What is electronic invoicing and what are the advantages for companies?

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2020 was marked by the beginning of a digital transition that aims to mark the field of invoicing. In 2021 it was proven that this is indeed the path to digitalization. 2022 is a year that will be marked by the continuation of a previously initiated path towards the implementation of electronic invoicing.

Electronic invoicing has arrived to impact companies by simplifying and dematerializing processes that were once too bureaucratic – issuing, signing, organizing and sending paper invoices.

Now, the advantages are undeniable: efficiency is increasing and the costs associated with invoicing are significantly reduced. However, this optimization of companies' financial management driven by electronic invoicing brings many more advantages to businesses.

What is electronic invoicing?
Often interpreted as a simple PDF invoice, electronic invoicing is much more israel whatsapp number database just scanning a document. It is essential that it meets a set of requirements.

It is a commercial document similar to a conventional paper invoice, whose main advantage is that it reaches the consumer instantly in electronic format.

Its authenticity is guaranteed by being issued by certified software, usually in PDF or XML format, and by including a Qualified Digital Signature . This ensures the same validity as a paper document and allows for faster exchange of information.

Qualified digital signature or qualified electronic seal: implementation deadlines
The Government has postponed the deadline for accepting PDF invoices for the fifth time. Companies can now use paper invoices (PDF) for another 6 months, after the Government postponed from June 30 to December 31 the date to stop equating them to electronic invoices, according to Order No. 49/2022-XXII.

Therefore, until December 31, 2022, while this new rule does not come into force, PDF invoices are still considered electronic invoices.

However, this obligation does not imply any change with regard to legislation regarding electronic invoicing in the public contracts code and its respective deadlines.

The mandatory implementation of electronic invoicing in public contracts
This mandatory implementation of electronic invoicing in public contracts has been ongoing since 2020. However, in response to the current pandemic context, the implementation dates have been postponed again. The final phase is now planned for 2022.

Large companies supplying the State have already implemented electronic invoicing since the beginning of 2021. Micro, small and medium-sized companies have seen the dates extended, in accordance with Decree -Law No. 104/2021 , which stipulated the following deadline for implementing electronic invoicing:

1 July 2022 – for micro, small and medium-sized enterprises, as well as for public entities as co-contracting entities.

After this date, all State suppliers will have to use an electronic invoicing system to send their invoices to public bodies.
The advantages of electronic invoicing for companies
After taking the first steps in implementing electronic invoicing in State supplier companies, the digitalization of organizations and the dematerialization of invoicing processes began.

It began with mandatory implementation within the scope of public contracts, but electronic invoicing emerges as a strategy and an opportunity for companies to evolve. How? By increasing the agility of processes, reducing costs and increasing efficiency.

The advantages are clear:

Greater agility in the shipping process
By eliminating time-consuming, repetitive and error-prone manual tasks associated with processing and sending invoices, productivity and administrative efficiency are clearly increased. At the same time, with electronic invoicing you no longer need to spend time printing, signing and even going to the post office to send an invoice. The sending process becomes faster, simpler and more agile.

Minimizing operating and transaction costs
In addition to achieving significant savings on paper, ink, toner, printing material or mailings, electronic invoicing also ensures the minimization of possible processing errors that can lead to additional costs.

Greater reliability and transparency in billing processes
As it is a digital document signed electronically, the electronic invoice is valid for tax purposes and guarantees total reliability, privacy and information security. Furthermore, by automating the invoicing processes, you are reducing the occurrence of errors and eliminating the possibility of lost invoices.

Streamlining customer relations
By sending invoices electronically, both the sender and the recipient are guaranteed to receive the invoice correctly. In addition, the invoicing process becomes faster and more efficient, which increases the likelihood of receiving payments on time.

Greater accessibility with the digital archive
The digitalization of documents is essential today to ensure access to information anywhere. Electronic invoicing solutions also guarantee the digital archiving of invoices for the legally required period, promoting productivity, efficiency and ease of access to information.

Ensure strict implementation of electronic invoicing
The time has come to dedicate time and resources to tasks such as sending and receiving invoices and other business documents. This investment is no longer justified.

Electronic invoicing is the answer to minimizing the administrative workload in your company. With the deadlines for implementing this mandatory requirement for micro-enterprises approaching, the timely adoption of tools that ensure the simplification of invoice and other document processing operations is crucial to achieving maximum business efficiency.