Why eInvoicing is important for your business?

Basics

eInvoicing is an electronic exchange of invoices between a vendor and a customer. Sent and received via a structured electronic format allows an invoice to be processed automatically without the need for traditional paperwork.

This method of invoicing today is a common practice for businesses around the world and has recorded steady growth over the past 30 years.

Forget about paperwork because e-Invoicing is a process that is fully digital and compliant with electronic formats for eInvoices including (but not limited to): XML, EDIFACT, CSV.

Why is eInvoicing becoming more popular?

eInvoicing, like traditional invoicing, is a key part of any customer-vendor relationship. eInvoicing is a modern way for companies to automate processes and implement efficiency-enhancing actions that boost business in the future.

While traditional invoicing processes are largely paper-based, manual, time-consuming and prone to human error, eInvoicing simplifies the procedure and significantly saves time. This streamlining of the process is valuable for businesses, as it provides the possibility of savings. For example, according to the Institute of Finance and Management (IOFM), the cost of processing invoices can vary between $1 and $21.

eInvoicing also allows businesses to have full visibility, and some leading eInvoicing providers can track when an invoice has been sent, received, opened, reviewed, and even paid. When choosing a provider, you should not underestimate the importance of this feature, as it allows businesses to have a total overview of the entire process.

In addition, companies receive payments faster because the process is automatic and instantaneous, without the need for physical printing and mail. Employees experience significantly fewer mistakes, which leaves room to enjoy the innovative way of working without the need to enter data and harmonize financial documents – everything is done on one path, instead of individual steps.

Some eInvoicing providers offer automatic payment reminders that again help businesses get paid effortlessly. When it comes to security, encrypted file transfers and secure networks help make the eInvoicing process more secure compared to manual payment methods.

How does eInvoicing work?

In order for eInvoicing to work, three things are needed:

Address
Various identifications are required such as name, address, TIN, as well as the identification number of the issuer or recipient of the electronic facture. Through the website of the Ministry of Finance of the Republic of Serbia you can check the register of recorded VAT payers.

Format
XML is a format in which eInvoices are automatically created and is the only standard that applies to sending and receiving eInvoices in the government portal Sistem E-faktura.

Infrastructure
Both the sender and the recipient need a compatible system in order for eInvoice vendors to submit electronic documents. This is as simple as having an email inbox for documents to be exchanged.

Legal provisions

There is a growing number of legal provisions for eInvoicing, especially in Europe. More visibility of VAT is needed to combat fraud, so governments/tax authorities are introducing eInvoicing regulations.

Different governments have different provisions, e.g. which companies must adhere to, what formats and models of eInvoicing must use, etc. To keep up with this, Unifiedpost has developed a worldwide tax liability map to inform you about which countries currently have legal provisions on eInvoicing.

Electronic registration of VAT calculation in the state System of electronic invoices is carried out within the deadline for submitting a tax return, in accordance with the law governing value added tax.

Want to know more?

Further explore the options that await you and learn more about automating the invoicing process using Unifiedpost's invoicing solutions. Unifiedpost operates a leading network for e-Invoices, e-Payments, e-Orders and e-Financing in Europe. By connecting you with your stakeholders, we automate your buying and selling transactions and unlock liquidity for you.

More than one million companies are already exchanging their documents through Unifiedpost software solutions.
Tax compliance and eInvoicing regulations are changing regularly around the world. We comply with tax regulations in over 60 countries, following current and global developments.

The main advantage for your business is that only one technical connection to our network allows you to communicate with all other participants. Once you've done that, your IT infrastructure doesn't have to change. In times of limited internal IT resources, this is a real plus.

Fitekin - a solution for receipt, approval process, search, posting and archiving of purchase invoices

 Unibill - a solution for automatically sending invoices and documents through multiple digital channels

 Unitout - solution for managing outgoing invoices

‍

Unifiedpost software solutions - make your business easier, speed up processes, make them safer.

‍

Contact us at the office.rs@unifiedpost.com and find out more about how we can change your business.

‍

‍