E-invoicing? You might have received a request from your customer to start sending e-invoices. Or you might have read from newsletters how the EU and local governments are starting to enforce e-invoicing. And you might be wondering why they are doing it.
As Zervant also introduces this new possibility for sending e-invoices as part of our billing software, we want to give you a short overview of what it actually is about.
Benefits for the receiving party
Organisations receiving e-invoices have been motivated to do so because of the huge cost efficiency aspect. If you look at the process steps below and look at the cost savings potential per processed invoice, you get an understanding of why e-invoicing has become so popular. The main driver for the whole process is the fact that with e-invoicing you can outsource many manual tasks to a computer.
Why should I as a sender care?
Well, there are of course manual steps that you can also replace with automation, if you think about the steps that are related to sending invoices as paper (see picture below). However, the main benefit for you would most probably be that you would receive your money faster. If your customer receives your invoice quicker and directly to a system, it most probably will be processed and paid sooner.
Different sending options
With e-invoicing, the most popular e-invoicing method today is to use a 3rd party service provider, such as Zervant, to send your invoices in an electronic format to your customers. Most service providers use a so-called many-to-many operating model, which means that based on certain routing rules an e-invoice service provider is able to send your invoices to the recipient independent of invoice data formats or service providers your customers are using. In summary, there is no need to know any technical details as long as you know the address your customer is using for e-invoicing.
Subscribe to one of our premium plans, if you want to start sending e-invoices to your customers. And do remember that although this is a paid feature you can, of course, still continue sending invoices via email to your customers for free.