What is digital invoicing and how does it work?
Digital invoicing is a modernised flow of payment that greatly reduces the time and costs associated with sending and receiving invoices. Many organisations still manage invoices on paper, but this number is rapidly decreasing thanks to the clear advantages of being able to digitise, automate, and simplify the invoicing process.
When sending an invoice:
- A good digital invoicing tool will create the invoice automatically, pulling in data from the correct sources, and allow you to confirm its accuracy before sending.
- The solution will then send the invoice electronically to the recipient, who will be notified of its arrival.
- If the customer is set up to receive an electronic invoice directly into their financial solution or online bank, it will go there. If not, the invoice will be sent by email or by mail.
- Finally, the customer pays. The more digitally configured the customer, the faster the payment.
A convenient solution
Nearly everything happens automatically and there is no need for manual data entry, printing, or sending paper via post. The solution supports the following formats for sending and receiving: E-invoice B2B, B2G and B2C; Peppol; PDF/email; paper printouts; and invoices that have undergone scanning and/or text recognition.
The solution also works as your invoice inbox. That means that you have all incoming invoices in one place, regardless of whether the invoice is originally electronic, in PDF format, or on paper. If you are already using an ERP system from Visma, the activation of e-invoicing is completely free of charge. We do the activation with you and can have you up and running in 20 minutes.
Time savings, cost reduction, and peace of mind
Every time you receive an invoice:
- You save up to €9
- There is no need to scan documents
- You receive automatic suggestions for your bookkeeping
- The details (due date, invoice number, and amount) are always correct
Every time you send an invoice:
- You save up to €5
- You spend zero time and money on printing, packaging and postage
- You know immediately if the invoice does not arrive
- You receive payment faster since invoices often go directly into the recipient's financial solution or online bank
The cloud advantage
E-invoicing is an excellent example of how businesses and societies are adapting to digital solutions to run some of their core activities. Paper invoices are still regularly used in the Nordics, despite their impact on the environment and the fact that the majority of citizens prefer to receive their invoices electronically.
Visma estimates that switching to digital invoicing would produce a potential savings of €19 billion annually in the Nordics alone. During this time of social distancing, this is yet one more strong reason to shift further into the cloud.