Technology Revolution In Invoicing
Simplifying commerce transactions via the help of blockchain holds immense protentional to uphaul current transactions and move into a world where all transactions are transparent and efficient.
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Driven by the developments in internet connectivity, technology and cloud-based systems, need for electronic form of invoices and purchase orders has grown multifold. One of the main triggers for this, is the growth of several internet industries and the resultant increase in digital transactions. In fact, the e-commerce industry, has evolved into a $2.3 trillion industry, making it one of the largest contributors to digital commerce and fintech adoption.
With digital transformation comes the matter of operations. While operations and finance are interlinked, their workflows exist in isolation. Existing ERP systems are primarily built for a single enterprise workflow, leading to most of this data lying fragmented across these enterprises, hindering the seamless processing of payment cycles. Moreover, this also prevents companies from gaining access to important insights on their business.
Invoicing processing, which is an important facet of business growth, is still laborious in nature and most often requires significant human intervention. Both large and small enterprises face this challenge and need to adopt better technology solutions such as blockchain, to ensure accurate, timely and standardized management of transactions.
How e-invoicing can reduce risk in financial transactions
Taking into consideration the complexity of invoicing in an era of real-time updates, the opportunity for fraud has escalated. The order of the day is to find a solution that requires minimum human intervention, where invoices can be exchanged & verified by machines.
There are many factors to take into consideration while adopting an e-invoicing system into the structure of an organisation. Internally, it is important that all stakeholders are in agreement, as sharing of invoices is just one part of the problem. In a conventional organisation, any invoice will have to get approvals from various departments such as logistics, operations, quality control, etc. even as it communicates with the third-party vendor. E-invoicing not only brings down the number of steps in the process, but also the overall cost. Introducing a blockchain platform could bring down the cost of handling the entire process of invoicing by around 70%.
The other, equally important aspect to consider is the authenticity of the document which can be cleared now with a simple digital signature to standardize compliance procedures. With jurisdictions shifting their focus to more transparent systems of vetting tax declarations and customs, e-invoicing will soon become a mandate that will provide a view into company data.
Unleashing the power of e-invoicing through blockchain
Financial systems have been reinvented by blockchain technology. With a deep understanding of how commerce and finance are working in isolation, blockchain can be used as the unifying platform.
Why blockchain? It is immutable, it is secure, it is anonymous, it is transparent and even more important, it has already penetrated financial systems. As financial systems are driven by commerce, recording transactions related to commerce on blockchain automatically unifies both these systems. Blockchain creates a very secure environment despite being a peer-to-peer technology platform which is quite public as it creates an audit trail, which ensures there is no link broken in the entire process, making all transactions transparent for all stakeholders.
Today’s fintech deployed in financial processes aims to speed up payment transfers, lower the remittance barriers and a lot more revolving around payments. However, commerce is so much more than just payments, making the need for blockchain all the more necessary. To support a digital economy, invoicing requires a blockchain-driven innovative solution that maintains a correlation between the financial systems and the relevant trade, increasing operational efficiency and business growth.
Technology is transforming the lives of each individual in many ways. Simplifying commerce transactions via the help of blockchain holds immense protentional to uphaul current transactions and move into a world where all transactions are transparent and efficient.
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