Using automated financial administration benefits companies in many ways.
- makes financial processes more efficient
- enhances data quality
- reduces errors, and
- eliminates manual work, which burdens financial administration and companies.
When data is directly transmitted from receipts and other vouchers to financial administration systems, there is less need for manual processing of vouchers, and overlapping work can be eliminated. This in turn will enhance efficiency in companies and public administration. Errors resulting from manual copying of information will also become less common and less time needs to be spent on correcting the errors.
Financial administration data supplied in machine-readable (structured) format will generate substantial savings. For example, financial and official reports can be automatically generated on the basis of e-invoices and digital receipts. Sharing financial data with other companies, service providers and government agencies is easy, quick and secure. There are no longer any problems arising from lost documents, from paper vouchers falling into wrong hands or from delays caused by document transfers.
It is estimated that companies could save more than EUR 600 million each year by replacing manual work with structured receipts. Official reporting by companies could be simplified as most or all of the reporting would be fully automated.
When invoices and receipts are transmitted in structured and electronic format, they are also directly available in the companies’ own systems. In that case, even the smallest companies could start using real-time cash and inventory systems. Companies can develop their operations, have better opportunities to seek funding for investments, and grow more rapidly.
Automated processing of financial information also provides the basis for extensive development of new digital services for financial administration.
Companies and public administration actors can make better decisions when they are based on correct and real-time financial information. Concluding agreements with new partners will also be on a more secure basis. Companies must be provided with services allowing them to quickly check their business partners’ registrations and financial situation and to determine whether all taxes have been paid and other payment obligations met.
Trade with companies in the European Union becomes smoother as all actors in the area will introduce international receipt standards. The will ensure that the technical solutions used are interoperable.