William Eichler 10 November 2015

Local authorities looking to invest in e-invoicing

Local authorities looking to invest in e-invoicing image

39% of local authorities are looking to invest in e-invoicing in the next 12 months, according to research conducted by iGov.

In a survey carried out on behalf of Basware UK, the LGA, Department of Business Innovation and Skills, and the UK National e-Invoicing Forum, iGov learnt that 74% of public sector professionals believe e-invoicing increases the number of payments made on time.

They also found that 61% of public sector workers think it increases visibility of the workflow process and 44% believe it will improve supplier relationships.

The report discovered the most common method of invoicing is PDF email, used by 63% of local authorities. This often results in manual processes such as printing or scanning, which can be removed by e-invoicing.

The Government is attempting to encourage councils to adopt e-invoicing with the Enterprise Bill and Prompt Payment Code.

However, 40% of organisations surveyed stated that lack of resources prevented them from putting such a system in place.

Amabel Grant, VP Network Services and UK MD, at Basware, said:

‘The public sector is starting to address late payments culture and move towards paperless systems but more needs to be done to help them become fully electronic. There is a perception in the public sector that e-invoicing is costly and difficult to implement. It is clear that the sector wishes to implement e-invoicing and punitive measures around late payment have provided a more compelling reason to do so.’

She continued: ‘E-invoicing provides an exciting opportunity for local authorities to streamline their invoicing systems and make progress towards the EU’s 2020 vision for paperless public administration. With the Prompt Payment Code coming into force and the Enterprise Bill passing through Parliament, now is an ideal time for the government to help local authorities step up to e-invoicing.’

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