Some of the most valuable resources in a business are time and effort. Having that said, did you know that your businesses can become a lot more efficient when using an e-invoicing solution?
Almost all businesses need to invoice someone for something. And recently government suppliers have been mandated to strictly send e-invoices when submitting invoices to the government.
In this article, you'll read everything about why it's recommended to use an e-invoicing solution as a government supplier. .
What is an E-Invoice?
E-invoices (often XML files) are sent directly from one bookkeeping system to another. It's a structured, digital file with information such as company name and number. Be aware, however, that an electronic invoice is not a PDF file.
Because e-invoices are sent from one system to another, it's no longer necessary to process invoices by hand. This way, an e-invoice lands directly in the recipient's accounting software without manual interference. This creates a lot of efficiencies both in the long and short term.
Benefits of E-Invoicing
1. Saves Time
Time is an essential resource in any business and using e-invoicing cuts out a number of unnecessary manual steps that tend to eat up major time. Both you and your client will be saving time with an e-invoicing solution.
2. Reduces Cost
E-Invoicing is completely paperless, which means you’ll no longer have to pay paper or postal fees. Since your staff won’t be consumed with using templates or emailing PDFs, you save working time. Your employees will be able to use their time more efficiently on other value-adding tasks.
3. Fewer Mistakes
Increasing automation and reducing manual input means there is less room for human errors such as typos. And you’ll never have to worry about your invoice being lost in the mail.
4. Better Customer Service
It’s typically more convenient for your clients to get an e-invoice to the platform of their choice rather than a traditional invoice. Receiving an e-invoice compared to a traditional invoice can save processing costs. When delivery time is shorter, the client has ample time to take advantage of any early payment discounts.
5. Faster Payment
An e-invoice can be sent directly into the financial software of the recipient. Since it requires less time and effort to pay an e-invoice, the client will likely send the payment much faster compared to a traditional invoice.
6. More Eco Friendly
As the processing is fully digital, e-invoicing means there’s no need to use paper and waste resources. Why not save the planet in the process?
7. Easier to Track
An e-Invoicing solution gives you the power to know when an invoice has been sent, viewed, and paid. Depending on your specific solution, you may even be able to see when the client has simply viewed the invoice.
8. Insights on Invoicing
Utilizing online e-invoicing solutions ensures that all documents will be saved on one platform, which means it is accessible from almost anywhere. Having all of these documents stored on the same platform allows you to get an overview of your invoicing through automated reports and analytics.
9. Globally Accepted
Many countries have laws requiring that sales be documented through e-invoices. For instance, all public sector entities in EU countries need to be able to receive e-invoices from their suppliers, and the e-invoice must be compliant with the European standard.
E-Invoicing has become a globally accepted, and in many cases demanded, form of documenting sales transactions.
Regardless of how your business operates, e-invoicing software has many options that make it customizable to your process. If you still prefer to use spreadsheets for invoicing, that capability can be added with different templates. You can still update your invoice without changing your process.
11. Data Integrity
A completely digital invoice means that the chance of fraudulent bills is greatly reduced. The authenticity of an e-invoice can be validated automatically, which reduces the risk for both parties.
12. Industry Standard
E-invoicing has already become the default for almost everyone, especially in the B2B and B2G world. It would be beneficial to start e-invoicing now as it is bound to become mandatory for most businesses fairly soon. Clients will start to demand it and some companies may even start refusing to accept any other form of an invoice.
Why is E-Invoicing Important for Government Suppliers?
If your business is internationally active or a supplier to the public sector, then e-invoicing is an inevitability.
Governments are the main driver of e-invoicing as the EU standard 2014/55 requires more than 300,000 public administrations in EU countries to be ready for e-invoicing.
By February of 2020, 24 EU countries have implemented a B2G e-invoicing solution, offer e-invoicing to suppliers or require a B2G e-invoicing solution already.
But not only EU countries have e-invoicing mandates. South- and Central America, for example, are the dominant continents when it comes to e-invoicing adoption, and continents like Asia and Africa are currently building unique frameworks or connecting to established ones.
B2G Invoicing with PEPPOL
Pan-European Public Procurement Online, or PEPPOL, is a set of guidelines designed to streamline procurement between companies and government entities regardless of their location or system.
These guidelines are so versatile that they have been adapted to other sectors apart from Europe or B2G.
Many companies choose to use the PEPPOL system as a guide for developing their e-invoicing system.
This helps businesses to elevate their e-invoicing systems and communicate more effortlessly with government entities as well as other companies.
More information about E-invoicing Solutions for Government Suppliers?
- How to send e-invoices to governments and ministries?
- E-invoicing Status Per Country Overview
- Storecove provides e-invoicing solutions for Australia, New Zealand and Singapore
- International e-invoicing: How to send e-invoices to other countries?
- PEPPOL Directory - Use this Tool to Search who's on Peppol
- How to register on Peppol?