A new study identifies a combined annual economic opportunity of $616 billion through productivity gains, faster payments, and reduced fraud if businesses adopt e-invoicing practices more effectively. Commissioned by Avalara Inc., the study was conducted with the Center for Economics and Business Research (Cebr) and covered the United States, United Kingdom, France, Germany, India, and Australia. Switching to e-invoicing delivers economic benefits for nations and operational efficiencies for businesses. In the U.S., full adoption could generate over $116 billion for the economy, with 83% of gains, $97 billion, coming from small and medium-sized businesses (SMBs). E-invoicing could add $16.9 billion in France, $15.1 billion in Australia, $13.3 billion in Germany, $11.2 billion in the UK, and $3.7 billion in India. On average, U.S. businesses save $15.16 per invoice received, amounting to $1.1 million in annual productivity gains per firm. In France, large businesses save up to 54.4 minutes per invoice, and in Australia, payments arrive 2.5 days faster. Across all markets, e-invoicing shortens payment cycles by 1.4 days, reduces fraud and tax fines by 30%, and saves 39 minutes per invoice. SMBs lag in adoption, with only 37% reporting full implementation. Barriers include staff training and integration complexities, impacting nearly half of respondents. However, 95% of firms using manual invoices are aware of e-invoicing, and 73% expect to adopt it within five years. Faster payments lead to stronger cash flow, with firms seeing a 5% improvement in payment speeds. U.S. firms have unlocked over $14,000 annually in cash flow improvements, while Australian firms reported annual gains of $649,200. UK firms experienced a 4.8% drop in late payments. E-invoicing is critical in fraud prevention, with 44% of businesses hit with tax fines and 34% experiencing invoice fraud. Firms leveraging e-invoicing reported fewer incidents, reducing tax fines by 27% and fraud by 30%. Policy support is growing, with over 50% of businesses supporting legislation to require e-invoicing. France is preparing for a 2026 mandate, and Germany is actively taking steps toward compliance.
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E-Invoicing Could Unlock $616 Billion in Global Economic Gains
A new study identifies a combined annual economic opportunity of $616 billion through productivity gains, faster payments, and reduced fraud, if businesses more effectively adopt e-invoicing practices. Commissioned by Avalara Inc., a provider of modern tax compliance automation, the study was conducted in partnership with the Center for Economics and Business Research (Cebr), and covered the United States, United Kingdom, France, Germany, India, and Australia. n nEconomic & Business Value n nThe report reveals that switching to e-invoicing delivers measurable economic benefits for nations, as well as financial and operational efficiencies for businesses. In the U.S., full e-invoicing adoption could generate more than $116 billion for the economy, with a staggering 83% of economic gains, $97 billion, coming from small and medium-sized businesses (SMBs). Elsewhere, e-invoicing could add $16.9 billion in France, $15.1 billion in Australia, $13.3 billion in Germany, $11.2 billion in the UK, and $3.7 billion in India. n n“E-invoicing isn’t just a compliance solution, it’s a growth engine for global economies and businesses,” said Ross Tennenbaum, President at Avalara. “Our research with Cebr proves that the faster we help businesses transition to electronic invoicing, the more we can do to help unlock billions in productivity and day-to day efficiencies.” n nOn average, U.S. businesses that adopt the technology save $15.16 for each invoice received. This amounts to $1.1 million in annual productivity gains per firm. In France, large businesses have been able to reclaim up to 54.4 minutes for each invoice, significantly reducing processing time and freeing up finance teams to do more effective tasks. Down under, Australia leads in the payment acceleration benefits. Firms have seen payments arrive up to 2.5 days faster, a 15% improvement on paper or more manual digital processes. n nAcross all six markets, e-invoicing shortens payment cycles by an average of 1.4 days, reduces fraud and tax fines by around 30%, and saves approximately 39 minutes over the process for each invoice. n nSlower SMBs n nWhile larger firms have embraced e-invoicing, SMBs lag with only 37% reporting full e-invoicing adoption. This reliance on manual methods could cost smaller businesses both time and money. n nUnfortunately for SMBs, barriers to adoption remain. Notable difficulties include staff training and complexities around integration, impacting nearly half (43%) of respondents. Encouragingly though, momentum is building worldwide. Most firms (95%) using manual invoices are aware of e-invoicing, and three-quarters (73%) expect to adopt the technology within the next five years. n nFaster Payments, Stronger Cashflow n nA key reason for this momentum shift is the time savings associated with e-invoicing. By making payments typically 5% faster, firms will see substantial cashflow advantages. Across the entire payment process, the research found that U.S. firms have witnessed an 8% acceleration in payment speeds, and that large businesses have unlocked over $14,000 annually in cashflow improvements. In Australia, where per-invoice savings average $13.67, firms reported annual gains of $649,200 through e-invoicing adoption. n nUK firms that have adopted e-invoicing have also benefited, experiencing a 4.8% drop in late payments—the biggest improvement across all six of the markets. Interestingly, time savings per invoice were more modest in India, at 6.8 minutes for accounts payable, even though the country has the highest e-invoicing adoption rate. Despite this more limited impact, 64% of Indian businesses remain satisfied with the positive impact of e-invoicing adoption. n nLower Risk, Greater Confidence n nFurthermore, e-invoicing is critical in fraud prevention and security, boardroom priorities in today’s rapidly evolving business environment. Over the past year, 44% of businesses were hit with tax fines and 34% experienced invoice fraud. That’s not the entire picture, as businesses faced $23,500 on average for tax fines and $18,100 for fraud losses. Firms leveraging e-invoicing reported far fewer incidents—only 20% experienced fines or fraud. E-invoicing’s power to maintain financial operations and regulatory compliance helps businesses reduce tax fines by 27%. It also shores up businesses from threats, slashing fraud and data breaches by 30%, and lowers the number of lost invoices by 40%, providing businesses with even more operational confidence. n nPolicy Support Grows n nWhile there are no national mandates in the U.S. or UK yet, more than 50% of businesses support legislation to require e-invoicing. In Europe, France is currently preparing for a 2026 mandate, with 41% of firms actively taking steps. And in Germany, half of respondents (49%) do not feel fully equipped for the incoming legislation. Although, many have developed plans (42%), invested in technology (39%) or training (30%). n nToday’s research highlights the urgent case for businesses and governments to implement e-invoicing, paving the way for greater efficiency, security, and transparency.