So, what exactly is an e-invoice? An e-invoice is a digital document sent electronically by a company to its customer. Unlike a paper invoice, which is typically received in the mailbox or printed at home, e-invoices are usually received in our online banking, email, or any other digital platform of our choice.
It's essential to understand that an e-invoice differs from a standard PDF invoice received via email. Instead, it's a machine-readable document with a specific format and data structure, typically in XML format. This enables software to accurately read, interpret, and process it. Embracing this format offers substantial benefits, including notable savings on human resources and the complete elimination of processing errors.
How do e-invoices work?
There are several ways to create, receive, send, and pay e-invoices. Here are some of the most common:
Online Banking: Most Latvian banks offer their clients the option to utilize e-invoices. Businesses integrated into the system can directly transmit e-invoices to your online banking platform. Simply access your online bank, navigate to the relevant section, and authorize the payment – a straightforward and convenient process.
Email: Similarly, companies can dispatch e-invoices to your email address. You can settle them by following the link provided within the invoice, which will redirect you to the payment portal.
E-Invoice Platforms: Specialized e-invoice platforms (such as our own Numbero) also facilitate the exchange of e-invoices between businesses and their clientele, even if they operate on different systems.
How and where you receive e-invoices depends on both your company and its partners. So, if you're considering transitioning to the e-invoice format, you'll need to involve all interested parties in the transition process.
Advantages of E-Invoices
Now that we've explored how e-invoices work, let's focus on their benefits. It's worth noting that the following advantages apply to both individuals and companies.
Convenience: Relying on e-invoices allows you to avoid endless stacks of documents. Instead, they're conveniently stored in your inbox or online bank. The process of paying e-invoices is also extremely simple and user-friendly.
Speed & efficiency: Sending and receiving e-invoices happens in a matter of seconds, and the process can be fully automated. Automated processing of e-invoices accelerates the process compared to manual entry, freeing up time for other tasks.
Cost Reduction: Research indicates that companies transitioning to e-invoices save significantly on printing, paper, and postage expenses in the long run, leading to improved ROI.
Environmentally Friendly Solution: E-invoices contribute to environmental conservation by reducing paper usage and the environmental footprint of postal mail. It's estimated that a full transition to e-invoices across the EU could save around 12 million trees annually.
Security: E-invoices employ secure encryption methods to safeguard your data. For instance, Numbero encrypts and stores user data on Europe's most secure servers. Additionally, many systems implement extra authentication measures, further enhancing security during information exchange.
Feeling convinced about the advantages of this format and ready for a change? Fantastic! Let's now explore how you can begin using e-invoices.
How to Start Using E-Invoices?
As discussed earlier, transitioning to e-invoices typically involves format changes for all parties. Specific steps for making this transition include:
Get in touch with your service providers: Inform them that you wish to receive e-invoices going forward and find out the type of e-invoices and the platform that will be used for their exchange (online banking, email, specialized platforms).
Sign up on online banking or another platform: If necessary, register on the relevant e-invoice receiving platform.
Make your first payments: Review the received e-invoice (visually it shouldn't differ too much from its paper counterparts) and proceed with the first payments.
Numbero offers an excellent platform for your initial venture into e-invoicing. With a range of automated features and an intuitive interface, Numbero caters to users comfortable with digital tools while adhering to global standards.
For inquiries or further assistance, don't hesitate to reach out to the Numbero team at any time.
In Conclusion
The e-invoice represents a contemporary, efficient, and environmentally conscious payment solution. If you haven't already made the transition, we strongly encourage you to do so in the near future. This recommendation is particularly important given that starting in 2025, the use of e-invoices between businesses will become mandatory nationwide in Latvia! The transition will not only benefit you but will also contribute to the broader societal good.