Kolleno Payments
E-invoicing is fast becoming a must-have for finance teams looking to reduce costs, eliminate human error, and speed up their accounts payable operations. But how do you know whether the switch to digital invoices is actually worth it? That’s where return on investment (ROI) comes in.
In this article, we’ll explain how to calculate the ROI of e-invoicing and what kind of financial impact your business can expect. Whether you’re trying to justify implementing AP automation software or simply want to improve cash flow, this guide will help you make the numbers work in your favour.
What is E-Invoicing?
E-invoicing, or electronic invoicing, is the process of generating, sending, receiving, and storing invoices digitally. It replaces paper-based processes with automated systems, reducing manual data entry and ensuring timely payments.
Most cloud-based accounts payable automation solutions include features like invoice matching, approval workflows, and integration with accounting software. These help teams process invoices faster and more accurately, while also providing better audit trails and compliance.
The Benefits of E-Invoicing for Businesses
The best e-invoicing solutions do more than simply streamline tasks—they also unlock significant cost savings, reduce risk, and free up your team for higher-value work. Here are the key benefits.
Cost Savings
E-invoicing cuts down on paper invoices, postage, printing, and physical storage. But more importantly, it reduces the number of hours AP staff spend on manual processing, approvals, and chasing payments.
Time Savings
By automating repetitive tasks and enabling quicker approvals, e-invoicing significantly shortens the accounts payable process. That means faster payment processing, fewer late fees, and happier suppliers.
Fewer Errors
Manual data entry and paper-based workflows are prone to human error. E-invoicing reduces incorrect data entry and duplicate payments by enforcing validation checks and automation.
Improved Cash Flow
Faster invoice approvals lead to quicker payments. That not only strengthens supplier relationships, but also opens the door to early payment discounts and more predictable cash flow.
Better Visibility and Control
Real-time dashboards, audit trails, and approval workflows make it easier to track every invoice. This helps your finance team stay compliant and make more informed decisions.
How to Calculate the ROI of E-Invoicing
Calculating e-invoicing ROI isn’t complex—but it does require knowing where you stand today. Here’s a step-by-step process to get clear on the financial impact.
Step 1: Calculate the Total Cost of Your Current Process
Start by identifying the costs involved in your existing AP process. This might include:
- How many invoices you send out
- Hours spent on manual data entry
- Staff time spent chasing approvals
- Postage, printing, and paper invoice handling
- Late fees due to payment delays
- Time-consuming error correction from incorrect or duplicate invoices
Multiply these costs by your average invoice volume or number of monthly invoices.
Step 2: Estimate the Savings From E-Invoicing
Use an AP automation ROI calculator to estimate the time savings, error reduction, and cost savings you could achieve. Key factors include:
- Reduction in hours spent on data entry and approvals
- Fewer duplicate payments and fewer human errors
- Lower processing costs per invoice (from £7-10 to as low as £1-2)
- Potential early payment discounts
Step 3: Factor In Intangible Benefits
Some benefits are harder to quantify, but still matter:
- Stronger compliance and audit readiness
- Improved supplier relationships
- Increased morale and productivity among AP staff
- Easier reporting and financial planning
Include these intangible benefits in your presentation or business case—even if you don’t include them in your ROI formula.
Step 4: Calculate ROI
Use the standard ROI formula:
ROI = (Total Savings – Total Costs) / Total Costs x 100
For example, if you save £60,000 annually and spend £20,000 on an AP automation solution, your ROI is 200%.
Why Kolleno is the Leading E-Invoicing Solution
Kolleno stands apart in the crowded e-invoicing space by offering a truly end-to-end solution that’s built for compliance, speed, and simplicity. While many tools focus on digitising paper invoices, Kolleno goes several steps further—transforming invoicing into a fully automated, structured, and auditable workflow that integrates directly with your ERP.
Whether you’re looking to replace PDFs with machine-readable formats or future-proof your invoicing against shifting international regulations, Kolleno delivers everything in one platform.
At its core, Kolleno’s e-invoicing system is designed to remove friction from every stage of the invoicing journey. Structured invoices are generated, validated, and sent automatically—without the need for manual data entry, printing, or chasing approvals. Tax authority confirmation happens in real-time, helping your team stay compliant across borders with no additional effort. This reduces the average payment cycle and eliminates hours of administrative burden every week—particularly for finance teams handling high invoice volumes or operating across multiple regions.
The platform connects seamlessly with your ERP, handles multiple invoice formats and jurisdictional requirements, and even reconciles incoming payments to the correct invoices through embedded AI. The result is a finance workflow that’s not just automated—but intelligent, traceable, and entirely audit-ready.
Final Thoughts
Calculating e-invoicing ROI is the first step in building a business case for AP automation. But the true value lies in transforming your accounts payable process from a cost centre into a strategic advantage.
With Kolleno, you get more than just an e-invoicing tool. You get a smarter way to manage accounts payable, save money, and free your team from manual tasks.
Book a demo today and see how much you could save.
