What is an electronic invoice or e-invoice?

Invoices that are issued, transmitted, received, processed, and stored electronically using specific formats are called electronic invoices (e-invoices). E-invoices work digitally throughout all stages of a document's life cycle, including issuance and archiving.

By automating business rules and actions, E-invoicing solutions can replace manual processes that increase efficiency, minimize error handling, and ensure compliance with e-invoicing legislation.

Comparison of different types of invoice

Here is a quick overview of the major differences between electronic, print, and PDF invoices.

Print invoice

Most paper invoices are created digitally and then printed. The counterpart is then mailed the invoice by post.

PDF invoice

Email invoices can be sent as PDF, Word, or other image files. This is a step towards a paper-based invoice flow. These are not e invoice, however, as data must be manually entered or captured using OCR. It is economical and affects business cashflow positively.

E-invoice

E-invoices can be issued, sent, received, and processed electronically. E-invoicing allows for a seamless flow between one company's ERP system and another. It offers several features, including:

• Secure
• Delivery and processing in real-time
• Operation without touch
• High-quality data
• Tracking and traceability
• Higher cash flow and lower DSO
• High Return on Investment
• Environment friendly

What is an e-invoice and what are its limitations?

There are many acceptable e-invoice formats. However, not all digital invoices can be accepted. These are two types that don't make it to the top:

PDF invoices are not emailed. Because PDF invoices are not in a structured format, they cannot be processed automatically. Paper invoices are not considered invoices, even if they are converted to digital format.

What are the benefits of e-invoicing?

Where do all those savings come from? When done correctly, e-invoicing can help you reduce costs and increase profit margins. This is not possible with paper-heavy or PDF invoicing. These are just a few of the many benefits of e-invoicing. They can lead to a high ROI, long-term savings, and better business overall.

Operation

Automating time-consuming, error-prone tasks like data entry, matching, and approvals can be achieved with e-invoicing. This will allow you to reallocate your staff to higher-value projects.

Higher business cash flow and lower DSO

In most cases, removing paperwork and manual tasks will reduce the days of sales outstanding.

Secure document and data exchange

E-invoice is the most secure way to send and get e-invoice. You don't have to worry about invoices getting lost in the mail, or being sent to junk email.

Delivery and processing in real-time

You can view the status of document delivery and processing on cloud-based platforms directly from your ERP.

High-quality data

The ability to access and analyze line-level information is one of the benefits of e-invoicing growth through better procurement and financial decisions.

Accurate invoices

Automated invoice validation helps ensure that only the correct transaction information is entered into your ERP system. A lower number of discrepancies means a shorter cycle time and better business relationships.

Tracking and traceability

E-invoice tracks the transaction history and completes the document journey automatically so that you don't need to do it manually.

Environment friendly

E-invoice helps you reduce paper usage and CO2 emissions. This sustainable effort also lowers operational costs, leads to higher profitability, and builds trustworthiness.

Meet legal requirements

When you use the right service provider, e-invoice will ensure that you are up to date with all relevant tax and archiving legislation.

Remote work-ready

E- invoice can be generated and sent from anywhere.