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Sage research: E-invoicing could unlock C$82 billion for Canada

  • Only 7% of Canadian businesses use e-invoicing despite its potential speed up payments and unlock cash flow.
  • Approximately C$103 billion is tied up in overdue invoices.
  • Sage calls for a national consultation on e-invoicing to help Canada establish a clear, standardized path to wider adoption.

TORONTO (October 19, 2026) – Sage (FTSE: SGE), the leader in accounting, financial, HR, and payroll technology for small and mid-sized businesses (SMBs), today released new research showing that Canada could unlock an estimated C$82 billion in annual productivity gains through wider adoption of e-invoicing. Yet only 7% of Canadian businesses currently use the technology.

The findings also highlight the impact of payment delays on Canadian businesses. An estimated C$103 billion is tied up in overdue invoices, while broader e-invoicing adoption could release approximately C$21 billion in trapped cash flow back into the economy. 

Unlike emailed PDFs or paper invoices, e-invoicing enables invoice data to move automatically between businesses' and customers’ accounting and finance systems, reducing manual processing and improving the flow of information between trading partners. 

Released during Small Business Month, the research highlights the opportunity to help Canadian businesses spend less time on administration and more time focused on growth. The findings come as governments and industry leaders look for practical ways to improve productivity, strengthen competitiveness, and support greater adoption of digital technologies.

Based on a survey of more than 2,000 Canadian businesses, the study found Canada trails other markets in e-invoicing adoption, compared with 17% of businesses in the United Kingdom and 32% across Europe already using e-invoicing.

“For small and medium-sized Canadian businesses who underpin our economy, time savings lead to real financial impact: too many leaders are spending valuable time on administrative tasks that stall the financial process,” said Cinzia Bazzo, Managing Director in Canada, Sage. “E-invoicing is a digital tool that will have a tangible impact for businesses, enabling them to get paid faster, improve cash flow and focus their energy on growth. That's exactly the kind of practical digital adoption Canada needs more of." 

According to the research: 

  • If all Canadian businesses adopted e-invoicing, the time savings could be worth approximately C$82 billion annually, equivalent to roughly 2.5% of Canada's GDP.
  • Canadian businesses currently hold an estimated C$103 billion in overdue invoices, with adoption of e-invoicing capable of releasing approximately C$21 billion back into the economy.
  • Half of businesses say late payments negatively affect cash flow, while 27% report they prevent investment in future growth.
  • Seventy-four per cent of business owners and senior leaders deal with invoicing and payment issues at least monthly, and 38% do so every week.
  • Forty-two per cent of businesses have never heard of e-invoicing, and only 14% say they are familiar with it.

The findings suggest that awareness remains one of the greatest barriers to adoption. Businesses identified education, implementation support, and financial incentives as important factors in encouraging greater uptake of digital invoicing solutions. The research also found businesses are nearly evenly divided on whether Canada should introduce a national e-invoicing mandate, with many preferring incentives over regulation alone.

For Sage, e-invoicing represents an important part of the broader digital infrastructure needed to help businesses embrace emerging technologies, including artificial intelligence. The findings point to a clear opportunity for Canada to strengthen productivity and unlock growth. Sage is calling on the federal government to begin a national consultation on e-invoicing and work with industry, provinces, standards bodies and the CRA to develop a clear path forward. By aligning with internationally recognized standards and supporting phased adoption across the economy, Canada can help SMEs reduce administrative burden, improve cash flow, combat invoice fraud and build the digital foundations needed for long-term competitiveness and AI readiness. Sage has supported similar efforts internationally, contributing to the UK government's e-invoicing consultation and ongoing HMRC working groups, as well as working directly with the French government on testing and implementation of its e-invoicing system. 

To learn more about the e-invoicing research, download the PDF. 

About Sage

Sage creates the confidence businesses are built on. Our finance, HR and payroll technology supports the critical work millions of small and mid-sized businesses and accountants depend on – helping them navigate complexity, reduce risk and make better decisions. As AI transforms how that work gets done, Sage provides the essential platform for the people who need to get it right, bringing together trusted technology, deep domain expertise and the connected services they rely on every day. We extend that commitment by using our time, resources and experience to help create opportunity in the communities where we live and work. 

Media contact: [email protected] 

Survey Methodology

Commissioned by Sage, Strand Partners surveyed 2,002 Canadian business owners and senior leaders online on behalf of Sage between September 22 and 30, 2026, with results weighted to Statistics Canada business counts by business size, sector and province. The C$82 billion and C$21 billion figures are modelled estimates based on the survey and official statistical data.

Notes to editors

E-invoicing is the direct exchange of invoice data between a supplier's and customer's financial or accounting systems using a standardized digital format. Unlike paper invoices or emailed attachments, e-invoices can be automatically received, processed and validated without manual data entry, helping businesses reduce administrative work, improve accuracy and streamline payments.

A PDF invoice is a digital document that still requires people or software to manually review, enter or extract information before it can be processed. E-invoicing automatically transfers structured invoice data directly between systems, enabling faster processing, fewer errors and more efficient payment workflows. 

Sage research found that awareness remains one of the biggest barriers to adoption in Canada. 42% of businesses surveyed had never heard of e-invoicing, while only 14% said they were familiar with it. Businesses also identified education, implementation support and financial incentives as important factors that could encourage wider adoption.

E-invoicing helps accelerate payment processes by allowing invoice information to move directly between supplier and customer systems, reducing delays caused by manual handling, data entry errors and paper-based processes. By improving the speed and accuracy of invoicing, businesses can strengthen cash flow and spend less time chasing payments.

Sage research estimates that approximately C$103 billion is currently tied up in overdue invoices across Canada. The findings suggest that wider adoption of e-invoicing could help release approximately C$21 billion in trapped cash flow back into the economy by reducing payment delays and improving invoice processing.

According to Sage research, if all Canadian businesses adopted e-invoicing, the resulting time savings could be worth approximately C$82 billion annually, equivalent to roughly 2.5% of Canada's GDP. By reducing time spent on manual invoicing and payment administration, businesses can focus more resources on serving customers, investing in growth and improving competitiveness.

A national e-invoicing framework would establish a standardized way for businesses to exchange invoice data electronically. By reducing manual processes and improving payment efficiency, it could help businesses get paid faster, improve cash flow and spend less time on administration. Sage research found wider adoption of e-invoicing could unlock approximately C$82 billion in annual productivity gains for Canada.