Although you may think so, you are not alone. You are not the only one who still feels lost in this new digital landscape. So don't worry if you have questions every day about electronic invoicing for your company. To clarify this key term in the world of accounting and finance, we at easyap have written this article on online invoicing. We explain what it is, its main features, how it differs from electronic invoicing, and what advantages it can offer.
What is an online invoice?
Starting with a definition, at easyap, experts in electronic invoicing, we would say that an online invoice is any document that you generate, send, and manage electronically. In turn, it replaces the traditional paper invoice, which is practically disappearing. Therefore, it must meet the same legal and tax requirements as the latter.
All online invoices must contain detailed information about a commercial transaction. In other words, you must include all the legal information required by the government. We are referring to the billing information of the seller and the buyer, the products or services purchased, the date of the sale and the due date, the price, and the taxes corresponding to the transaction.
Although we will go into detail later about the benefits it offers, here are the main ones. This type of invoicing help automate a company's administrative and accounting processes. In addition, they also allow tax authorities to better control the economic flows of the business fabric. This is known as traceability. They even provide companies with other advantages such as eliminating paper consumption and reducing environmental impact.
Advantages of electronic invoices
As we mentioned in the previous paragraph, online invoicing, due to its format, offers numerous benefits. Not only for companies, but also for the agencies that regulate taxation in a given territory. In addition, the planet also benefits from the use of this type of invoice. Below, we detail the main advantages of online invoicing.
Time and cost savings
By generating your invoices online and sending them, you will be carrying out a much faster and more efficient billing process. Therefore, it is more cost-effective for you. In addition, the process of receiving and managing these invoices is also more efficient, which saves time and reduces management costs .
Reducing environmental impact
By eliminating the use of paper, ink, and physical shipments with courier and parcel services, online invoices help reduce the environmental impact of businesses. Therefore, they are also a perfect way to promote sustainability.
Enhanced security and confidentiality
Online invoices are protected by security measures and encryption. Therefore, they guarantee confidentiality in terms of data management and prevent possible fraud or falsification of the documents themselves.
Process automation
This type of invoice, when processed automatically by systems such as easyap, reduce human error. In turn, they also reduce the time your team will have to spend on the invoicing process and can even can be automatically integrated with other systems and processes that you carry out in your company.
Ease of access and improved storage
Digital or online invoices can be managed much more conveniently. The reason is that you can access them from any device with an internet connection and they are stored securely and permanently on servers or cloud storage systems. Likewise, you make it easier for teams, suppliers, and customers to consult them at any time, which will improve your communication and relationship with them.
Are online invoices and electronic invoices the same thing?
At this point, many people who are unfamiliar with the digital world ask themselves a question that may seem extremely simple: Are online invoices and electronic invoices the same thing? However, it is worth answering and explaining the difference between each term.
The answer is yes yes. Online invoices and electronic invoices are terms we use interchangeably to refer to any type of invoice that is transmitted electronically. Both refer to any invoice that complies with the legal and tax requirements of a specific country or region, but which you generate and send digitally, rather than printing and sending by post.
The difference is that the term "online" is an Anglicism that we have adopted into our language. Translated literally, we would refer to it as an online invoice. In turn, the term "electronic" refers to the same idea. Therefore, for practical purposes, electronic invoice and online invoice are indeed the same thing.
Is a PDF invoice the same as an electronic invoice?
When doubts arise, it is when comparing PDF invoices and these online invoices. Are they the same? Which is more convenient? Why use one or the other?
As we defined at the beginning of the article, the online invoice is generated and sent directly from invoicing software such as easyap. In other words, with an electronic invoicing system or cloud-based accounting platform, which is managed via the internet and from which the file is also sent directly to the recipient through the platform itself.
On the other hand, a PDF invoice (named after its format, which stands for Portable Document File) is an electronic version of a paper invoice, which can be downloaded from a website or email. However, you need a place to store them, whether in folders, device memory, or cloud storage. If you save them in folders or device memory, there is greater risk of losing the files if the device in question breaks down.
On the other hand, it should be noted that the format of invoices is an important issue, especially when it comes to filing taxes in certain regions and with certain tax authorities. Both are government agencies that only accept certain formats and/or platforms: UBL, FACE, etc.
Therefore, we can say that the main difference between an online invoice and a PDF invoice is that the former is generated, managed, and sent directly from software such as ours, while the latter is an electronic version of a printed invoice that can be downloaded in the same format. Even so, it is not as convenient due to the limitations of the single PDF format, which is downloadable and requires storage.
How do they increase business productivity?
The fact is that online invoices increase business productivity in several ways:
– Saving time throughout the entire process of creating, validating, issuing, and managing invoices.
– Reducing data entry errors and human errors. It also reduces the time and resources needed to correct such errors.
– Optimizing tracking, as it will be simpler and more accurate. This helps companies to better manage their cash flow.
– Offering better access and more secure storage. Online invoices are securely stored in the cloud and are very easy to access.
So online invoices allow you to focus on other areas of the business, which increases overall productivity.
Reasons to use electronic invoicing software
Now, it may be that what makes you panic is managing the process of create and send an invoice online. In that case, you have nothing to worry about. This is where a solution like easyap comes in. Our software generates and sends your invoices without any complications. Not only that, but it also stores them in the cloud so that you, your team, your customers, and your suppliers can access them.
In turn, our software not only creates your invoices online, but also allows you to validate them. In other words, it creates an invoice that complies with the legal requirements of your region or country.
In addition, with our solution , you can store your online invoices in the cloud for as long as required by law. That way, in the event of a tax audit or for business needs, you or another authorized person can check or review them.
What's more, with the solution we develop for you at easyap, you'll enjoy a program that goes far beyond the creation of digital invoices. With our solution:
- You will issue all types of electronic invoices to customers directly from the software.
- You will have a portal where you can manage all the receipt of paper and electronic invoices from your suppliers. from your suppliers, both paper and electronic.
- You will install a system that is compatible with any other accounting package and/or ERP workflow you may be using.
- You will pay for each invoice processed, making it a solution that adapts to any type and volume of business.
- Your employees will be able to quickly and easily enter all expenses incurred in the course of their work.
We have been working on these types of solutions for more than two decades in all kinds of industries and in various countries. That is why, in addition to our knowledge of the financial world and our mastery of technology, we have extensive experience in projects of all kinds. Just contact us to find out more and start digitizing your company and your invoices.
