Electronic invoice or e-Invoicing is a means of proving transactions in a far more reliable, convenient, and safe way. It fulfils the same role as traditional invoice which is legally equivalent although it has a lot more benefits, becoming an essential tool for companies.
This is why implementation of electronic invoicing systems continues growing on several financial sectors. It is a widespread reality both in Europe and Latin America. Taking Spain as an example, during 2018, 181,884,086 electronic invoices were issued, 14.92% more than in 2017. Thanks to this, Spanish companies saved more than €900,000,000 on invoice reception managing that year. Over the Atlantic, e-Invoicing has already reached the United States, Canada and around South America, Central America, and the Caribbean, recovering from Europe as per implementation degree.
Great things about having an e-invoicing system
Making a GST e-invoice is usually the responsibility of any taxpayer who reports to the IRP in GST. Next, the IRP will create a unique IRN and a QR code. The taxpayer can scan this QR code, remove the IRN, and fetch invoice details. For more detail please visit, الفاتورة الإلكترونية
Here are some benefits associated with e-invoicing for businesses:
- E-invoicing can help you with data reconciliation and precision during manual data entry.
- It allows interoperability across businesses.
- You can keep tabs on the e-invoices in real-time.
- The e-invoice details will be auto-populated on tax go back forms and e-way bills, making the tax go back process easy.
- All transfer details will be available online at all times. This would eliminate the need for consistent audits and surveys. Differences in data can be caught by assessing input credit and output tax.
- This initiative will also build efficiency within the tax administration by assisting to identify fake invoices.
Economic financial savings:
Electronic invoicing allows a substantial optimization of the resources used for working with it, therefore the business expenses are reduced. The expenses incurred when purchasing the electronic invoicing software (electronic transmission costs) is quickly paid, which is much less than printed invoices.
- Materials: Traditional invoicing involves high costs related to invoice issuing and sending: ink, paper, postage, etc. are avoided with this digital technique. An identical situation shows up when getting and working with e-billing: mail controlling costs, critiquing, data entering, recording, etc.
- Storage space: Electronic invoices do not need a physical storage space, so more space is saved and, consequently, rental or electricity fees are saved too.
E-Invoicing uses automated and intelligent strategies, reaching greater results than manual ones, as well as enabling a significant saving of the time focused on them (around 70%).
- Lowering of repeated duties and duplication: A single dedicated system manages the whole process, and it works as fast as possible.
- Easy and fast integration with other documents: Given the automated labelling and classification process, merging several domains, documents are quickly arranged and multiple links with other documents are manufactured.
Electronic invoicing solution guarantees the reliability of the machine for a fantastic service. So, individual’s errors are avoided on data entering and record classification and labelling.
Another great good thing about e-Invoicing. Identical to other fields, doc and process digitalisation significantly reduces enough time required. In the case of electronic invoices, payments are speeded up and collection times are reduced, as submission is nearly immediate and e-invoices may be tracked and monitored.
Definitely not heavy folders containing tons of newspaper, digital documents allow for a quick access with the same safety level.
- Search anywhere: Whenever we have an electronic management system, documents can be accessed with out a physical search at a safe-keeping place. Once again, it responds to the manager requirements, even as are more and more used for an on-the-go access to information.
- Intuitive categorisation: A common problem when accessing to imprinted documents is not knowing where or how looking. Electronic invoices are classified corresponding to correct and broad domains, so finding them is much faster. Moreover, data files can be stored in multiple formats (pdf, jpg, html…) in order to adjust to any requirement.
Protection against fraud:
E-invoicing is rolling out a very safe system lessening the chances for fraud or document forgery.
- Digital keep tabs on: Electronic invoicing records payments and other financial businesses, so money traces are easier to screen. The less physical money circulation persists, the more the fraud is reduced.
- Digital seals and certificates: Unlike branded invoices, e-invoices are created with digital technology issuing unique and unrepeatable seals or certificates. In this way, chances of report forging or duplicity are reduced.
Besides cover against fraud, electronic invoicing has other safeness related benefits.
- Assurance of integrity and sender authentication: SERES e-invoicing protection system creates an authentication gain access to via qualifications encrypting any mailing to assure a safe exchange.
- Reliable compilation and data copy: Data are protected against potential file loss or third party’s intrusions.
- Preservation: File readability and properties are kept undamaged over the years.
Function of responsibility:
Electronic invoicing is not only a commitment to the business itself and its own employees, but also to other stakeholders.
- Environment: Thanks to e-invoices large sums of newspaper, ink, energy… are saved.
- Clients and suppliers: The organization offers a fast, easy, and safe service keeping time and money to both parties.
- Society: A firm using the e-invoicing system is employed to transparency, basic safety and fight against fraud.
As we’ve seen, electronic invoicing entails multiple benefits for the company and its own context. That is why it is featured as the most reliable solution for today’s and the continuing future of companies, and many organisations consider it a compulsory necessity.