7 Things to Look for in e-Invoicing Software

Editor Notes: This post was originally published in November 2017 and has been updated for accuracy and comprehensiveness, most recently in July 2025.

According to a poll by IOFM, only 9% of accounts payable (AP) leaders state their department is fully automated and a startling 14% of accounts payable departments process invoices and pay suppliers in a completely manual environment. Why? One reason is that the solution options can be overwhelming. In this blog post, we’ll help you navigate this undertaking with 7 essential criteria for e-invoicing.
 

During uncertain times, maintaining healthy cash flow is critical to keeping your business moving and active—and AP automation is key to doing just that.

Taking slow, tedious, manual, paper-based processes out of the AP cycle and digitizing instead provides compelling benefits for the entire process. Submitting, processing, and paying invoices electronically means less paper, decreased handling of physical documents, and fewer manual interventions. Plus, the automation of associated workflows such as routing, coding, matching, and approvals produces similar benefits. But how do you go about deciding which e-invoicing solution is best for your organization so you can start capturing this value? Let’s explore.

1. Research e-invoicing options that automate both the sending and receiving of invoices

While many companies are currently doing one or the other (typically sending), a holistic approach will deliver the best ROI and fastest payback period. An integrated system that allows you to fully manage your e-invoicing sending and receiving will increase efficiency, cost savings, and scalability.

2. Identify an e-invoicing solution that operates over a large, open network

An open global network allows you to send and receive e-invoices with any company through a single connection—and it should be free of charge for your suppliers. This way, all suppliers can join the network easily and immediately start sending invoices that your solution converts into true e-invoices. With a large, open network that connects thousands of companies, you can also expand connections with more suppliers and buyers quickly.

3. Ask if the e-invoicing solution supports ALL invoice formats

Don’t make your suppliers change how they operate—look for a solution that converts any invoice format into a true e-invoice. Choose software that can accept all invoice types (paper, electronic, EDI/XML, PDF, etc.—covering direct, indirect, PO, and non-PO spend) and convert them into structured data that systems can process without manual input.

For example, large suppliers should be able to communicate in their preferred electronic format (EDI/XML), while smaller suppliers should have access to tools that convert the PDF invoices they send today into electronic data—without relying on outdated OCR technology. You may also need to meet customer requirements for specific formats, so flexibility is critical. Ensuring the e-invoicing solution can handle all invoice formats allows you to process 100% of invoices in the system, capture complete data, and gain true spend visibility.

4. Determine if you need support for multiple currencies and global regulations

If your company operates in different geographical regions, or if you purchase from international suppliers, you’ll need to make sure that your invoices comply with the different tax and regulatory laws in these regions. Your e-invoicing software should relieve you of the complexity of these aspects by automatically ensuring you’re in compliance.

5. Find out if the e-invoicing software can seamlessly integrate with existing systems

Integration in a multi-ERP environment is a challenge, and many e-invoicing software systems aren’t made for complex environments. If you need the software to integrate with specific business systems, you’ll want to make sure that a seamless and safe integration is guaranteed by the provider.

6. Ask about e-invoice archiving capabilities

There are many good reasons to move away from paper invoice archiving into electronic invoice archiving, such as reducing the space and resources needed to store invoices, maximizing data security and integrity and having an immediate, online access to any invoice you need. The results are improved efficiency and significant cost savings for most companies. It’s also a critical aspect of compliance for global organizations. Ensure you store the right documents for the right amount of time, purge them once that time period is up and have the ability to quickly access your documents to streamline processes and make audits easier. 

7. Dig into the analytics capabilities of the e-invoicing solution

What information does your leadership team need, on what schedule? Business intelligence is essential for smart decision-making that drives performance. Your e-invoicing software should provide integrated analytics to deliver actionable insights with graphical dashboards for trend analysis and drill-down capabilities for transaction-level detail. Valuable insights can be derived from the data so make sure the e-invoicing solution you choose can deliver.

When you have specific productivity objectives you want to accomplish, the last thing you want is to spend time and money on e-invoicing software that, in the end, doesn’t allow you to reach your goals and doesn’t prepare you for the future. It can be challenging to evaluate different solutions, and each company will have unique needs. But looking for these seven capabilities will give you peace of mind that you know what’s essential.

Choosing e-invoicing software – 7 tips:

  1. Research e-invoicing options that automate both the sending and receiving of invoices

  2. Identify an e-invoicing solution that operates over a large, open network

  3. Ask if the e-invoicing solution supports ALL invoice formats

  4. Determine if you need support for multiple currencies and global regulations

  5. Find out if the e-invoicing software can seamlessly integrate with existing systems

  6. Ask about e-invoice archiving capabilities

  7. Dig into the analytics capabilities of the e-invoicing solution

Looking for a clear overview of how e-invoicing works, its benefits, and key considerations? Learn more here.

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