What are e-invoices and how to send out your first e-invoice?

What are e-invoices and how to send out your first e-invoice?

Uudise avaldamiskuupäev - 07. January 2022

07. January 2022

Uudise autor - Anette

Anette

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What’s an e-invoice and how does it differ from PDF-invoices? PDF invoices are created and sent to an e-mail address of your partner or client, and in order for the data to reach the partner’s accounting system, it has to be entered manually. E-invoices are created in the accounting software, a client is selected from the system, and the invoice information moves directly from one system to another in a few seconds, so it doesn’t have to be manually re-entered or sent.

The biggest difference is that the PDF invoice must be re-entered into the accounting system. With e-invoices this is not necessary, as the information automatically moves from one system to another including all the necessary information. One of the main advantages for companies to use e-invoices is that the invoices don’t get stuck in the e-mails of the employees, they do not have to be forwarded and they are not lost. Many companies also point out that since they no longer have to enter invoices manually, they do not make mistakes as a result.

What does an e-invoice look like? The recipient sees the invoice in the same way as if a PDF invoice had been received. An e-invoice is an attachment where the invoice lines are visible. For example, if you have the ability to receive e-invoices, a small e will appear in your accounting system next to where you send out the invoice.

How to start sending our e-invoices? If you use services of an accounting software or accounting firm, it is best to contact them. For many accounting softwares, just ticking one box in the system is enough to start sending e-invoices. Larger e-invoicing operators have connections to all major accounting software and can move invoices between different systems. The Finbite Starter Package is ideal for getting started with e-invoicing – you can send and receive 5 e-invoices per month for free. Finbite packages and solutions are available here.

When switching to e-invoicing, it is important to keep in mind that the biggest financial gain for the company comes from accepting e-invoices. Several studies show that it is on average 3-7 euros cheaper to receive one e-invoice than a PDF or paper invoice. In addition, e-invoicing significantly reduces the risk of falling victim to invoice fraud.

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