Full-scale adoption of digital invoicing (also called electronic invoicing, or e-invoicing) could contribute more than $116 billion to the U.S. economy, primarily through productivity gains by small and mid-sized businesses, according to a new study released by Avalara and the Centre for Economics and Business Research (Cebr).
The report surveyed 1,720 companies across six countries and modeled the financial and operational effects of full e-invoicing adoption. Globally, the projected benefit across the U.S., UK, France, Germany, India, and Australia stands at $616 billion.
In the U.S., 83% of the projected gains — or about $97 billion — would come from SMBs. These businesses could save $15.16 per invoice received, the highest among the markets studied. That equates to $1.1 million in annual productivity gains per firm, driven by reduced processing times and fewer manual errors.
How digital invoicing could boost the economy
Globally, companies using digital invoicing reported an average 1.4-day reduction in payment cycles and 39-minute savings per invoice. Fraud and tax-related fines dropped by 30% among adopters. Despite these benefits, only 37% of U.S. SMBs have fully implemented e-invoicing, citing integration complexity and staff training as key barriers.
The report also found that firms using e-invoicing experienced faster payments and improved cash flow. In the U.S., payment speeds improved by 8%, leading to an average annual cash flow benefit of over $14,000 per large firm. In Australia, e-invoicing cut payment times by 2.5 days, saving firms $649,200 annually. UK businesses saw a 4.8% decline in past due payments—the largest drop among surveyed nations.
Security improvements were another key finding. While 44% of global firms using manual invoices reported tax fines and 34% experienced invoice fraud, those using e-invoicing cut those figures in half.
Although no federal mandate exists in the U.S., more than half of American firms support one. European governments are moving faster: France and Germany are preparing to mandate e-invoicing starting in 2026 and 2027, respectively.
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