Sage finds small European companies can unlock €13,500 in annual savings with e-invoicing 

6 June 2024 - Sage, the leader in accounting, finance, HR and payroll technology for small and medium-sized enterprises, has unveiled research which demonstrates how e-invoicing can revolutionise small business efficiency, enhance cash flow, and drive significant productivity gains. This comes as millions of small and medium enterprises (SMEs) across Europe prepare to adopt the technology.  
 
According to the findings, adopting e-invoicing can lead to significant annual savings of around €13,500 for small businesses by nearly halving the time spent processing invoices. Research of over 9,000 SMEs published in Sage’s report - E-Invoicing: Paving the Way to a Connected, Real-time Economy - highlights that a staggering 77% of business leaders actively intervene monthly to ensure timely payments, with 40% doing so weekly.  
 
E-Invoicing dramatically reduces these efforts by improving information flow and minimising invoice-related delays. The financial incentive also opens opportunities for SMEs to invest in further technological advancements.  

Enhancing productivity through e-invoicing in Europe’s digital economy  

Sage’s report published today outlines a potential increase in EU labour productivity by up to 2.6% annually if SMEs redirect their time from administrative tasks to higher-value activities. The shift could mark a substantial improvement in Europe’s broader economic growth.  
 
The adoption of e-invoicing serves as a stepping stone for SMEs to embrace broader digital transformation. An overwhelming 90% of businesses reported purchasing additional technologies following their switch to the technology, while 22% went on to invest in AI for financial tasks.  
 
Derk Bleeker, Chief Commercial Officer at Sage, emphasises the need for a cohesive digital and economic policy that places e-invoicing at its core. "This isn't just about preventing SMEs from wasting time handling and chasing invoices; it's about revolutionising how businesses operate and compete."

As e-invoicing becomes a critical part of the digital infrastructure within the EU, it's essential for policymakers, tech providers, and SMEs to come together to fully leverage this technology's potential. With proper support and guidance, European SMEs are well-positioned to thrive in a connected, real-time economy.”  

Addressing challenges and building awareness  

The top concern for SMEs (55%) is integrating the technology with existing accounting or finance systems. Awareness is also an issue – less than a third (28%) of SMEs in European markets are familiar with e-invoicing and aware of its benefits, despite a majority of these countries like France and Spain having upcoming mandates in place from 2026.  
 
Examples from Singapore, Australia, and Finland highlight international success, with reductions in late payments by up to 20% after adopting e-invoicing, showcasing the global applicability and benefits of this technology.  

Collaboration from public authorities, civil society players and companies like Sage will be key to inform, educate and support the EU’s SMEs in realising the immense potential of the technology.  
 
Sage is calling on European governments to work closely with the tech sector and business communities to create a technology-friendly environment that supports the seamless integration of e-invoicing. Such collaboration will be crucial in ensuring that SMEs do not fall behind in the digital transition.  

Continued support from Sage  

E-Invoicing is already integrated within the Sage Network, ensuring that SMEs can meet the EU's digital reporting requirements effectively. Sage continues to support governments and businesses in transitioning towards a more digital, efficient, and competitive future.  

Download our new report, and hear from Sage customers and key business leaders within a video. 
 

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Notes to editors    
Sage conducted two surveys in April 2024 of 9,701 businesses with 1- 999 employees. The survey covered seven European markets (Germany, France, UK, Ireland, Portugal, Spain and Belgium) with low e-invoicing usage, as well as Australia, Finland, and Singapore, which have high e-invoicing usage. Results were weighted to the most recently available business census in each market. Strand Partners is a member of the British Polling Council, and all data was collected under its rules.  
 
In partnership with economic consultancy Afi, Sage modelled the potential economic effects of e-invoicing in Europe and the UK.  
 
The analysis revealed significant variations in invoicing challenges and e-invoicing advantages depending on company size. As a result, Sage categorised many of the findings by small (1 employee to 49), medium (50 to 249), and large SMEs (250 – 999). This is to ensure larger SMEs were captured who may be in early stages of e-invoicing mandates.