Electronic invoices for SMEs: 5 main advantages
Posted: Thu Dec 26, 2024 4:22 am
If, until now, SMEs that supply public entities could still issue invoices in a traditional way, from now on, their IT systems must be prepared to respond to this new era of electronic invoicing in Public Administration.
Decree-Law No. 28/2019 legislated the definitive end of paper invoices, a measure that, in addition to driving enormous environmental gains, simultaneously represents a reduction in bureaucracy, an increase in the speed and agility in sending invoices and an increase in the fight against tax evasion.
Electronic invoices automate and optimize invoicing processes between public entities and their suppliers, increase productivity and bring greater efficiency and transparency to the entire invoicing process.
What are electronic invoices?
If you haven't tried sending your invoices electronically yet, the process is jamaica whatsapp number database and the only difference between electronic invoices and conventional invoices is the dematerialization. In other words, instead of sending paper invoices, you send invoices in digital format – which can be sent to the customer via email.
The legal and fiscal validity is the same, as long as it contains the mandatory information and complies with the legal requirements to which all invoices are subject.
But be careful! For an electronic invoice to be valid, it is not enough for the invoice to be converted into a PDF file – although PDF invoices will still be considered electronic invoices until September 30th.
In addition to including a qualified digital signature , the document must follow its own structure, standardised and defined according to a European model, taking into account that the transaction data is communicated electronically to the tax authorities.
What are the advantages of electronic invoices for companies?
1.Greater agility in the shipping process
By eliminating time-consuming manual tasks associated with processing and sending invoices, productivity and administrative efficiency are clearly increased. Furthermore, with electronic invoices, you no longer need to spend time printing, signing and even going to the post office to send an invoice. The sending process is, in fact, faster and simpler.
2.Minimizing operating and transaction costs
Reducing invoice sending costs is one of the biggest advantages of implementing electronic invoicing. In addition to achieving significant savings on paper, ink, toner, printing material or mailings, it also ensures the minimization of possible processing errors – which can lead to additional costs.
3.Guarantee of greater reliability and transparency in billing processes
By automating your invoicing processes, you reduce the occurrence of errors and eliminate the possibility of lost invoices. As it is a digital document signed electronically, the electronic invoice is valid for tax purposes and guarantees total reliability, privacy and information security.
4.Streamlining customer relations
By sending invoices electronically, both the sender and the recipient are guaranteed to receive the invoice correctly. In addition, the invoicing process becomes faster and more efficient, which increases the likelihood of receiving payments on time. In addition, access to documents is instantaneous and you can customize the integrations of the electronic invoicing system with the billing system, in order to guarantee full automation of the process, gaining efficiency and accuracy of information.
5.Greater accessibility with the digital archive
At a time when teleworking is beginning to gain ground in the business world, the digitalization of documents is essential to ensure access to information anywhere. Electronic invoicing solutions also ensure the digital archiving of invoices for the legally required period, promoting productivity, efficiency and ease of access to information.
What are the deadlines for implementing electronic invoicing in public contracts?
Through Decree-Law No. 14-A/2020 , the State has set new dates for companies to start using electronic invoicing in public contracts. For large companies, this requirement has already started in January, for SMEs it starts now and for micro-enterprises it will come into force next year. Check out the dates below:
On January 1, 2021 , the requirement for electronic invoicing in public contracts for large companies came into force (companies that meet at least one of these three conditions: more than 250 employees, more than €50M in turnover or €43M in balance).
July 1, 2021 , the mandatory electronic invoicing for Small and Medium-sized Companies supplying the State comes into force.
January 1, 2022 , micro-enterprises supplying public entities are required to issue electronic invoices using electronic invoicing software.
Electronic invoice available in PRIMAVERA solutions
If you are an SME that supplies the State and manages your business with PRIMAVERA solutions, we have the tools you need to comply with the requirement for electronic invoicing in public contracts.
For over ten years, PRIMAVERA has been providing electronic invoicing solutions , tested and proven by numerous leading organizations. Discover our electronic invoicing solutions and ensure full compliance with legislation, while increasing the administrative efficiency of your company.
Decree-Law No. 28/2019 legislated the definitive end of paper invoices, a measure that, in addition to driving enormous environmental gains, simultaneously represents a reduction in bureaucracy, an increase in the speed and agility in sending invoices and an increase in the fight against tax evasion.
Electronic invoices automate and optimize invoicing processes between public entities and their suppliers, increase productivity and bring greater efficiency and transparency to the entire invoicing process.
What are electronic invoices?
If you haven't tried sending your invoices electronically yet, the process is jamaica whatsapp number database and the only difference between electronic invoices and conventional invoices is the dematerialization. In other words, instead of sending paper invoices, you send invoices in digital format – which can be sent to the customer via email.
The legal and fiscal validity is the same, as long as it contains the mandatory information and complies with the legal requirements to which all invoices are subject.
But be careful! For an electronic invoice to be valid, it is not enough for the invoice to be converted into a PDF file – although PDF invoices will still be considered electronic invoices until September 30th.
In addition to including a qualified digital signature , the document must follow its own structure, standardised and defined according to a European model, taking into account that the transaction data is communicated electronically to the tax authorities.
What are the advantages of electronic invoices for companies?
1.Greater agility in the shipping process
By eliminating time-consuming manual tasks associated with processing and sending invoices, productivity and administrative efficiency are clearly increased. Furthermore, with electronic invoices, you no longer need to spend time printing, signing and even going to the post office to send an invoice. The sending process is, in fact, faster and simpler.
2.Minimizing operating and transaction costs
Reducing invoice sending costs is one of the biggest advantages of implementing electronic invoicing. In addition to achieving significant savings on paper, ink, toner, printing material or mailings, it also ensures the minimization of possible processing errors – which can lead to additional costs.
3.Guarantee of greater reliability and transparency in billing processes
By automating your invoicing processes, you reduce the occurrence of errors and eliminate the possibility of lost invoices. As it is a digital document signed electronically, the electronic invoice is valid for tax purposes and guarantees total reliability, privacy and information security.
4.Streamlining customer relations
By sending invoices electronically, both the sender and the recipient are guaranteed to receive the invoice correctly. In addition, the invoicing process becomes faster and more efficient, which increases the likelihood of receiving payments on time. In addition, access to documents is instantaneous and you can customize the integrations of the electronic invoicing system with the billing system, in order to guarantee full automation of the process, gaining efficiency and accuracy of information.
5.Greater accessibility with the digital archive
At a time when teleworking is beginning to gain ground in the business world, the digitalization of documents is essential to ensure access to information anywhere. Electronic invoicing solutions also ensure the digital archiving of invoices for the legally required period, promoting productivity, efficiency and ease of access to information.
What are the deadlines for implementing electronic invoicing in public contracts?
Through Decree-Law No. 14-A/2020 , the State has set new dates for companies to start using electronic invoicing in public contracts. For large companies, this requirement has already started in January, for SMEs it starts now and for micro-enterprises it will come into force next year. Check out the dates below:
On January 1, 2021 , the requirement for electronic invoicing in public contracts for large companies came into force (companies that meet at least one of these three conditions: more than 250 employees, more than €50M in turnover or €43M in balance).
July 1, 2021 , the mandatory electronic invoicing for Small and Medium-sized Companies supplying the State comes into force.
January 1, 2022 , micro-enterprises supplying public entities are required to issue electronic invoices using electronic invoicing software.
Electronic invoice available in PRIMAVERA solutions
If you are an SME that supplies the State and manages your business with PRIMAVERA solutions, we have the tools you need to comply with the requirement for electronic invoicing in public contracts.
For over ten years, PRIMAVERA has been providing electronic invoicing solutions , tested and proven by numerous leading organizations. Discover our electronic invoicing solutions and ensure full compliance with legislation, while increasing the administrative efficiency of your company.