It may sound repetitive, but it's a mantra that we've already made our own: either you're a digital company or you're not. It doesn't matter what your business is, what sector you're in, how many employees you have... The future is already here, and any organization that refuses to accept this is doomed to failure. The day-to-day processes that have been used in any market are still there, but in a different form: automated, simplified... in short, in companies that thrive or want to thrive, digitized. And invoicing is one of them. That's why, in this article, we're going to give you some guidelines so that, if you don't already do so, you'll know how to use electronic invoicing for your company and why you should do so.
Why teach how to use electronic invoicing?
Not everyone is familiar with new technologies. Even less so when we consider that many of the executives and financial managers who currently hold senior positions belong to the so-called Baby Boom Generation. This is a very broad segment of society, born between the 1960s and 1980s, and it is essential to show them how to use electronic invoicing in their company or business for the following reasons:
- These are individuals who, due to their age, experience, and knowledge, hold positions of influence. They are responsible for financial controls of large organizations or their own moderately established businesses.
- In many cases they lack training in electronic invoicing, as they are not accustomed to digital processes.
- They are afraid afraid to implement these technological advances in their businesses due to sheer ignorance.
Likewise, in many cases we find that with good training on electronic invoicing and the advantages it has for a business, we would save costs. Mainly, time and money for many of these executives or finance managers. Or, better yet, encourage them to trust the services of finance and technology specialists who know how to use electronic invoicing and have solutions for it. Yes, solutions like easyap.
How does electronic invoicing work?
So, let's get down to business. But first, let's lay the groundwork and point out that the invoicing process as a concept is very similar to that of, say, 30 years ago. That is, any process in which the delivery of goods or the provision of a service by a company or legal entity is recorded in accordance with current legislation.
Well, the act of invoicing, at the request of the Treasury, , seeks to prevent fraud and scams at the fiscal and tax level by recording commercial transactions. Thus, for this invoicing (electronic or analog), an invoice is issued, which reaches the recipient recording the transaction following these phases or steps:
- Include in the invoice the terms and conditions agreed upon with the customer beforehand. That is, you will have to add the agreed price, the form of payment, the deadlines for it, and so on.
- Formalize the document certifying the provision of the service or delivery of the goods. In other words, we are talking about what we traditionally know as, for example, sales delivery notes or reports.
- A third, more technical step that must be taken is calculating the invoice, with a period for issuing it for payment and taking into account the first two steps.
- The next step will be the actual issuance of the invoice, either through a digital solution such as easyap or, for those who still refuse to make the leap to digital transformation, in analog form. In the case of paper invoices, the paper will have to be kept for tax and taxation purposes.
- All that will remain is the sending the invoice, which will be tracked and recorded step by step in a solution like ours, which is digital, convenient, and efficient.
Now that we have explained these stages of the invoicing process, the reality is that with a system such as easyap, the steps are simplified. In fact, if you implement a digital system or know how to use electronic invoicing, the entire process will be simplified in the last two steps. Therefore, the savings and time optimization are considerable. Time that you can also devote to other work and financial tasks in your business.
What does an electronic invoice need to have fiscal value?
After reading this far, you will see that the ordinary invoice, which we have briefly described above, is a very useful tool for administrations. Invoices are used to carry out fiscal control of companies' operations, as well as whether or not they comply with their tax obligations.
However, the ordinary invoice, whether digital or analog, is not the only type of invoice that exists. So, what is an electronic invoice like? Here are some examples:
- Simplified electronic invoicing simplified, better known as receipt or ticket, which is the classic paper that records any purchase.
- The aforementioned delivery note, which has no fiscal validity and only serves as proof that the agreed goods have been delivered or that the agreed service has been fulfilled and provided.
- The pro forma invoice, which also has no fiscal value as it can be issued before the goods are delivered or the service is performed. However, it must be indicated in the header that it is a pro forma invoice.
- The summary invoice, which is an invoice that includes several different transactions carried out for the same customer and requires all the individual invoices to be attached to the summary invoice in order for it to be valid for tax purposes.
- A corrective invoice which is one that is issued after another because there has been an error. The error is corrected on the amended invoice, and it is specified that this is this type of invoice.
The type of invoice issued will greatly influence how each one is stipulated in terms of whether or not it is fiscally valid. This will help us avoid taxation problems. And the best thing is that all these specifications regarding the the tax validity of invoices, if they are digital, will be conveniently and quickly recorded in solutions such as easyap.
So, get in contact us and forget about what a non-tax invoice entails or means. With our system, all your electronic invoices will meet the requirements and tax and fiscal requirements you need. And the best part is that you will be able to issue all these types of invoices digitally.
Is it really that important to know how electronic invoicing works in Spain?
To conclude, we will answer this question that many financiers and executives still ask themselves today in a categorical and direct manner: Yes. In Spain, as we have mentioned in other articles on our blog, the use of electronic invoicing is mandatory for any transaction with the public administration. Since 2015, by law, all transactions with city councils, governments, public organizations, and institutions require digital invoices. A good example of electronic invoicing is TicketBAIin the Basque Country.
In line with the above, governments are also promoting the use of electronic invoicing for economic reasons. Funds and subsidies offered to many administrations for taking steps towards digital transformation. There are even cases in other countries around the world where the use of digital systems for invoicing processes in international transactions is supported by financial aid, as was the case, without going any further, in Singapore and the PEPPOLsystem.
Also, at easyap we recommend it for your own good and that of your business. You may feel ready to take that leap towards digitization of your company. However, implementing a solution such as easyap is ideal. The savings and optimization of resources, as everything is recorded and automated, are enormous compared to analog billing.
In fact, we recommend that you call us or visit us and turn to us for help. Why? For the simple reason that by implementing a solution like ours in your company you won't even have to worry about how to use electronic invoicing. The system does everything for you, complying with the relevant tax requirements and avoiding headaches and, above all, problems with the tax authorities.
And finally, why manage this transition to digital invoicing with easyap? Because we are a team of financial and technological specialists with more than 20 years of experience working in electronic invoicing and many more (albeit separately) in the finance and technology sector for large companies. We were pioneers and are now experts with incredible projects and work accomplishments under our belt all over the world. Does all this experience and knowledge still not encourage you to join us and get started with electronic invoicing?
