Electronic invoicing (e-invoicing) is fundamentally changing the way businesses handle their invoice communications and financial transactions. However, as with any new technology, there are myths and misconceptions. In this blog, we will address these myths and evaluate them from our professional perspective to show the true potential and benefits of e-invoicing. In the end, you'll see why e-invoicing is not only a modern necessity, but also a powerful tool for businesses of all sizes.
What is e-invoicing?
Before we get to the myths, let's take a moment to understand what e-invoicing actually is. And to get straight to the point: PDF invoices sent by email are not one of them! On the contrary, e-invoicing refers to the entire process of creating, sending, and receiving invoices in electronic form instead of traditional paper documents.
In fact, the current draft law on mandatory e-invoicing in Germany (from 2025 for B2B transactions) explicitly does not accept PDF invoices as electronic invoices. You need to understand this to see what changes are coming! Only digital invoices according to EN 16931 (e.g. XRechnung and ZUGFeRD) will be considered as electronic invoices!
E-invoicing therefore involves the digital exchange of invoice data, often using secure platforms and standardised formats to reduce manual intervention and potential errors. It also means shifting the focus to information and data. After all, the value of an invoice is not in the medium, but in what it says: why you want to be paid by your customer, and why your customer needs to know why they should pay you. This is important in a data-hungry world, where more and more companies are demanding better and more comprehensive data from their suppliers.
Unlike PDF invoices, true e-invoices can efficiently meet these increasing demands for transparency and accuracy. This is also the reason why governments are introducing so-called B2B reporting platforms and obliging invoice issuers and recipients to report invoices there. Not least to increase tax transparency!
The reality of e-invoicing: myths and truth
Now that we have clarified what e-invoicing is, let's take a look at the most common myths and let you know what we think with our fact check!
Myth 1: E-invoicing is too complicated
Fact: Modern e-invoicing systems are designed to be user-friendly. Businesses of all sizes can easily use these platforms, making e-invoicing accessible to everyone. It's time to go digital, and it's easier than you think. Modern cloud solutions are particularly suited to this. Our Banqup service, for example, is specifically designed to meet the needs of SMEs and offers additional services such as payments integration and flexible invoice finance.
Myth 2: E-invoicing is expensive
Fact: While there are costs associated with implementation, e-invoicing can significantly reduce paper, printing and postage costs, resulting in significant savings in the long run. In addition, only a fully electronic invoice can offer highly attractive additional solutions. For example, the flexible financing of invoices via a selective invoice financing offer for SMEs!
Myth 3: E-invoicing is not secure
Fact: E-invoicing platforms prioritise security and use advanced encryption and protection measures to effectively safeguard your data. They are much more secure than paper invoices, which have to be painstakingly re-scanned by the recipient.
Myth 4: E-invoicing is only for tech-savvy companies
Fact: Most e-invoicing systems are easy to use and do not require advanced technical knowledge. They are specifically designed to make invoicing easier for everyone. For example, the invoicing process can be done from anywhere. No one has to travel to the office to check paper invoices. Work can also continue seamlessly and securely from the home office.
Myth 5: E-invoicing is time-consuming
Fact: E-invoicing automates processes, reduces manual work, saves time and minimises errors. The percentage of automated invoice verification can be massively increased. Process costs are the real savings potential.
Myth 6: E-invoicing requires high IT investments
Fact: Cloud-based e-invoicing solutions minimise the need for extensive IT infrastructure and are cost-effective for businesses. Economies of scale can be passed from the e-invoicing provider to the user.
Myth 7: E-invoicing is all about compliance
Fact: Compliance is important, but e-invoicing is also much more environmentally friendly than paper and PDF invoices and offers additional efficiency and cost benefits. See above!
Myth 8: E-invoicing is only for national transactions
Fact: E-invoicing is not limited to national transactions and can simplify international invoicing to ensure compliance in different countries. Especially internationally, there are many requirements that can only be met by a specialised provider. One example is Luxembourg's B2G e-invoicing obligation, which explicitly applies to international (including German) companies.
Myth 9: E-invoicing is less reliable
Fact: Modern e-invoicing systems are extremely reliable and offer transparency and traceability throughout the entire invoicing process. In particular, archiving and subsequent traceability is significantly better than with the paper-based process.
Myth 10: E-invoicing reduces human interaction
Fact: E-invoicing improves communication between companies and simplifies interaction. More time for the essentials!
Benefits of e-invoicing for businesses:
Why should businesses consider e-invoicing? Let's take a look at some of the many benefits of e-invoicing that go far beyond the myths:
- Cost savings: E-invoicing significantly reduces paper, printing and postage costs and offers long-term financial benefits. In addition, fully digital processes are the real drivers of cost savings.
- Efficiency: Automated processes reduce manual activity, minimise errors and optimise the invoice workflow.
- Low environmental impact: Moving to paperless invoicing reduces a company's environmental footprint and helps achieve sustainability goals. Using valuable paper for invoices is simply no longer fit for purpose.
- Improved security: E-invoicing platforms are designed with security in mind, ensuring the secure transmission and storage of sensitive financial data.
- Compliance: E-invoicing helps businesses comply with tax regulations and minimises the risk of penalties.
- Business growth: More efficient invoicing processes save time and resources, allowing companies to focus on growth and innovation.
Conclusion
In summary, e-invoicing is not only the future, but also the present of financial transactions. Demystifying these myths is crucial for businesses to realise the full potential of e-invoicing to save money, increase efficiency and contribute to a sustainable future. It's time to embrace digital transformation and reap the many benefits of e-invoicing.
Take the time to learn about the many benefits of e-invoicing, and check out our other blog posts for even more information. We look forward to telling you more about our solutions and how they can benefit your company.
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