Even when we have totally digitalized our way of working, there are always new concepts coming up that will not sound as familiar. Electronic invoicing is, for a lot of people, one of these terms. We can vaguely guess that it has to do with invoicing in a digital format, but when trying to find out more about how to make use of e-Invoicing in our company, plenty of questions arise. For this reason, at EDICOM we have compiled a list of FAQs regarding electronic invoicing, which can be used as an introductory guide to the e-Invoicing universe.
What is e-Invoicing?
E-Invoicing is the process of transforming paper-based invoices into digital documents. These outcoming documents, when properly done, must respect a previously established format that will allow them* to automatically flow from your computer to you customer’s. They also often include add-ons to guarantee the authenticity and integrity of the document, like electronic signatures or Tax Control Codes.
What are the benefits of e-Invoicing?
Electronic invoices share some benefits with other paperless novelties, but also have some unique benefits of their own:
Time is saved, since e-Invoices can be quickly created and automatically sent.
Money is saved, since no printing and mailing is necessary.
Human resources involved can be reduced due to automation.
No physical space is used for storage, which also becomes more organized.
Because of their particular format, they can become a powerful tool to fight tax evasion.
They are environmentally friendly.
How are electronic invoices created?
A specific technology is needed to create electronic invoices, whether you develop your in-house e-Invoicing system or you prefer an external solution. With EDICOM’s solutions, for instance, the invoices are first created through a simple and intuitive web form, or automatically from your ERP. Data structure and standards are then transformed to match those expected by the receiver, right before the e-Invoice compliance is sent via the communication protocol required in each case.
Which electronic invoicing solution should I choose?
Each company has different necessities when it comes to e-Invoicing, so it is almost impossible to choose an electronic invoicing solution that will work for all of them. Because of this, EDICOM’s software solutions can adapt themselves to give each client the best possible mix of solutions and services, depending if the company operates in different countries, if it has an ERP or not, if the customer has an EDI platform or not…
Which electronic invoicing softwares should I avoid?
It is easy to find free electronic invoicing software, and it is also easy to fall into the mistake of thinking this will be enough. Many of these software products are successful at creating an electronic document that may look like an e-Invoice, but with no authenticity or integrity guarantees or format protocol. Remember that electronic invoices are much more than a simple digital document or a scanned version of a paper-based invoice.
Is electronic invoicing mandatory?
Electronic invoicing is currently not mandatory for companies working within the United States. However, it remains an interesting option for companies working with a large volume of invoices or for those planning to expand internationally, since e-Invoicing is mandatory in many other countries, many of them located in Latin America.
Is electronic invoicing equal in other countries?
No. The electronic invoicing regulations are irregularly developing around the world. For some countries, e-Invoicing is mandatory. In some regions, like Europe, it is mostly a B2G model, while in others, like Latam, electronic invoicing is also mandatory for B2B transactions. Plus each country has its own invoicing model. This is why EDICOM is ready to offer an international e-Invoicing solution for companies working abroad, thanks to a global e-invoicing platform that is constantly updated by our Permanent Electronic Invoicing Observatory.
Do you have any questions that weren’t answered in the FAQ? Contact EDICOM and we will be pleased to help you.