E-Invoicing Software: Top Picks for European Markets

Tapping into the global economy has become a competitive landscape and CFOs have been tasked with saving every penny. One area full of opportunities is accounts payable—more specifically, invoice processing. Traditional, paper-based invoicing drains time and resources. It leads to costly errors that strain cash flow and vendor relationships. This is where electronic invoicing (and a robust e-invoicing system) fills the gap.

The adoption of e-invoicing is growing exponentially, with a market expected to reach $60 billion by 2032 (at an annual rate of 17%). It transforms the invoice process into a streamlined, digital workflow that reduces human intervention, eradicates errors, and accelerates payment cycles.

Here, we take a quick look at what e-invoicing software is, why it will streamline your business processes, and how to choose the best solution to eliminate manual data entry and stimulate cost savings.

What is E-Invoicing Software?

It all starts with the question, what is electronic invoicing? What tools do I need? E-invoicing software is part of procurement and AP automation systems that enable a company to create, send, receive, and manage invoices (and other documents) in an electronic format. By replacing manual tasks with automated invoice management, e-invoicing streamlines the entire invoice processing lifecycle, from creation to validation, tracking, payment processing, and archiving.

Digital invoicing tools are typically integrated with ERPs or other account software platforms. This allows you to reduce errors and speed up processing time, gaining immediate visibility into the status of invoices and business needs.

European E-Invoicing Formats

E-invoicing solutions support a variety of invoice formats, including PDF and XML, and are designed to meet the compliance requirements of specific industries and regions. In Europe, e-invoicing formats are completely standardised to ensure interoperability, regulatory compliance, and to optimise cross-border transactions within the European Union (EU).

In this streamlined process, each format serves specific requirements, including those for public sector invoicing. Many of these formats and invoice templates also follow EU guidelines established under the European standard on electronic invoicing, EN 16931.

Here are some of the key e-invoicing formats used in Europe:

• Peppol BIS Billing 3.0: The most widely used e-invoicing standard across Europe, supported by the Pan-European Public Procurement Online (Peppol, formerly PEPPOL) network.
• Factur-X / ZUGFeRD (Germany and France): Factur-X (France) and ZUGFeRD (Germany) are hybrid invoice formats that combine PDF/A-3 (human-readable version) with an embedded XML file (for machine processing).
• UBL (Universal Business Language): UBL is an internationally recognised e-invoicing format based on XML.
• CII (Cross Industry Invoice): Developed by the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), this is an XML-based format that complies with European and global standards.
• Facturae (Spain): Spain’s national format, designed specifically for transactions with the Spanish public administration.
• Svefaktura (Sweden): Sweden’s standard e-invoicing format, based on XML, and used for both B2B and B2G transactions.
• FatturaPA (Italy): Italy’s mandatory format for all B2G and B2B transactions, and conforms to Italian legal and tax laws.

Key Compliance Frameworks

The European Standard on e-invoicing is called EN 16931. This user-friendly format defines the structure and semantic data elements of electronic invoices in Europe. Formats like PEPPOL BIS Billing 3.0 and UBL comply with EN 16931, making them interoperable across the EU.

Each EU country also has its specific requirements for VAT compliance. Certain formats will align with these regulations to ensure businesses adhere to national tax laws.

Adopting e-invoicing software solutions help a business modernise invoicing workflows, cutting back on administrative burdens, and improving cash flow via faster, more accurate billing.

The Benefits of E-Invoicing Software

Companies need e-invoicing to remain competitive, improve operational efficiency, and enhance financial control in an increasingly digital economy. Here are a few key benefits a business can reap from online invoicing processing:

Cost Savings

Paper-based invoicing includes costs for:

• Paper
• Printing
• Postage
• Storage

E-invoicing software eliminates these expenses by digitising the entire process. Reducing errors and optimising workflows means companies avoid the costs associated with fixing mistakes and managing disputes.

Enhanced Speed

Traditional invoices can take days or even weeks to process. Digital invoice data accelerates the invoicing process by automating time-consuming steps such as data entry, validation, and approval workflows. E-invoicing software allows for instant delivery and automated routing, meaning invoices reach approvers faster, reducing the payment cycle significantly.

Improved Compliance

Global business operations require specific invoice rules depending on the country. Industries and governments have certain compliance requirements for invoicing, such as data storage, reporting, and format standards.

E-invoicing and payment software is designed to comply with localised regulatory standards, helping businesses avoid penalties and audits. These tools also provide a centralised, digital record of every invoice, making it easy to track transactions and provide supporting documentation.

Additional Benefits of E-Invoicing

• Improved Accuracy: Validates vendor invoice data before payment is sent, reducing duplicates and compliance risks.
• Better Cash Flow: Optimises cash flow by speeding up approval, invoicing, and the payment process, reducing payment delays.

• Improved Relationships: Faster and accurate invoicing improves supplier relationships, enhancing transparency.
• Real-Time Analytics: Insights into invoice processing times, payment trends, and outstanding balances.
• Easy Scalability: Software will meet increasing demands, making it a practical long-term investment.

The Best E-Invoicing Solutions for European Organisations

Tipalti

Tipalti is an automated, cloud-based accounts payable and e-invoicing solution that streamlines global payments and compliance. It’s particularly well-suited for companies that work with global vendors and manage complex AP workflows. Tipalti offers secured access to the European E-invoicing Network (Peppol).

Pros

• End-to-end AP automation from invoice data capture to approvals, payments, and reconciliation.
• Multi-currency and multi-country compliance, including VAT and tax regulations.
• Integrates well with global ERP systems, making it ideal for scaling businesses.
• Offers fraud detection, secure payments, and robust financial controls.
• Self-service supplier portal to empower partners to manage contact details and invoice status

Cons

• Some small businesses may not need global features
• Setup and customisation may require initial support.

Pricing

Tipalti pricing starts at €99/month for the basic AP automation plan (with custom pricing based on volume (invoices and purchase orders) and features).

Basware

Basware is a popular e-invoicing and procure-to-pay solution with a strong focus on automation and compliance for large and mid-sized enterprises. Known for its powerful analytics, Basware is a good fit for companies with a high volume of invoices.

Pros

• Global compliance support and multi-language capabilities.
• Advanced analytics and reporting for strategic insights and decision-making.
• Highly configurable to fit unique business workflows and organisational needs.

Cons

• It can be complex to implement and may require more time for onboarding.
• Higher costs due to scalability and customisation options, which may deter a small business.

Pricing

Basware pricing is often customised, and is generally in the higher range due to the comprehensive features and functionality. Starting costs are around €1000+ per month for small businesses.

Easy Systems

Easy Systems is a cloud-based AP automation and e-invoicing solution known for being simple, straightforward, and user-friendly. It is popular in Europe for businesses seeking a no-frills approach to e-invoicing without extensive configuration.

Pros

• Ease of use with an intuitive dashboard and minimal training required.
• Fast implementation and low maintenance requirements.
• Scalable system good for small to mid-sized companies.

Cons

• Limited customisation options, which can be a drawback for complex processes.
• Fewer features for analytics and reporting compared to larger solutions like Basware.

Pricing

Generally more affordable than some other options, with prices starting at around €150-€300 per month, making it accessible for small and mid-sized businesses.

Esker

The Esker brand provides a cloud-based e-invoicing and AP automation solution that is highly customisable with strong integrations. Esker is particularly useful for organisations looking to automate not only invoicing but the entire order-to-cash cycle.

Pros

• Flexible tools and highly customisable workflows for a variety of AP needs.
• Excellent integration with ERPs and apps, with and support for a wide range of processes.
• Strong compliance and fraud protection features.

Cons

• Higher complexity and longer onboarding due to its customisations.
• Pricing can be higher than the competition, particularly for small businesses.

Pricing

Esker provides customised pricing based on the features required and volume of invoices you are processing. Starting rates are typically higher-end, around €700-€1000 per month, depending on the tools chosen.

Kefron

Kefron is an e-invoicing and document management service that provides an intuitive solution for businesses looking to transition from paper-based to digital invoicing. The solution is known for focusing on digital transformation and is well-suited for European SMEs.

Pros

• User-friendly and requires minimal IT resources for setup and maintenance.
• Scalable for small to mid-sized organisations and fits well with companies new to digital invoicing.
• Good document management features that enhance overall record-keeping.

Cons

• Limited advanced features like analytics and deep ERP integrations.
• May not be ideal for very large enterprises or businesses with complex AP needs.

Pricing

Kefron is a more affordable option, typically starting around €200-€400 per month.l This makes it a solid choice for small and medium-sized European businesses.

Medius

Medius is an extensive AP automation platform with strong e-invoicing capabilities and end-to-end invoice processing. It’s known for powerful automation, AI-driven invoice matching, and in-depth analytics. This makes it a popular choice among mid-sized and large enterprises.

Pros

• Advanced automation, including AI for invoice matching and data validation.
• Robust analytics and in-depth reporting to monitor and improve efficiency.
• High levels of customisation for enterprise needs.

Cons

• Higher learning curve and more intensive onboarding process.
• Premium pricing that may not suit smaller organisations or those with lower transaction volumes.

Pricing

Medius pricing is customised and generally in the upper range. Costs typically start around €800 per month, depending on customisation, configuration, and volume.

How to Choose the Right E-Invoicing Solution for Your Business

Choosing the right software involves careful evaluation of your business needs, budget, and future growth plans. Here’s a quick step-by-step guide to help you find the best e-invoicing solution:

#1) Assess Current Business Needs and Goals

Consider the volume of monthly invoices processed and the complexity of these transactions. Identify any legal and regulatory requirements relevant to your business. For example, does the solution support formats like PEPPOL or Factur-X and comply with VAT and GDPR regulations?

#2) Identify Key Features

For the majority of businesses, they’ll need a solution with features like:

• Automation for data capture, PO matching, and approval workflows
• Integration with ERP and other legacy accounting systems
• Customisable workflows and flexible configurability
• Comprehensive analytics and reporting to monitor performance
• Strong data encryption and secure user authentication

If you’re doing global business, consider a solution that also offers multi-currency and multi-language support. Systems like Tipalti offer real-time exchange rates and transactions in a variety of currencies to ensure swift and accurate processing.

#3) Evaluate Implementation

The longer it takes to implement a solution, the costlier it can become. Choose a system with an intuitive dashboard that minimises the learning curve. This is particularly important for teams that are new to e-invoicing. Consider e-invoicing and accounting software that offers training and customer support during and after the onboarding process.

#4) Analyse the Total Cost of Ownership

Be sure to compare pricing plans and licencing fees across all vendors. Some offer monthly or annual subscriptions, while other brands require upfront costs. A business needs to look beyond basic fees to understand the total cost of ownership. This includes setup fees, integration costs, training expenses, and additional fees for add-on features.

#5) Test the Solution

Many service providers offer free trials or demos. Take advantage of these and test the functionality, ease of use, and integration capabilities of the system. Involve finance and accounting teams to gather feedback and assess whether the potential solution meets your operational needs.

Summing It Up

Selecting the right e-invoicing solution is key to improving financial efficiency, enhancing compliance, and reducing manual workload. Using systems like Tipalti give organisations access to a variety of tools that offer distinct strengths—from multi-currency capabilities and AI-driven automation to a simple, user-friendly interface.

Aligning the features of each solution with your specific business needs, budget, and growth goals, unlocks the full potential of digital invoicing and ensures a smoother, more optimised AP process. Ready to begin your e-invoicing journey? Get started with Tipalti today!