#Japan #Tokyo #TKC #Digital Invoice #EIPA

EIPA's Survey on Digital Invoicing in Japan

The E-Invoice Promotion Association (EIPA), led by TKC Corporation, has embarked on a significant initiative to explore the current state of digital invoicing across Japan. By engaging 2,000 professionals in accounting and invoice-related roles, the association sought to gather insights into both the application and obstacles of digital invoicing.

Key Findings:

The survey results reveal a substantial shift towards digital formats, with approximately 70% of businesses transitioning to PDF invoices. However, the progress remains incomplete, as input and reconciliation processes still account for 37.3% of the burden associated with invoicing tasks, indicating that real digital transformation has yet to be achieved.

Understanding Digital Invoices vs. PDFs:

Interestingly, 67.5% of respondents do not fully understand the difference between digital invoices—specifically structured data formats like Peppol—and electronic invoices represented by PDFs. This suggests a misunderstanding in the industry where merely converting invoices to PDF is seen as a completion of digital transformation. PDFs may replace paper but do not facilitate automatic data integration into systems, which is essential for true digitalization.

Realizing the Benefits of Digital Invoicing:

Despite the current state of affairs, nearly 77% of companies that implemented digital invoicing practices reported experiencing clear benefits. This statistic indicates a pronounced effectiveness in structured data integration compared to simply adopting PDFs. As businesses acknowledge these advantages, the need for broader adoption becomes evident, although less than 20% of companies are currently operational or piloting digital invoicing solutions.

Identifying Barriers to Adoption:

A major obstacle identified in the survey is the lack of collaboration among trading partners, with 18.5% citing that their partners have yet to respond to digital invoicing initiatives. Vendors are expected to facilitate this transition by providing support, such as engagement strategies for partners and comprehensive implementation guides.

A Call for Governance Reinforcement:

Moreover, the survey highlighted a rising interest in governance enhancement through digital invoices, with features like approval history retention and documentation authenticity becoming pivotal. This reflects a growing recognition of the need for safeguarding compliance and auditing mechanisms in the evolving digital landscape.

Conclusion:

As the digital invoicing community continues to evolve, the insights from EIPA's study underscore both the progress made and the challenges that lie ahead. The association aims to advocate towards the proliferation of true digital invoicing to elevate productivity across the business ecosystem, not just through internal practices but by fostering a collaborative approach that involves all trading partners.

Additional Information:

For a more detailed overview of the survey, you can access the full report here.

About EIPA:

Founded on July 29, 2020, the E-Invoice Promotion Association is based in Tokyo and aims to support the transition towards digital invoicing across various businesses. The association’s objective is to illuminate the path to true digitalization and enhance collaboration in the invoicing arena, ensuring that businesses can efficiently leverage technological advancements for better operational outcomes.