Benefits of the E-invoicing Transformation in Serbia
The mandatory B2G e-invoicing in Serbia will now kick off from 1st May 2022 — this is after Serbian authorities postponed the initial electronic invoice adoption slated for 1st January 2022.
Other timelines are as follows:
- 1st July 2022 — Mandatory G2B eInvoicing takes effect. Government agencies will be required to send e-invoices to businesses in the private sector.
These private businesses will also be required to receive and process the e-invoices.
- 1st January 2023 — Mandatory B2B eInvoicing takes effect. Electronic invoicing will extend to the B2B sector, spelling the end of paper invoices in Serbia.
How will the adoption of electronic invoicing benefit Serbian businesses?
Let’s take a look.
B2G e-Invoicing in Serbia
B2G e-invoicing in Serbia means that all suppliers in the public sector will be required to send electronic invoices.
The Serbian government, in return, must be able to receive, process, and store the invoices.
Here’s how e-invoicing will help you as a Serbian supplier doing business with the government:
You’ll Get Paid Faster
Electronic invoicing in Serbia eliminates the delays occasioned by mailing, routing, sorting, and re-keying paper invoices.
With e-invoicing, you can seamlessly route your invoices, enabling faster processing and approval. As a result, the government can pay you on time.
E-Invoicing reduces days sales outstanding (DSO) by four days or more.
Fewer Rejected Invoices
The mandatory B2G e-invoicing in Serbia will enable suppliers to process invoices directly from their Accounts Receivable (AR) systems to the government’s accounts payable application.
And, because e-invoicing eliminates the need for government agencies to rekey your invoice data manually, it reduces the potential for data entry errors.
As a result, your invoices are less likely to be rejected, speeding processing.
Better Account Reconciliation
Suppliers often find it difficult to reconcile received payments against the original invoices.
Government agencies will often want to consolidate several invoices for a single bank transfer, prompting calls from suppliers as they seek to understand the specific details behind the transaction.
With the adoption of B2G invoicing in Serbia, suppliers can get a detailed accounting of paid invoices, debits, credit, and adjustments done.
Further, this comes in handy when a government agency claims deductions against an invoice due to missing or damaged items.
By partnering with a third-party provider like Unimaze, suppliers and companies in Serbia can leverage e-invoicing solutions that enable them to trade in countries where eInvoicing is mandatory and meet regulatory compliance at the same time.
Unimaze is a Peppol-certified access point provider. Working with us can help Serbian companies and suppliers overcome a significant barrier to entering new markets or territories where using e-invoices is mandatory for B2G transactions.
Improved Supplier/Customer Relationships
B2G eInvoicing makes the invoicing process swift and efficient. As a result, it reduces disputes and ensures that suppliers can deliver excellent services.
By adopting e-invoicing, suppliers will significantly invest in the long-term business relationship with government agencies.
G2B eInvoicing in Serbia
G2B eInvoicing in Serbia means that Serbian public agencies must send e-invoices to companies. The companies, in return, must be able to receive and process the invoices.
By implementing electronic invoicing in public entities, Serbian authorities want to tap into the cost-saving potential of e-invoicing.
Statistics show that e-invoicing reduces invoicing processing costs by 50 to 80%.
Further, the government wants to lead by example for B2B and B2G. If the authorities want businesses and companies in Serbia to reap the benefits of e-Invoicing, it makes perfect sense for public entities to adopt the use of electronic invoices.
The adoption of eInvoicing by public entities in Serbia will also bring in the following benefits:
- It’ll contribute to public policy priorities like financial transparency and public-sector deficit reduction
- It’ll promote sustainable development
- It’ll create an opportunity for the public sector to act as a catalyst for wider implementation of B2B invoicing in the private sector
B2B eInvoicing in Serbia
Here’s what the B2B sector and private businesses in Serbia stand to gain by adopting e-invoicing.
By eliminating the sorting, registration, and manual data entry associated with paper invoices, Serbian business owners can cut invoice processing costs by 60 to 80 percent.
Want to know how much you can save with e-Invoicing?
Use Unimaze’s free eInvoicing benefits calculator to see how much you can save by sending and receiving e-invoices.
An electronic invoicing system is not prone to errors caused by manual data re-keying. It allows effective end-to-end processing of business-critical data into AP systems, helping businesses achieve more accuracy in B2B transactions.
Increased invoice accuracy reduces the amount of re-work caused by human error.
Further, it reduces the number of calls by suppliers to AP departments, increasing AP productivity.
By adopting e-invoicing, B2B businesses in Serbia can fully automate invoice capture, routing, and approval.
Faster processing cycles ensure on-time payments, help your business avoid late payment fees, and allow you to negotiate for discounts.
Some trade discounts your business can enjoy for timely payments include:
- Buyer-managed discounting programs
- Multi-bank electronic marketplaces
- Bank-led supply chain finance programs
- Supplier receivable factoring programs
Improved Dispute Handling
Did you know that an invoice dispute can cost up to 50 euros (an equivalent of 5,886 Serbian Dinar) to resolve? If your business runs into several invoice disputes per month, that’s a significant loss.
Accurate payments enabled by electronic invoicing significantly lowers the number of calls from your trading partners inquiring about their payment status or disputing payment amounts.
Meeting Green Initiatives
Adopting electronic invoicing will help all sectors of the Serbian economy contribute to the global initiative of reducing carbon footprint.
E-invoicing eliminates the use and transportation of paper, helping save trees and reduce carbon emissions.
Digitizing Serbian businesses will have a significant impact on helping the sustainability objectives that most companies have globally and encourage good business practice.
Benefits of Electronic Invoicing in Serbia by the Numbers
It costs 17.60 euros (about 2,071.7 Serbian Dinar) for a buyer to process a paper invoice and 11.10 (about 1,306.63) for a supplier.
Processing the same paper invoice costs the buyer 6.7o euro (about 788.69 Serbian Dinar) and 4.7 euro (about 553.26 Serbian Dinar) for the supplier.
A buyer who processes 10,000 paper invoices in one year could save 12,290,100 Serbian Dinars by adopting electronic invoicing. A supplier will save a staggering 7,553,700 Serbian Dinars by ditching paper invoices.
Here’s a breakdown of e-invoicing’s impact on other areas of your business:
- Accounts payable labor costs — reduced by 25% – 40%
- Processing cycle time — reduced by 65%
- On-time earning discounts — increased up to 500%
- Invoice processing costs — reduced by 30% – 90%
- On-time payment percentage — improved by 15% – 59%
Start Reaping these Benefits of eInvoicing in Serbia Now
You don’t have to wait until 1st May or 1st January 2023 to enjoy the benefits of electronic invoicing in Serbia.
With the Unimaze e-Invoicing solutions, you can integrate any ERP system to receive and send e-invoices.
We have the tools and expertise to ensure your API management and integration are transparent and secure.
As a leading provider of global electronic solutions and Peppol certified access point provider, we can help Serbian businesses comply with EU and global regulatory compliance.
Book a free consultation session — our eInvoicing experts would be happy to help you get started with your electronic invoicing project.