Why is that so? Because many of the benefits attributed to e-invoicing can also partly be achieved with a well-organized process around PDF invoices. Think of cost savings through automation or more efficient processing through OCR technology, this software has been in use for a long time. So why should you, as an organization, seriously work on e-invoicing?
Disadvantages of OCR
In recent years, software vendors have invested a great deal of time and energy in improving OCR software. With the introduction of machine learning and, more recently, AI, significant steps forward have been taken. However, processing a PDF invoice always lags behind a qualitative and complete e-invoice (XML). With an e-invoice, there is no loss of data quality, and recognizing invoice lines is 100 percent accurate. This high data quality makes the difference between manual actions or no manual actions and offers the possibility of system checks (such as: “Is there an outstanding order in the invoice?”) fully automated. In addition, as a result of the system checks, the supplier can be directly fed back without the intervention of an employee.
A number of these basic system checks are built into e-invoicing via the Peppol network as standard. An additional advantage of Peppol is that both sender and recipient are validated, making invoice exchange safer than PDF invoices.
However, many organizations still work with outdated OCR software. As a result, they do not benefit from the latest innovations, let alone the ability to automatically check whether an invoice meets the latest compliance requirements.
Looking beyond just the invoice
The biggest added value of e-invoicing lies in the wider context of digitization. E-invoicing is not an end in itself, but a means of taking processes in your own organization and that of the supplier to a higher level. As described, e-invoicing wins over the PDF invoice with flying colors. By combining e-invoicing with, for example, e-orders and digital status messages, you can achieve even more benefits that are hardly or hardly achievable with PDF invoices.
Imagine a chain where an order is placed digitally, the invoice is generated automatically and the status of delivery is continuously visible. Not only is this minimizing the margin of error, but you also have real-time insight into your financial and operational processes. Think of automatic communication about delivery dates and billing statuses. This type of integrated digitization really adds value to the process. This is not a piece of the future, this is already possible today.
The future is called ViDA
In addition, European regulations are gaining momentum. It VAT in the Digital Age (ViDA) package from the European Union introduces an obligation for e-invoicing and digital VAT reporting. This means that the PDF invoice as we know it will be a thing of the past in the foreseeable future. From 1 July 2030, all invoices that cross the national border between European countries must be exchanged electronically.
Member States may also make e-invoicing mandatory for domestic transactions. Countries such as Belgium, Germany and France have also published legislation requiring domestic e-invoicing from 2025 and 2026.
This is not just a technological change; it has profound consequences for how companies do business with each other. Organizations that are already investing in e-invoicing will soon be better prepared for this transition and are already benefiting from an advantage.
A step towards true digitization
It is understandable that many organizations doubt whether e-invoicing is worth the investment. But if you look beyond the benefits for invoice processing, it becomes clear that e-invoicing is a crucial step towards true digitization. It simplifies complex processes, reduces the risk of errors, and provides insight and control that are impossible with traditional methods. It teaches you how to communicate with your suppliers about their needs for the process.
What to expect?
To support organizations in this transition, we will publish a series of blogs about e-invoicing and related themes in the coming period, including:
- How do you approach the topic of e-invoicing?
- What knowledge do you need to get started?
- Which process choices are relevant to make maximum use of the benefits of e-invoicing?
It's time to not only think about e-invoicing, but to actually get started with it. Because in the world of tomorrow, digitization is no longer an option, but a necessity.
On Thursday, February 6, 2025, we will host a knowledge session about e-invoicing. Do you want to be here? Sign up for our newsletter and be among the first to receive the invitation.
In addition, stay tuned to our blog for more insights and practical tips. Together, we'll prepare your organization for the future of digital business.
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