Digital delivery has come a long way in accounts payable, but most invoices still arrive as documents rather than data. The format is easy to send and familiar to handle — but it limits how much of the process can be automated.
Electronic invoicing (e-invoicing) removes these limitations by switching the invoice from a visual file to a structured data record that finance systems can validate and post automatically.
Momentum for e-invoicing is building across the UK and Europe. Many private sector organisations are using it to accelerate invoice processing and improve control, while public bodies such as the NHS already exchange structured invoices via PEPPOL.
As more supply chains expect data-based invoicing as standard, now is a sensible time to prepare for e-invoicing. This guide explains what electronic invoicing means in practice, how it works, and how to adopt it without disrupting your finance operations.
Electronic invoicing (e-invoicing) is the B2B exchange of invoice data in a structured, machine-readable format. Unlike PDF attachments or scanned documents, which are visual files, an e-invoice is sent as structured data that accounting systems and ERP software can automatically validate, post and archive.
Behind the scenes, every e-invoicing process relies on a few core elements:
E-invoicing replaces the stop-and-start steps of paper and PDF invoicing with a connected digital workflow. While individual setups vary by supplier and finance system, the core process follows the same pattern:
By moving every stage into a single AP automation process, finance teams gain real-time visibility, reduce processing time from weeks to hours, and stay fully prepared for audits and VAT checks.
Today, the UK has no nationwide B2B e-invoicing mandate. However, electronic invoicing is already required for public sector purchasing under the Public Procurement (Electronic Invoices etc.) Regulations 2019. Many organisations — including the NHS — exchange invoices via the PEPPOL network to ensure secure, standardised delivery.
The UK government is currently exploring how to expand electronic invoice management standards, signalling that broader adoption is on the horizon.
Even without a legal deadline, many UK businesses are switching to structured e-invoices to reduce admin, speed up payments and keep finance data consistent.
Sending invoices in a recognised format (like EN 16931 via PEPPOL) and storing them in a controlled digital archive with clear access, retention and audit tracking is now considered good practice.
It's worth noting that this standards-based exchange of invoices differs from Continuous Transaction Controls (CTC) models seen in countries such as Italy and Poland, where every invoice must be submitted to the tax authority in real time for approval or e-reporting before it reaches the buyer.
The UK hasn’t taken this route — but businesses that adopt structured e-invoicing now will find it far easier to adapt if similar rules are introduced in the future.
E-invoicing isn’t just an opportunity to work more efficiently; it also supports compliance. Under the UK GDPR and the Data Protection Act 2018, organisations must be able to demonstrate that personal and financial data is processed securely, accessed appropriately and retained for the correct duration. This framework applies as much to invoices as to any other business record.
A compliant setup depends not only on how invoices are exchanged, but also on how they are stored. A secure document management system (DMS) should provide:
With these elements in place, e-invoicing strengthens your compliance position and makes audit readiness a built-in feature rather than an annual scramble. Your DMS should offer certified security controls and features that support these obligations end-to-end.
For organisations that want the advantages of e-invoicing without compromising security or regulatory obligations, DocuWare provides a platform with independently verified protection across every layer.
DocuWare’s compliance foundation includes:
In short: DocuWare gives finance and IT teams confidence that every invoice is handled in a secure, compliant and audit-ready environment.
Even when invoices arrive by email as PDFs, they still behave like paper. Someone has to read them, key in the figures and chase approvals. With structured e-invoicing, most of that effort disappears.
Here’s how the two approaches compare:
|
Aspect |
Manual / PDF invoicing |
E-invoicing (structured data) |
|
Speed |
Days to weeks |
Hours to 1–2 days; many touchless |
|
Accuracy |
Manual entry; higher error rates |
Automated validation, typically 98–99%+ |
|
Visibility |
Limited tracking |
End-to-end status and delivery confirmations |
|
Compliance |
Scattered records |
Central archive with audit trails and retention |
|
Scalability |
More volume = more headcount |
Scales without proportional headcount |
Most organisations don’t switch to structured electronic invoice management overnight. Instead, they phase it in alongside existing processes. A good starting point is to treat e-invoicing as an upgrade to your current AP workflow rather than a full replacement on day one.
A typical e-invoicing deployment follows five steps:
Until recently, Smithfield’s approvals were entirely paper based. Invoices were printed, passed around for sign-off, filed and re-filed through multiple stages, before being archived offsite.
Staff often handled the same document up to four times, and approved invoices ended up back in circulation while waiting for the next 14-day payment run.
Working with a local DocuWare partner, Smithfield replaced its manual maze with a fully digitised invoice workflow in just four weeks:
“Thanks to our DMS, we aren't wasting time on searches and filing. For our organisation, this amounts to recapturing a good 85 hours per month — roughly the working time of a part-time employee,” says Ralph Farrow, IT Manager, Smithfield Foods.