Sage says e-invoicing could unlock C$82 billion in Canada

Sage has published research saying wider use of e-invoicing could unlock C$82 billion in annual productivity gains in Canada. The study was based on a survey of more than 2,000 Canadian business owners and senior leaders.

Only 7% of Canadian businesses currently use e-invoicing, according to Sage, despite estimates that it could also release about C$21 billion in trapped cash flow into the economy.

The findings put the value of overdue invoices at roughly C$103 billion, highlighting the scale of payment delays facing businesses across the country. Half of respondents said late payments damage cash flow, while 27% said they prevent investment in future growth.

Canada lags behind other markets on adoption, Sage said, citing usage rates of 17% in the UK and 32% across Europe.

Payment delays

Invoicing and payment problems are a regular issue for many firms. Seventy-four per cent of business owners and senior leaders said they face such issues at least monthly, and 38% said they deal with them every week.

Awareness appears to be a major obstacle. The survey found that 42% of businesses have never heard of e-invoicing, while only 14% said they are familiar with it.

Sage distinguished e-invoicing from invoices sent as PDF email attachments, saying it transfers invoice data directly between the accounting and finance systems of businesses and their customers, reducing manual processing.

The company is using the findings to call for a national consultation led by the federal government. It said the process should involve industry, provinces, standards bodies and the Canada Revenue Agency to create a standardised framework and support phased adoption.

Businesses surveyed were split on whether Canada should introduce a national e-invoicing mandate, with many favouring incentives rather than regulation alone. Education, implementation support and financial incentives were identified as factors that could encourage wider uptake.

Productivity focus

The research comes as policymakers and business groups continue to debate how to improve Canada's weak productivity performance. Sage argued that time saved on administration could be redirected to more productive activity within small and medium-sized businesses.

"For small and medium-sized Canadian businesses who underpin our economy, time savings lead to real financial impact: too many leaders are spending valuable time on administrative tasks that stall the financial process," said Cinzia Bazzo, Managing Director, Canada at Sage.

"E-invoicing is a digital tool that will have a tangible impact for businesses, enabling them to get paid faster, improve cash flow and focus their energy on growth. That's exactly the kind of practical digital adoption Canada needs more of," Bazzo said.

The survey results were weighted to Statistics Canada business counts by business size, sector and province. Sage said the headline estimates for productivity gains and trapped cash flow were modelled using the survey data alongside official statistical data.

The company also pointed to work on e-invoicing in other countries, including the UK and France, as examples of government-led efforts to build common standards and implementation frameworks.

For Canadian businesses, the immediate picture from the data is one of slow payments, limited awareness and low adoption of a tool that Sage says could reduce administrative work at scale. An estimated C$103 billion remains tied up in overdue invoices.