In simple terms, it is the process of sending, receiving, processing and paying invoices in a digital way. But from a practical perspective, it encompasses much more.
Managing invoices electronically creates numerous benefits for companies, authorities and organizations in the way they manage their finances, both in terms of customer and supplier invoices.
Why electronic invoice management? This question is also commonly asked. Actually, it's partly answered already, but let's dive deeper into the digital world and explore all the favors generated as well as provide some tips along the way.
Advantages
- Traditional invoice processing often requires a lot of manual work: printing invoices, sending them by post and manually entering data into the financial system. With electronic invoice processing, these steps are automated, reducing the time from invoice receipt to payment.
- Cost savings are another major benefit. Reducing the use of paper and postage is not only good for the environment, it also cuts costs. It also creates important time savings. Instead of monotonous repetitive work, time can be spent on value-adding tasks.
- Security is another important factor. Scam invoices are unfortunately common and, unfortunately, fraudsters sometimes succeed in their intentions. Especially common are fake PDF invoices sent by email, which are confusingly similar to genuine invoices. Electronic invoices avoid the risk of fraud. The e-invoice has an ID, which usually refers to the electronic address of the invoice. The identification proves who the issuer is. In addition, other IDs are also present on an e-invoice (usually GLN or Peppol ID).
- Improved accuracy is another benefit. Automating the invoice process minimizes the risk of manual errors. For example, incorrect data entry.
- More and more companies are requesting e-invoices. For the public sector, the law even states that incoming invoices should be issued in a structured electronic format that allows them to be processed automatically and electronically. PDF invoices do not meet this legal requirement. A PDF is just a photographed image of an invoice.
How to get started
- Choose a supplier. There are many services for electronic invoice processing. Choose one that fits the size and needs of your business. Look at features like integration with your existing financial system. If you're looking for an end-to-end solution that covers both inbound and outbound invoicing, and have it integrated into your ERP system, InExchange is of course an option.
- Switch to electronic invoicing. Inform your suppliers and customers about the transition. Many systems also allow paper invoices to be scanned and processed digitally. Something that is included, for example, in the overall solution of InExchange mentioned above.
- Train staff in electronic processing. Make sure that everyone who handles invoices understands the system and its processes.
- Evaluate and adjust. After a period of use, evaluate the system. Are there processes that could be improved? Are there any features you are not using that you could benefit from?
Do you also want to digitize your company's invoice flow?