both suppliers because they know that this is core to success. suppliers in converting paper invoices into e-invoices and Metso’s customers in receiving e-invoices directly into their For others, e-Invoicing is simply an additional non-core processing systems. service. Their core businesses will tend to be in areas such as consulting or credit services. As a result, they may well Read the full story of Metso’s e-Invoicing journey at: treat e-Invoicing as a loss-leader and almost certainly won’t www.basware.com/resources/customer-success-metso give it the attention it deserves (and which you will need). This leads to lower stability in an area you will depend on day-in, day-out. Evolving solutions ”We wanted to work with a single partner that could help While all e-Invoicing solutions are (and should be) evolving us enable and evolve our e-Invoicing vision on a global scale. to deliver increasing value, there are different levels Basware has proved to be that partner — they listen and of maturity in the market. Where some operators have consult, and they have developed a deep understanding been around for over 20 years, others are newer. The more of our needs. Crucially, they have continued to develop established operators have proven technology and systems, their product and, like us, have international reach and they understand how to make e-Invoicing work for today’s capabilities.” businesses. They know both the benefits and the barriers that must be overcome. And they’ve done it all before. Soile Hiekkasalmi-Linna Development Manager at Metso 6 Basware ebook 7 Golden Rules of Electronic Invoicing Rule 2 Don’t forget what you’ve already got For many organizations, perceived complexity is a major barrier to implementing an e-Invoicing solution. They think they will have multiple issues spanning how well the new system will integrate with their current ones. They worry about file formats and how well one set of data will map onto another. The reality is far less scary. Fundamentally, all invoice platforms are capable of generating e-invoices. As long as you have an ERP system that can deliver structured data, you can begin e-Invoicing. Likewise, if you are already either scanning in paper invoices or receiving PDFs, these too can be easily converted and routed into your system.