Did you know that Corona crisis further exposes problem of outdated billing systems and 95% of invoices still pass the scanner? Despite the enormous advantages, digital invoicing is not yet a standard matter for companies today. Especially in this time of crisis, companies that are still too paper-based are lagging behind administratively.  In our previous article we explained to you how you can switch to a more digital accountancy. 

Now we are calling upon all companies to urgently implement digital invoicing. Electronic invoicing should support companies in faster, more efficient and safer processing of invoices. Digital invoices are not yet established on the shop floor. Today, only a few percent of invoices are fully processed digitally. However, digital invoicing offers many advantages. The corona crisis once again clearly exposes them. As we have pointed out in our past in our past (insert a link to the article on digital invoicing), it is important to distinguish between levels of digitization.

The first level of digitization, when invoices are issued in electronic format - for example in PDF, is certainly a good start and speed of document exchange, but it is only a small improvement for invoice processing, when the processing process is essentially relieved by the need to scan a paper invoice, otherwise it remains the same.

The real impetus for the full use of digital invoice processing will be the second level of digitization, when invoices will not only have a digital form but also their content (such as value, quantity, subject of invoicing and important dates) will be digitally stored in the issued invoice. The existence of a generally applicable standard is a prerequisite. Invoices issued in this way can then be read and processed directly on the part of the recipient, without the need to "translate" them into digital language. Only this level of digitization will bring the expected jump acceleration and streamlining of invoice processing.

Companies that work with paper documents even in these times gradually. Important documents remain at the office and those who work from home do not always have access to scanning and fax infrastructure. Moreover, many companies keep paper documents in quarantine for a certain period of time before processing them. On the other hand, those who send and process invoices digitally are now more than ever saving time and money. On top of that, it is also much safer and it also has a positive impact on cash flow and solvency.

More tips for digital invoicing? Read them here.

VGD is for digital invoicing

Our company have been urging companies to use digital invoicing for quite some time now.

Please note that in order to move to the second level of digitization, real digital processing, it is necessary to have a legislative and technical environment in place. The success lies in standardizing the exchange of billing information. At the EU level, standards for digital invoicing have been introduced in recent years and have even been transposed into Slovak legislation, as we have described in our article. The Slovak government must now tighten these legislative bases into the practical implementation of e-government for the purposes for which the standards were developed. The government then expects and hopes that not only companies cooperating with the state but also the entire business sector will gradually adopt these standards and introduce truly digital invoicing.

However, there is no reason to wait for government action, as standards and legislation are already available, we would like to see the business sector take the initiative and seize the opportunity to introduce full digitization of invoice processing as soon as possible.

Less paperwork, more carefree

Digital invoicing saves companies a lot of headaches. The invoice automatically reaches the accountancy offices. Unnecessary steps of reading and "translating" invoices into digital language will be eliminated. This system enable a smoother and easier payment, and also ensure that the financial part of companies is immediately in order. Digital systems make it easy for companies to book their invoices and ensure that they reach the correct authority. Thanks to digital archiving, companies can also retrieve their documents faster.

An additional advantage: because, thanks to digital invoicing, consultancy firms have to spend less time on executive work, they can focus more on analysing the figures and on possible opportunities where their added value as advisers lies. Especially in times of a tight labour market, this is a real added value.

Our firm are calling on companies and also suppliers to make e-invoices the new standard and to join an electronic invoicing provider. These can be private, but there are also open standards such as PEPPOL.

PEPPOL is an initiative of the European Commission and serves as a platform for exchanging digital documents, including invoices. The platform aims to facilitate the processing of data by offering companies a standard format that is accessible to everyone.