Top 5 eInvoicing Benefits – Going Paperless

Electronic invoicing, or eInvoicing, represents one of many shifts in how businesses process invoices in 2024. Moving away from traditional paper-based or PDF methods, eInvoicing benefits all parties involved, making invoicing faster, more accurate, and easier to manage.

 

eInvoicing enables the quick digital exchange of invoice information between suppliers and buyers across different financial systems via a common network like Peppol. In its legacy form, it has been available for some time now as EDI (electronic data interchange), but historically, it would typically cost thousands of dollars to set up between trading partners and take extended periods of time to integrate with an organisations’ existing computer infrastructure. eInvoicing has created a standard for buyers and sellers to access, removing the need to set up bespoke direct connectivity between buyers and sellers or the use of custom EDI intermediaries. With standardisation gradually becoming the norm, invoicing with Peppol, for example, is more cost-effective and viable in 2024.

 

Read on to learn the top advantages of eInvoicing and how it has been introduced to Xtracta.

 

How eInvoicing Works with Xtracta

eInvoicing transfers invoice information through a common secure network like Peppol. Even if the buyer and supplier use different financial systems, they can exchange invoices accurately and securely. With Xtracta, this process integrates seamlessly into a business’s existing workflow for invoice processing in nearly the exact same way as they use for handling digitized paper invoices or PDF invoices.

 

eInvoicing benefits from Xtracta’s advanced data extraction software integration, which consolidates the information received and automatically makes modifications around product part numbers or taxation as needed. Xtracta carries out complex business logic, data matching, and validations on an inbound eInvoice, further optimising the invoicing process.

 

As for inbound eInvoices, for outbound eInvoices, Xtracta is an accredited access point on the Peppol eInvoicing network. Users can send eInvoices through Xtracta and take advantage of the robust support and access to data formatting and validation libraries, which makes eInvoicing even smoother and more accurate. Xtracta can also convert PDF invoices and send them via the Peppol network. Peppol requires the recipient’s business number to be printed on the invoice or digitally recorded by Xtracta to match key details like the address or ‘Billed To’ name.”

 

 

What are the Benefits of eInvoicing

 

1. Better Financial Visibility and Reporting

The structured nature of eInvoicing enables businesses to capture and store more detailed invoice data using platforms such as Xtracta. Often, businesses may not capture all line-item details using the document data extraction service to reduce document model training times. With eInvoicing, the marginal cost and time of importing all data are negligible, and as such, there is little reason for organisations to ignore it. When integrated into an organisation’s broader workflow, this information is easily accessible and can be used by in-house finance and other departments to make strategic decisions.

 

With greater visibility over accounts payable, another eInvoicing benefit is how it supports financial analysis, forecasting, planning, and budgeting as part of a business’s financial management.

 

2. Improved Accuracy

Manual data entry is prone to errors such as incorrect calculations or mismatches in invoice details. eInvoicing, with the help of Xtracta, reduces these risks by quickly identifying and flagging discrepancies. Preventing invoicing errors is a key benefit of eInvoicing, as these mistakes can lead to tension or disputes between businesses.

 

3. Enhanced Security

eInvoicing is a more secure method of exchanging invoice data than traditional methods. Paper invoices can be lost, while invoices sent over email can be intercepted or spoofed. eInvoicing allows both buyers and sellers to avoid phishing scams or fraud using a secure network. eInvoices are transmitted through a verified and trusted channel, ensuring the correct information reaches the intended recipient​. For businesses handling sensitive financial data or in industries with heightened security demands, eInvoicing provides an extra layer of security.

 

4. Faster Payment Cycles

A number of governments have announced more speedy payment for invoices received from their suppliers as eInvoices rather than by paper or PDF. eInvoices typically require less validation than other invoice types also reducing their overall time spent in processing before being able to go through the approval process.

 

Begin eInvoicing with Peppol using Xtracta

The benefits of eInvoices extend beyond cost and time-savings. By optimising the invoicing process and integrating it with other workflows using Xtracta, your business can operate more strategically. As more businesses and government organisations adopt this technology, its role in streamlining trade and improving accounting processes could grow.

 

Providers like Xtracta have streamlined the implementation of Peppol-based eInvoicing, allowing businesses to switch from traditional invoicing methods to digital solutions without extensive system changes or overhauls. Talk to an Xtracta expert to see how your business could implement eInvoicing using the Peppol network to stay competitive in an increasingly digital world.