Becoming a Peppol service provider versus using an off-the-shelf e-invoicing API.
Direct API connectivity with Peppol is the most efficient, user-friendly and cost-effective route to performing e-invoicing. For software companies, developing your own Peppol access point may seem an appealing idea. After all, having complete control over product creation is a great opportunity to innovate and offer bespoke solutions.
However, once the investments in terms of time, resources and finances are taken into account, the case for not doing this is strong.
Time is a precious commodity. And becoming a Peppol service provider uses a great amount of it. When you consider all the processes involved this is problematic for a number of reasons.
1. Unpredictable customer demand
Business organisations have two incentives for implementing e-invoicing: (1) to comply with impending legislation and (2) to capitalise on benefits such as cost and error reduction, fraud prevention, increased efficiency, faster payment processing and green credentials.
Those who are only incentivised by compliance (1) are unlikely to make themselves known until the deadline is upon them, at which point they will need a very quick fix. If you start working on your Peppol access point far enough ahead of the mandates, you may be ready before the rush. But without firm, advance commitment that customers will choose your solution for fulfilling their e-invoicing obligations, there’s a chance your investment won’t pay off for a long time.
In the other camp (2), those who recognise e-invoicing’s many benefits want to start enjoying them now, not in two years’ time.
2. Strain on resources
Dedicating people to the task of becoming a certified Peppol service provider means they are unavailable for other matters that are important, or even critical, to your core activity.
Their time will be taken up with things such as:
- Direct onboarding with Peppol
- Complying with Peppol authority requirements (e.g. document retention, reporting of statistics)
- Figuring out country-specific requirements
This may result in 14 to 24 months of reduced attention to matters like fixing bugs, making improvements and adding new features. All of which could be detrimental to your existing business. Yes, you could bring in more employees or contractors. But software developers are in high demand, so hiring new people and retaining everyone you need is a challenge that could leave you caught short on both expertise and finance.
3. Ongoing commitment
The time-consumption doesn’t end when your Peppol access point is built. Ongoing attention is necessary to keep up with:
- Evolutions in the e-invoicing landscape, for every different country
- Implementation of new Peppol requirements
- Peppol reporting
- Changes to exchange mechanisms, such as
- access point updates to support new encryption standards and document formats
- SMP evolutions for e.g. SMP 1.3.0, SMP 2.0, Peppol Business Cards, Peppol Directory integration
- Creating end-user documentation
- Providing technical support to your customers.
This easily adds up to perpetual draw on human resources that amounts to several weeks per month. A demand that cannot be alleviated without abandoning the entire access point product.
The solution: utilise an off-the-shelf e-invoicing API
The good news for software companies and businesses alike is that direct connectivity with Peppol, whereby an organisation’s CRM, ERP and/or accounts receivable systems are integrated via a certified e-invoicing API, can be achieved using an off-the-shelf solution.
With a certified off-the-shelf e-invoicing API, there’s no need to build a separate access point. Software companies can serve their customers in the fastest and most efficient way simply by utilising a ready-made product. Why take on the uncertainty of pouring years of time, effort and resources into an exercise which is, essentially, re-inventing the wheel?
Discover more: How to choose the right e-invoicing API
The Flowin e-invoicing API is a perfect example of an off-the-shelf e-invoicing solution that can be implemented in less than one month, providing a reliable, yet speedy fix for an essential need. At the same time, a product such as Flowin relieves software companies of a significant ongoing burden of maintenance, further development, mandatory updates and provision of support.
Whether your customers are in a hurry to get on board with e-invoicing now, or suddenly realise they need to when legislation comes into force, an off-the-shelf API quickly satisfies everyone’s needs.