What Is The Importance Of The Digital Invoice?

The digital invoice performs the same legal function as the paper invoice since this type of invoice accurately collects traditional information related to commercial transactions between two or more parties.

It usually justifies the delivery of goods or provision of services to customers or suppliers, through a particular company or an individual. This billing differs by understanding a digital format. Therefore, it is unnecessary to write the data by hand, which is very easy, fast, and essential within administrative management.

The digital invoice allows the storage, management, and exchange of vouchers to be fully digitized, so it does not require printing and can be done through a PC, Smartphone, or tablet.

This billing mode optimizes administrative management. It complies with tax requirements in an automated way, reduces the process, makes shipping faster, and avoids printing since it provides all the necessary information automatically and digitized.

Features of the digital invoice

This technological advance comprises a series of outstanding characteristics such as the following:

  • It helps to increase efficiency. This is due to the manual decrease that avoids the processes of activities that have no more excellent value.
  • Decrease the cost of postal mail and different messaging services.
  • The digital file is safer and faster since it does not need physical space occupation for the disposition of storage files. Therefore, it does not require the use of paper, photocopies, envelopes, faxes, and stamps, among others.
  • Helps in the management of the audit processes.
  • Collaborate with environmental policies and the development of Eco – Invoices.
  • It reduces and automates the shipping and receiving procedures, which brings significant benefits to profitability and speed. In this way, clients will be able to obtain their invoices when carried out.
  • It provides legal certainty in the process of providing the certified electronic signature and, in turn, guarantees any required data.

Formats used in the digital invoice

Within digital invoices, there are no formal requirements concerning the invoice coding process; however, among the most used modalities are the following:

XML mode

It is done when the shipment is made from one computer to another. This mode has different variants that have an affinity with the framework of the United Nations, the most important being the GS1, which is backed by an organization with the same name and the UBL, which is supported by OASIS.

PDF mode

When it comes to a professional, private, or SME recipient who has the interest of only saving invoices electronically, but who nevertheless does not avoid typing in the data since it is a format that does not easily allow data entry by invoices within the destination computer.

Advantages of the digital invoice

The digital invoice generates a large number of advantages, among the most notable are:

  • It provides the opportunity to provide the information, either at the reception and during the shipment.
  • It makes it easier for all types of audit-related procedures.
  • There is less risk of falsification.
  • Decrease costs and increase efficiency in billing processes.
  • As it is an ecological billing process, it allows the saving of stationery expenses.
  • It reduces the amount of time in the processes and gives more security to the documents, as well as its safekeeping.
  • It is much easier to find information.
  • Facilitates tax calculation and financial access to accounts receivable.
  • It allows administrative processes to be much faster and more efficient.
  • Significantly reduces errors that occur during the capture, generation, delivery, and storage processes.
  • Avoid storage spaces for old documents.

When companies use electronic invoices, they make most of their documents digitized in order to efficiently carry a purchase order, which also helps them save in some other areas.

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Ahmed Ismail

I'm a Civil Engineer. I like reading everything related to Business so I decided to launch the "Fast Grow Company" website to help Entrepreneurs in their business journey. Keep updated and follow us.

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