Electronic invoicing. You're probably familiar with the term because you've read about it in other articles (hopefully on our blog). Or perhaps you already know what it is because your company, whatever its size, already uses it on a daily basis (hopefully with our solution). Or perhaps, even if you are not sure exactly what it is, due to its recent popularity, you have at least heard of the concept. Whatever your case may be, if you are reading this, it is because you are interested in finding out what electronic invoicing is, as it is becoming increasingly talked about in the media. So, at Easyap, we are going to break it down with questions about electronic invoicing that many people ask.
1. What is electronic invoicing?
The first question had to be the most basic and essential one. What is electronic invoicing? It is the traditional process of authenticating a purchase or exchange of goods or services between a sender and a recipient, but with the exception that it is done digitally. In other words, what until very recently (and in some sectors is still done) was done on paper is now done digitally through online invoicing.
To do this, it is necessary to have computer programs capable of issuing these e-invoices. Software such as easyap allows you, as the issuer, to simply fill in the standard fields of any invoice and send it to your customer. The system ensures that it reaches them and also records all this information within the system itself.
This makes the overall invoicing process for SMEs and large companies much more streamlined. With an electronic invoicing system, in addition to sending your invoices from wherever you want, all the data necessary for business accounting is stored and segmented for convenient subsequent management. We are talking about those laborious processes of preparing balance sheets, which, with the digitization of invoicing in SMEs and companies of all sizes, are much simpler and easier.
2. What is digital invoice reception?
Perhaps, if you are not very familiar with the business world, and even less so with accounting, the term "receipt" of electronic invoices may sound strange to you. Nothing could be further from the truth. The receipt of digital invoices is the accepting, managing, and digitally paying, as a customer, an invoice issued by a supplier for the purchase of a good or service. In other words, the opposite of issuing.
The thing is, you may now be wondering: does a system like easyap also handle the receipt of electronic invoices? The answer is yes. Just as we explained that our software takes care of issuing and recording each invoice, in the case of the invoices you receive, it does the same. The data collected in them is automatically stored in the system, greatly facilitating the accounting process for any financial manager or accountant in any company.
3. What advantages do they offer over conventional ones?
In the previous point, we mentioned that e-invoices greatly streamline accounting processes in companies. However, digital invoices offer several other advantages, which is why more and more companies are using them. Below, we list the main benefits of electronic invoicing and its application in business:
- They save a lot of time, since they are digital, sending and receiving them is much faster and more efficient than delivering a conventional invoice by hand or by mail.
- It offers the possibility of managing the workflow of a business's invoices from anywhere.
- Using the system and the pre-designed fields for each invoice, the process of filling in fields and issuing an invoice is much faster than doing it by hand, aided by the possibility of having the data of previous customers or suppliers already saved.
- The recording of data and information, both overall and specific data and information for each invoice allows for much faster subsequent general accounting analysis.
- For the same reason that all invoices are recorded and stored, all persons in the finance department who have permission will be able to access a single, unified site or space where they can consult the information.
- All transactions carried out are recorded in the system and leave a trace of the route they follow. Therefore, electronic invoicing is extremely useful for tax purposes and for complying with the relevant tax requirements .
- It even has a social and sustainable advantage, as it drastically reduces paper and ink consumption in offices and warehouses.
As you can see, one of the words that comes up most often when discussing the advantages of electronic invoicing is "savings." A real treasure for any entrepreneur, accountant, or financial manager.
4. Why has electronic invoicing become so popular lately?
Changing the subject, let's move on to current events. Why has electronic invoicing become so popular in recent times? We could answer that it is due to technology and its appearance in the media.
On the one hand, from a technological point of view, electronic invoicing is so important because it is part of the whole process of change that we are experiencing with the internet: digital transformation. Nowadays, people buy and live on the internet, and companies, eager for customers, do too. The tools they use to attract them are digital, so why shouldn't the evidence and documents of these commercial transactions be too?
On the other hand, from the media's perspective, electronic invoicing is very relevant for the reasons mentioned in the previous point. States, autonomous communities, etc. operate in a similar way to large companies: they sell goods and services and manage taxes. With electronic invoicing, they can much better control the taxation and tax collection of companies, and companies, in turn, can comply properly.
5. Is electronic invoicing mandatory in Spain?
For the reason mentioned in the previous paragraph, there are an increasing number of countries where electronic invoicing is mandatory. Without going any further, we are talking about all the public administrations in the EU. All of them are required to issue digital invoices from April 2020, according to Directive 2014/55/EU.
The EU is the main driving force behind digital invoicing. But these nations are joined by non-EU European countries such as Moldova, Ukraine, Belarus, Switzerland, Norway, Turkey, Albania, the United Kingdom, Iceland, and Liechtenstein. Even countries such as Singapore have promoted the the use of electronic invoicing with policies that subsidize it financially, as is the case with the PEPPOL systemsystem.
In turn, electronic invoicing in Spain is mandatory for any transaction carried out by the Public Administration, whether as a customer or as a supplier. Therefore, if your company sells products or services to an agency dependent on the State or any of the autonomous communities that comprise it, as you well know, you must work with electronic invoices.
In this regard, it should be noted that Spain is one of the EU countries that is most actively promoting the use of digital invoicing. In fact, we recently discussed the the Create and Grow Law, which aims to extend the mandatory use of electronic invoices to transactions between private companies of all kinds.
Perhaps because of Spain's emphasis on implementing electronic invoicing in businesses, it is one of the countries that will receive the most aid from the Next Generation Funds . And what are these European funds? We explain it in this other article we wrote at the time, but, broadly speaking, they are financial aid for the digitization of all business sectors.
Optimizing your business for digital invoicing
If you want your company to move towards digital transformation, it is essential to understand what an electronic invoice is and how it can improve your processes.
Having an electronic invoicing solution not only streamlines the issuance and receipt of your invoices, but also facilitates accounting management, reduces errors, and contributes to the sustainability of your business. Adopting this type of system is a key step in maintaining competitiveness in an increasingly digitized business environment.
6. Why start your electronic invoicing with easyap?
However, and to conclude, beyond the financial aid that a business can receive, electronic invoicing is interesting because it offers benefits such as those mentioned above. If you are not a digital native, all this may sound complex to you. However, it is the future.
At easyap, we have been implementing our solution in companies around the world and across a wide range of sectors for more than two decades. In addition to our extensive experience in the world of digital invoicing, our team is made up of specialists in both the technology and finance sectors.
That's why we know what you and your company need right now: agile, convenient, fast, comprehensive software that complies with the tax requirements requirements of your business. And it just so happens that our system offers you exactly that. Any further questions before contacting us and take the final step towards digitizing your company?
