Electronic invoice is more efficient and also better for the environment

In addition to the environmental benefits, switching to e-invoices frees resources, making a company more efficient. In an example company in the study, Finncontainer, only half of the time spent in the processing of paper invoices was required for e-invoices. Such freed resources can be used, for example, to improve customer service.

On average, e-invoices are four times more environmentally-friendly than paper invoices. The study revealed, perhaps somewhat surprisingly, that the largest difference is not made through paper saving and electric distribution, but rather through the time-saving that makes work more efficient. Electronic invoicing changes every step of the invoicing process, in both incoming and outgoing invoices. In processing paper invoices, approximately 60% of emissions are generated by work, while in e-invoices this number is 99%.

Of emissions related to paper invoices, approximately 40% are generated by paper, envelopes, printing, franking and distribution. These are eliminated or automated in e-invoices, which also shows in the carbon footprint.

Small and medium-sized enterprises that seek to reduce costs by switching to invoices in PDF format are not gaining the most important benefits of electronic invoices. Formats such as Finvoice are better for gaining the efficiency and environmental benefits shown in the study.

The study, published by the Federation, was conducted in cooperation with various partners. Background research and analysis of invoicing processes were done in Aalto University. Natural Interest Ltd calculated the carbon footprints, and, as recommended by the Federation of Finnish Enterprises, Finncontainers Ltd was used as an example in the case study. The State Treasury took part in the project by representing a large organisation and a typical cooperation partner of small and medium-sized enterprises.

Additional information:

Report:
http://www.fkl.fi/modules/system/stdreq.aspx?P=2294&VID=default&SID=537735363411883&S=0&A=open%3anews%3aitem_www%3a7262&C=30893

Federation of Finnish Financial Services:
eServices Developent Manager Pirjo Ilola, tel. +358 20 793 4255
Communications Manager Kristiina Siikala, tel.+358 20 793 4273

Aalto University:
Research Assistant Maija Tenhunen, tel. +358 50 3289 536
Assistant Professor Esko Penttinen, tel. +358 40 575 4520

Natural Interest Ltd:
Managing Director Jonne Hellgren, tel. +358 40 574 6031

Finncontainers Ltd:
Managing Director Sarianne Reinikkala,tel. +358 29 123 4334

Valtiokonttori:
Payments Specialist Kristiina Seppälä, tel. +358 50 430 5391

Federation of Finnish Financial Services represents banks, insurers, finance houses, securities dealers, fund management companies and financial employers operating in Finland. Its membership includes employee pension, motor liability and workers compensation insurers, all three providers of statutory insurance lines that account for much of Finnish social security. The Federation has about 480 members who employ a total of 43,000 people.