Email, e-commerce, e-books, e-learning... The letter "e" at the beginning changes everything. Highlighted and separated in some cases with a hyphen, that letter has been synonymous with technology, progress, the future, and modernity for decades. A letter that has also brought us enormous satisfaction as a technology and financial company. In this article, we want to focus on the core product of our entire service: electronic invoicing. We are talking about nothing less than e-invoice and we will take this opportunity to discuss the contrast between digital invoice and the conventional invoice.
Definition of e-invoice
As professionals in the sector who carry out digital invoicing projects, at easyap we begin by giving you our own definition of what we understand by e-invoice. Likewise, it is a a receipt for the provision of certain services or for the delivery of one or more products, but one that is issued in electronic format. It should also be noted that it has the same legal effects as a conventional invoice.
Therefore, e-invoicing is the alternative to conventional invoices (paper, PDF, etc.) and has become increasingly popular in recent years with the rise of digital technology. Currently, these two types of receipts, which have the same legal validity, still coexist. Just visit any small business where paper invoices and receipts are still used and kept in order and recorded in that format.
However, based on the data, trends, and the regulations governing electronic invoicing themselves, electronic invoicing regulations of governments around the world, it seems that we are already immersed in the moment of change from conventional to e-invoicing.
What are the advantages of using electronic invoicing?
In this battle between e-invoicing and conventional invoicing, which is still being fought in a large number of businesses and accounting departments, the main difference between the two contenders is the medium in which they are issued. In other words, one is completely digitized and computerized, while the other continues to be issued and managed on paper.
However, this single difference numerous advantages arise. Benefits that tip the balance in favor of e-invoicing, especially in the present and the near future. Just ask the many executives who have already implemented a digital invoicing system like the one we developed at easyap.
With technological solutions such as the one we offer, you can enjoy benefits for your business such as:
- Reduction of economic costs associated with billing processes. Expenses such as paper and printing materials, postage, transportation, and cash management, among others.
- Time optimization. Shipments and processes through a digital billing system are significantly shortened. Therefore, you can invest the time you save in other business activities.
- Use of resources and equipment. Just as you can allocate hours that were previously spent on conventional billing tasks to other tasks, the same applies to staff and equipment. In other words, you will be able to dedicate human resources to other areas of the company.
- Sustainability and improved environmental impact. Reducing the number of physical invoices sent means less paper is needed. In fact, it is estimated that issuing 1 million conventional invoices requires the felling of 56 trees. E-invoicing avoids this felling and protects and cares for the environment.
Broadly speaking, these are the general benefits that e-invoicing offers over traditional invoicing. However, if you implement an electronic invoicing system with a reputable company, the list of advantages can be much longer.
The benefits of implementing your digital invoicing system with easyap
Without going any further, at easyap we have developed a solution for your e-invoices that, in addition to the general benefits we have just listed, will also allow you to:
- Set up a supplier portal where those with whom you have electronic invoices in progress can conveniently check their status. A significant improvement in efficiency and communication with your customers and suppliers.
- Record all your employees' expenses on a single platform where all invoices for meals, flights, and transfers, for example, are entered.
- Comply with tax obligations that you have to meet depending on your tax regime.
In addition, our software is compatible with any accounting package and ERP workflow. Therefore, you can implement this system for your e-invoices right away without any complications. On our end, it will take less than a week to install and we will not charge you anything for the configuration.
The impact of e-invoicing on businesses
But returning to the role of e-invoicing in the contemporary business world, the impact of e-invoices is a palpable reality. Whatever the field, the best way to argue a point is with facts and figures. According to the business magazine TICPymes, the number of e-invoices issued in Spain in 2021 was 296,469,689. This figure represents a growth of more than 28%.
Last year, the use of e-invoicing also generated savings of €2.3 billion for Spanish companies. savings of €2.3 billion. This figure represents a 23% more than the savings made in invoicing during 2020. Moving away from the economic aspect and focusing on the environmental one, these savings generated by e-invoicing avoided the use of paper equivalent to 16,486 pine trees.
What is also true is that the adoption of electronic invoicing is faster in the public sector than in the private sector. Many of the figures we have just discussed are due to measures promoted by the administration to encourage e-invoicing throughout the national business fabric.
Without going any further, in Spain the use of digital invoicing in transactions with public bodies. These measures are both national and regional, with many governments using digital systems to control corporate taxation. A good example is TicketBAI in the Basque Country. In short, both the figures and the policies adopted are the best reflection of the fact that automation in the generation of invoices using digital systems is a reality and also the future.
What types of e-invoices are there?
Taking the leap into a future where digital replaces conventional methods should not be something to fear. Your business can and should take this big step because tomorrow is online, and that is where your customers and suppliers will be. Furthermore, there are no major differences between e-invoicing and traditional paper invoicing.
In fact, the types of e-invoices that exist in this new digital scenario are the same as those you have known and managed until now. The only thing that changes is the format. In other words, the types of e-invoices are the same as those you knew and processed until now:
- The ordinary and basic invoice that we all know.
- The simplified, also called a ticket, which records the same information as the ordinary receipt, i.e., a sale transaction, but in a more summarized form.
- The rectification, which is one that replaces a previous invoice that contained an error or mistake and had to be corrected.
- The summary, which groups together several invoices issued to the same customer within a specific period of time.
- The proforma, which serves as a provisional invoice prior to the regular invoice, although it has no legal validity. It simply anticipates the main items that will later be included in the regular invoice.
All of them are e-invoices, since with a better e-invoice solution such as easyap, you can process them from software. What has changed is the medium, which used to be paper and is now a program.
We have already shown you that the battle between e-invoicing and conventional invoicing is beginning to have a clear winner and that the balance is irrevocably tipping to one side. Therefore, all that remains is for us to say that we are waiting to accompany you in the digitization your business. A process that may seem daunting now, but will bring you multiple benefits in the near future.
