On 1 April 2020, a new e-invoicing law will enter into force, requiring e-invoicing for business-to-business transactions. We asked an expert from Admicom Oyj, a domestic provider of end-to-end ERP solutions for the building services industry, how the law will affect the operations of building services contractors.
- In practice, the law means that a business has the right to request an invoice from another business in electronic form and to reject invoices sent in any other form. For example, PDF invoices or image files sent by e-mail are not electronic invoices under the law," says Arttu Ruotsalainen, Sales Director.
Many benefits of e-invoicing
At best, there are many benefits to be gained from moving to e-invoicing, as it is secure, fast and inexpensive compared to traditional invoicing.
- Your e-invoices are highly secure and won't get lost in the post. Today, not only are paper invoices subject to substantial billing surcharges, but they also cost money to print, peel and mail and take time away from other work. Online invoicing also speeds up the money cycle, as the invoice can be delivered to the customer, at best, even immediately from the site.
Online invoicing as part of an overall system improves monitoring and productivity
The move to e-invoicing is positive for businesses, as it reduces manual work and cuts costs for those that already have an electronic financial management system in place. As part of a holistic e-invoicing approach, there are many benefits to be gained from e-invoicing.
- As part of an integrated electronic system, invoices are routed to the right people for review, the actions taken on them are traceable and even old invoices are easy to find. No one has to transfer data manually, so by automating routine entries, costs are also reduced, improving business productivity. In addition, accurate and up-to-date information on the company's financial situation is easily obtained.
A good moment to reflect on your wider practices
If the e-invoicing law makes it a topical issue to reform invoicing practices, it is also worthwhile to familiarise yourself with the possibilities of digital tools more widely. For example, Admicom's Adminet software makes e-invoicing part of an overall system that integrates all of a company's functions into a single automated software package.
- For many who have been sending their invoices in paper form up to now, this could be a good moment to think about modernising their practices more broadly. It's easy to get a patchwork solution to meet the legal requirements with an e-invoicing service, but as part of an overall system there are wider benefits to be gained, including time savings and better business traceability.
