
The hidden costs of invoicing – Too small to justify action?
Financial teams are under increasing pressure to reduce the cost of invoicing, including Accounts Receivable (AR) teams. Yet, many businesses continue to rely on traditional invoicing, absorbing both direct and hidden costs. This is surprising, given the extensive research and calculations that demonstrate the potential savings. Despite this, many companies struggle to implement improvements – or make only minor changes. Why? Are the savings too small? Is the required investment too large? Or do other initiatives promise greater returns?
Let’s break down these costs and explore ways to optimize invoicing operations.
Direct cost of invoicing
The most expensive and slowest invoicing method is paper-based. Studies estimate that issuing a single paper invoice costs between €7.50 and €12.50. This includes expenses for document preparation, printing, paper, envelopes, manual handling, and postage. While costs vary by industry, company size, invoice volume, and location, one fact remains clear: e-invoicing and automation significantly reduce costs.
Hidden invoicing costs
Beyond direct expenses, several hidden costs add to the total invoicing burden. One of the biggest is the impact of late payments. Additionally, many companies incur costs related to archiving and storing physical invoice copies.
Late payments affect your cash flow
Late payments affect your cash flow. They generate extra work in producing reminders and add to costs for debt collection. Delayed payments evidently mean longer DSO (Days Sales Outstanding), which in turn results in more hidden costs, for example, in the form of higher finance and credit insurance costs.
Late payments are a widespread issue. On average, 39% of invoices are paid late, and overdue payments have become even more common since the COVID-19 pandemic.
“About 39% of all invoices are paid late.”
Statistics show that for every paper invoice sent, 0.34 payment reminders are required. This ratio drops to 0.28 for PDF invoices and just 0.1 for e-invoices. The worst delays occur when customers dispute invoices, initiating a new payment cycle and further extending payment timelines. These delays result in additional costs related to reminder notices, collections, extended credit periods, and higher financing expenses.
Invoicing errors add up
Invoice errors are another costly issue. Studies reveal that 96% of companies have had to issue at least one corrected invoice in recent months. Specifically:
- 8–10% of paper invoices contain errors.
- 10–40% of invoices lead to customer complaints.
Correcting invoice errors is time-consuming and affects multiple departments, including finance, production, logistics, customer service, and sales. Given that the direct cost of a paper invoice starts at €7.50, the cost of correcting an invoice adds at least €23, bringing the total invoice cost to €30.50.
E-invoicing cuts down your cost of invoicing
The quicker your invoices are sent to your customers, and the more accurate they are, the faster you will get paid. That’s why today, all invoicing should be automated and electronic.
E-invoicing cuts down the direct costs of invoicing by automating invoice preparation and eliminating costs related to printing, use of paper, and postage. It also simplifies account reconciliation and requires less storage resources for archiving.
Further, 90 % of e-invoices are paid on time, compared to 71% for emailed PDF invoices and 66% for paper invoices. E-invoices come with a lower risk of manual payment errors or delays due to high workloads, vacations, etc. You will collect your payments faster, cash flow will be less of a worry, and you can spend less time chasing late payments.
“E-invoices are paid on time and do not contain errors. “
Bottom line
If you send 100,000 invoices annually, with a large portion still on paper, these costs can escalate quickly. Let’s break it down: if 50% of your invoices are paper-based and 10% contain errors, the cost for this portion alone adds up to 50,000 × €7.50 + 5,000 × €23 = €490,000! By eliminating paper invoices, reducing errors, and cutting hidden costs, you could save hundreds of thousands of euros per year—a significant opportunity that’s too big to ignore!
“Save hundreds of thousands annually by simply moving away from paper and by automating invoice sending processes.”
E-invoicing is faster, more cost-effective, compliant and environmentally sustainable. If your company hasn’t fully embraced it yet, now is the time. Unlock the full potential of e-invoicing with OpusCapita. Contact us today to streamline your AR process and start saving!

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