What is an e-invoice?
An e-invoice, or electronic invoice, is an invoice sent in electronic format and receiving. This is an efficient, environmentally friendly and cost-effective way to send and receiving invoices, compared to traditional paper invoices.
Benefits of the e-invoice
The e-invoice brings numerous benefits, including:
- Cost savings: Reduced printing and shipping costs.
- Efficiency: Faster processing time compared to paper invoices.
- Sustainability: Reduced paper use, contributing to environmental protection.
- Safety: Reducing risks of loss or damage.
- Real-time insight: Immediate access and overview of your billing.
- Fewer errors: Automatic input reduces the likelihood of errors.
- Laws and regulations: Meets legal requirements for billing.
Differences from other invoice formats
While an e-invoice is a digital document, there are other electronic invoice formats such as PDF invoices.
Below we explain the main differences between e-invoices and other commonly used invoice formats such as PDF and paper invoices.
Automatic Processing
E-invoices are automatically processed and entered into the recipient's accounting system. This means no manual entry is required, which significantly reduces the likelihood of errors. In contrast, PDF and paper invoices must be entered manually, which is more time-consuming and more prone to errors.
Security and Privacy
The sending of e-invoices is done over secure networks, ensuring data integrity, authenticity and confidentiality. Unlike e-invoices, paper invoices can be damaged or lost during the transmission process, and PDF invoices can pose risks if sent via unsecured e-mail.
Accessibility and Clarity
E-invoices are instantly accessible and can be easily searched in a digital system, providing a better overview and understanding of financial administration. Paper invoices must be physically stored and are more difficult to search, and PDF invoices must also be stored in an organized manner to remain accessible.
Conformance and Accuracy
E-invoices are prepared using a standardized format that enables automatic processing. This promotes accuracy and compliance of financial data. On the other hand, since PDF and paper invoices are entered manually, they are prone to inconsistencies and errors.
Cost
E-invoicing can result in significant cost savings by reducing the costs of printing, postage and manual processing. PDF invoices, while avoiding printing and postage, can still incur costs due to the manual processing required. Paper invoices, on the other hand, incur both printing and postage costs.
Paper invoice processing versus e-billing
Perhaps you still often receive invoices through the mail. Archiving these is often a time-consuming activity. However, an e-invoice can be read and processed directly into your software fully automatically, without any additional actions. PDF invoices still require various actions such as scanning and recognition and verification by an OCR tool.
Choose e-billing
The e-invoice is a modern, efficient, and sustainable solution for both small and large businesses. It automates and simplifies the invoicing process, saves costs, and contributes to a better environment. Would you also like to switch to e-billing and enjoy all the benefits? Then contact us today for more information and tailored advice!
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Do you have questions or want to know more about our e-billing solutions? Please get in touch. We will be happy to help you!
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