WHAT IS E-INVOICING?
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Electronic invoicing, also known as e-invoicing, is the process where invoices are sent and received digitally in a standardized format, such as UBL. It replaces traditional paper invoices and email PDFs with fully automated workflows. Thanks to e-invoicing, companies save time, reduce errors, and easily comply with legal requirements.
E-invoicing originated in the late nineties as an innovative way to automate administrative processes between large companies. The introduction of standards such as UBL (Universal Business Language) and the implementation of European regulations making e-invoicing mandatory for government contracts significantly accelerated adoption. Today, e-invoicing has become the standard in numerous sectors and countries. Companies choose it for its advantages in speed, accuracy, and sustainability, making it an essential component of modern business operations.
E-invoicing is a standardized process where invoices are sent and received digitally. Unlike paper invoices or PDF files, e-invoices are processed in a specific format, such as UBL (Universal Business Language). This enables automatic processing by software without the need for manual input.
The process begins with creating an electronic invoice in your accounting software. This invoice is sent directly to the recipient via a secure network, such as the Peppol network. The system automatically checks for errors and ensures that data is displayed correctly. The recipient can process the invoice directly in their own system, ensuring quick and error-free handling.
Thanks to this streamlined process, companies save time, reduce errors, and easily comply with legal requirements, such as the obligations around e-invoicing for government contracts. E-invoicing is not only faster and safer but also offers better control and overview of your financial processes.
An e-invoice is actually quite a boring document. It consists of standardized programming language, with all information in fixed locations. The special aspect of an e-invoice is that any software provider can automatically retrieve the invoice information from the e-invoice message. This allows you to automatically view the e-invoice from your software package or invoice portal. This saves you a lot of time and effort normally spent retyping invoice information or correcting and supplementing scanned invoices.
Moreover, e-invoicing offers the possibility to automate processes such as posting.
E-invoicing is much more than just a digital replacement for paper invoices. It’s a modern way of doing business that helps companies work more efficiently, reduce costs, and simultaneously comply with legal obligations. With e-invoicing, administrative processes become simpler, faster, and more accurate because invoices are sent and received directly from accounting software. This virtually eliminates manual entry, which not only saves time but also significantly reduces the risk of errors.
The switch to e-invoicing means that companies directly benefit from improved cash flow. Invoices are processed faster, payments are made on time, and outstanding items are more easily managed. Additionally, e-invoicing contributes to sustainable business operations as the use of paper becomes completely unnecessary. This is not only good for the environment but also strengthens the reputation of companies that take sustainable business practices seriously.
For many organizations, e-invoicing is no longer optional but a strategic necessity. It allows companies to remain compliant with regulations, such as the requirements for e-invoicing for government contracts in the Netherlands and Europe. Moreover, it provides standardization in processes, making it easier for companies to collaborate with partners and customers, regardless of their software or location. By choosing e-invoicing, you take a step toward future-proof business operations.
E-invoicing plays an essential role within different transaction chains used by companies and governments:E-INVOICING IN THE TRANSACTION CHAIN
E-invoicing is fully supported by the Value Added Tax Act, which establishes that electronic invoices have the same legal value as paper invoices. To meet these legal requirements, e-invoices must comply with three important criteria: authenticity of origin, integrity of content, and legibility. This means that the sender must be clearly identifiable, the content must not be altered, and the invoice must be comprehensible to all parties involved. The Tax Authority sees e-invoicing as an efficient way to process invoices safely and without errors. Because e-invoices are standardized and can be processed directly from accounting systems, this minimizes the risk of errors in tax returns and simplifies audits. Moreover, the digital process offers complete traceability, which helps both the Tax Authority and companies gain faster insight into transactions. By choosing e-invoicing, you not only streamline your internal processes but also ensure that you always comply with fiscal requirements. Discover how Peppol and e-invoicing can help your organization with more efficient tax filing.E-invoicing and the Tax Authority
Peppol has taken e-invoicing to a new level by providing a globally standardized network for the secure and efficient exchange of invoices. Instead of complex, separate connections between individual companies, Peppol offers a universal infrastructure through which organizations worldwide can easily communicate. This makes Peppol not only user-friendly but also cost-effective and reliable.E-invoicing and Peppol
With Peppol, e-invoicing is fully automated, from sending to receipt, without companies having to worry about technical compatibility or security issues. The network supports multiple standards, such as UBL, and meets all legal requirements, such as those of the Dutch Tax Authority and European e-invoicing standards. This makes it the solution for companies that want to comply with legal obligations and optimize their administrative processes.
Peppol has not only made e-invoicing simpler but also more accessible for companies of any size. Discover how your organization can benefit from the possibilities the Peppol network offers to collaborate faster, more securely, and more efficiently.
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We not only have extensive experience in advising organizations on operational management challenges, but also possess deep expertise in leading implementation projects and training employees. We are convinced that the main challenge in any digital transition lies in engaging the employees who will ultimately have to work in the new environment and with new digital tools. Training staff helps shift resistance to change into a clear understanding of the added value it can bring to their daily work.