What exactly is e-billing?
Up front: e-billing is not sending an invoice by e-mail in PDF format. Once upon a time, at the time Xolv was founded in 2009, this was still the case. But back then, a significant number of invoices were also sent by post. Meanwhile, 'we' have come a long way. What we mean by an electronic invoice anno 2019 is an structured, digital file where all data are always in a fixed place in the file and have their own meaning. It looks like a normal invoice, but contains additional codes (XML) whose meaning is recognised by software programmes. This allows an e-invoice from one automated system to be easily processed electronically in another system.
What are the main advantages of e-billing?
- One of the biggest plusses is that Manual processing of invoices is a thing of the past Good news, because because the majority of invoices are still processed manually, invoices often remain too long. The result: you have to wait for your money. And that can have far-reaching consequences. The fact that companies' poor payment morale is one of the main reasons for bankruptcies says it all.
- The big advantage of e-billing for you: because your customers can process and pay your invoices faster, you have improved cash flow. But there's more: switch to e-billing, then you also save on manpower, and therefore on costs and time. This is because e-billing allows you to better automate your dunning procedures, from order entry to final payment. Moreover, e-billing is much less prone to errors.
- Finally, when switching to e-invoicing, you can also working for the central government. Since 1 January 2017, companies working for the government have been required to send e-invoices. In April 2019, decentralised authorities such as municipalities, provinces, water boards were added. For the government, efficiency benefits are a key reason for this move. Deloitte research has shown that if the Netherlands switches to e-invoicing, 1.2 billion euros could be saved annually in the long run.
So my business has to go with the flow?
Yes, that is our advice, though. Besides the obligation of electronic invoicing to the government, several standards are being developed and (will be) used by many countries. In the future, electronic invoicing will therefore only increase and improve, simply because it is is more accurate, faster and saves time and money.
How do I switch to e-billing?
Most importantly, you must have an accounting programme that 'speaks' Universal Business Language (UBL). In the Netherlands and many other European countries, this is the standard digital language. This is the case with most accounting programmes. This functionality provides not only an invoice in PDF format (for the digital archive), but also an invoice in UBL format that is automatically created and sent.
What else should I pay attention to with e-billing?
We list some more useful tips so that you will soon be really prepared to switch to e-billing:
- Inform your customers in advance, so they can prepare to receive a digital invoice and not be 'shocked' by it;
- Of course, your customers should be able to receive electronic invoices. Help your customer possibly when converting to electronic invoices. Should a customer not yet be ready for this, be flexible and don't push at all costs;
- Ensure that an electronic invoice meets all conditions. Should it come to a collection case, you must have complied with the conditions or your benefits may be at risk. Electronic invoices must meet same demands satisfy as a paper invoice or a PDF invoice via e-mail.
We wish you every success in the e-billing universe. Do you have any questions or doubts? We are always willing to look with you and do a check!
