The dynamic business world is constantly changing, and there are certain trends prevailing in it. Electronic invoicing has become more and more popular in recent years and is increasingly being adapted to the needs of businesses and governments.
E-invoices are becoming an essential tool for companies that are concerned with digitalisation and automation of processes that influence how companies manage financial operations, streamline processes and increase efficiency. These processes are not easy to implement or adapt, because third parties are always involved in the exchange of documents - both business partners and controlling institutions, whose behavior is difficult to influence. Simple practical questions arise from this, how to use e-invoices, what should be the format or through which channel to exchange them. We share insights on how to meet these challenges and take advantage of emerging opportunities with e-invoices.
Automation and integrations
E-invoices can already be fully utilised in automated processes that are integrated with accounting systems. With the help of artificial intelligence and machine learning, e-invoice management tools will be able to import the necessary data, check their correctness and automatically add accounting information. The result is less manual data entry and errors, and faster and smoother billing processes.
For example, your company receives a bill every month for office rent, utilities, etc. When the supplier sends the e-invoice, you will already have all the original invoice data (serial no., dates, amounts, etc.). After receiving this data and using automation tools, you can achieve such a result that this invoice will be automatically uploaded with accounting information ( VAT codes, cost centers) and imported into the accounting system. No manual work, no mistakes.
Global standardisation
Different countries and regions have different standards for sending and receiving e-invoices, which can complicate international business operations. However, sending e-invoices between foreign trade partners will become easier, as regions such as the EU are already trying to unify the rules for exchanging invoices in international trade. This is especially relevant in the context of the newly adopted directive, which from 2028 will require the exchange of e-invoices through the Peppol network in trade between EU countries. This standardisation partly answers the question raised before, in which format and channel to exchange e-invoices.
Real-time financial insights and analysis
E-invoices enable businesses to receive and analyze data much faster in order to make more informed business decisions, optimise cash flows and identify areas that should be given more attention. Business leaders want to have the most up-to-date information to help them adapt faster to the ever-changing environment. Have you noticed that the further you go, the sooner companies try to “close” the month and get results?
Sustainability
Companies pay more and more attention to sustainability, and digitalisation of processes opens up opportunities not only to perform more efficient activities, but also to position the company as more environmentally friendly. Reducing the handling and sending of paper documents, greater use of e-invoices significantly contributes to a smaller CO2 footprint.
Imagine how much paper is stored in an average Lithuanian company in order to comply with the old rules of document archiving, even though these documents could have been discarded a long time ago. For example, invoices must be archived in the company for 10 years, but a few years ago amendments were adopted that these documents can be stored in the digital space.
Mobility
Advances in mobile technology are further increasing the use and penetration of e-invoices. A mobile app is already enough to create a payment order or issue an invoice, which can automatically end up in the system used by the recipient of the bill. Meanwhile, now the invoice archive is always at hand, on the mobile phone, and a few years ago we went to the accounting office to ask them to find some previous purchase in the records.
Regulatory compliance
Government institutions are creating new rules and standards, aiming to make the use of e-invoices an advantage in certain areas - public procurement, international trade. This will help increase tax collection, identify VAT evasion schemes, so governments will be more inclined to promote the use of e-invoices and introduce new reporting rules.
E-invoicing will bring significant benefits to businesses of all sizes in the future. From complex automation processes using artificial intelligence to a fully integrated process across all systems used.
Imagine that the seller will issue and send an invoice with a few clicks of a button, which will automatically end up in the systems used by the recipient with completed accounting information. The accountant will only have to supervise this process and intervene where artificial intelligence is unable to perform the task. No data entry, no wrong numbers, etc. The invoices will be permanently accessible to the responsible persons when needed.
E-invoicing is not just a matter of convenience, it is a strategic step towards efficiency, transparency and sustainability in the business world.
