Do you still use invoices in PDF or maybe even on paper? More and more companies are switching to electronic invoicing. There are also plenty of benefits for SMEs. We are happy to explain what e-invoicing is and what benefits you can get from it.
What is e-invoicing?
If your company uses electronic invoicing, it means that you send e-invoices (not PDF) where the required data is always in a fixed place with its coding. This makes it possible to process an e-invoice automatically, making unnecessary manual administration work a thing of the past. Invoices are created and sent automatically. Subsequently, the invoice is automatically processed and made payable to the recipient. More and more companies are using electronic invoicing, and the national government has even only accepted e-invoices since April 2019.
What are UBL and XML?
More and more people are talking about a UBL invoice. Universal Business Language is a standard format for electronic invoices. It is an XML file specially designed for invoices. Thanks to a UBL invoice, it is possible to send all required invoice data from one accounting package to another. For example, the invoice is read directly by our service and maintenance software, without you having to do any manual work. Maker and receiver can also communicate with each other if they work with two different systems.
The benefits of electronic invoicing
Sending electronic invoices has several advantages. We have listed the most important benefits for you:
- Simple and fast processing
Invoices are created automatically and processed faster, without the need for human action.
- More economical
Manual activities disappear, saving you costs on labor costs. The European Commission estimates the annual savings of e-invoicing for companies in the Netherlands at approximately € 8 billion.
- Faster payment of your invoices
If you use electronic invoicing, your e-invoices will be paid in an average of three days. For non-electronic invoices, the standard is 16 days.
- Insight and transparency
Because all your incoming and outgoing invoices are processed automatically, your system is always up-to-date. Besides, you have more insight into your administration because delayed payments are a thing of the past.
- Less error-prone
Thanks to the automatic system, all fields of an invoice are recognized, and duplicate or incorrect invoices are detected more quickly.