Digital invoices are gaining momentum, but what exactly are digital invoices? Are they just PDF documents or something else entirely? This blog explains it in detail.
It also tells you about the advantages of digital invoicing and how it will help you manage your administration much more efficiently.
Digital invoices (also called electronic invoices, e-bills or e-invoices) are invoices that you can send, view, and process digitally (i.e. on a computer, tablet, smartphone, etc.).
You may immediately think of scanned paper invoices or invoices in PDF or Word format, but in fact that is not what we mean by this.
'Real’ digital invoices have a fixed structure, which is why we also often refer to them as structured electronic invoices or SEIs. Thanks to this structure, software packages worldwide can read and process these digital invoices fully automatically.
Specifically, an SEI is a computer file in XML format (XML stands for Extensible Markup Language). So, it is a text file without any layout. The standard language used for such invoices is called the Universal Business Language or UBL.
SEIs are generally not sent by email but over a secure network. The Peppol network is the best-known example, although other networks are used in some countries.
In short: e-invoices ...
Conventional paper invoices require a lot of time to process. They have to be sent, received, checked, paid, etc., and you need to keep a close eye on whether your client pays on time and send payment reminders if necessary. Furthermore, there is a fairly high risk of human error in paper-based processes.
The result is wasted time, higher costs and negative effects on your business because you have less time to spend on your company's core activities that add real value.
Today’s digital capabilities let you fully automate your invoicing process to save time and avoid errors.
The advantage of an SEI is that all invoicing data are captured in a fixed place in the digital file. It means that specialised software packages can use it to automatically perform tasks you used to have to do yourself.
Tasks such as:
Needless to say, this will translate into significant efficiency gains and cost savings. And there is more: e-invoicing will also speed up the processing and payment of your invoices, which, in turn, will benefit your cash flow.
Billit not only lets you create digital invoices very quickly but also send and receive them via Peppol and all other common e-invoicing networks.
Billit’s many useful features and integrations with other software packages allow you to automate your business processes as much as possible, so you can really concentrate on building your business.
No doubt you have already heard that more and more countries worldwide are requiring or considering mandatory e-invoicing.
The primary reason for this requirement is to prevent invoice fraud and close the VAT gap (the difference between the expected VAT revenue and the VAT revenue actually received). This is because digital invoices make it easier to detect fraud, on both a national as well as international levels.
If such an obligation exists in your country or if one is forthcoming, this should certainly not put you off. As we said above, digital invoicing has numerous advantages for your business. So, let’s take the step towards a digital future together!
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