Digital receipt of invoices: Efficient processing and verification of invoices
Find out how digitizing incoming invoices can help you make your invoicing process more efficient and save time.
What is digital receipt of invoices?
Digital receipt of invoices refers to the process of recording and processing incoming invoices in digital form. Instead of processing paper-based invoices, electronic invoices are used to record payments for goods received or services provided. Digital receipt of invoices plays a decisive role in your financial and accounting process, as it forms the basis for recording costs and recording payments.
Mandatory information on incoming invoices
Digital incoming invoices must contain certain mandatory information in accordance with legal requirements. These include:
- Invoice number and date
- Name and address of the supplier/service provider
- Your own company name and address
- Tax number or sales tax identification number
- Description of the goods or services provided
- Individual prices, quantities and possible discounts
- Total amount of the invoice
- The correct provision of this information is important in order to properly process the digital invoices and to correctly calculate them for tax purposes.
The benefits of digital incoming invoice processing
Digitizing incoming invoices offers a variety of advantages:
automation
By using specialized software solutions, the recording and processing of incoming digital invoices can be automated. The software automatically recognizes relevant data, such as invoice number and date, and records them.
saving time
Automatic workflows and electronic forwarding to the responsible employees enable a significant reduction in manual work. Employees can focus on value-adding tasks instead of wasting time manually entering data.
Mitigate errors
By using automatic validation rules and plausibility checks, errors and inconsistencies are identified at an early stage. This results in higher data quality and reduces the risk of incorrect bookings.
Cost reduction
Costs can be saved by automating and increasing efficiency. Manual effort is reduced and fewer resources are required to process incoming digital invoices.
The traditional, manual process of invoice processing
Traditionally, incoming invoices are processed manually. This process can be time-consuming, error-prone, and costly.
It includes the manual entry of invoice data, the reconciliation with orders and the verification of the formal accuracy of the invoices.
Verification of digital incoming invoices
When verifying incoming digital invoices, it is important to ensure that only services actually provided are paid for. Traditionally, there is a formal audit in accordance with Sales Tax Act (UStG) §14, during which the mandatory information on the invoice is checked.
Digital invoice processing offers an efficient alternative here. Specialized software solutions perform audit tasks automatically and ensure fast and reliable processing.
What digital invoice processing does for you
Digital invoice processing offers an efficient alternative here. Specialized software solutions perform audit tasks automatically and ensure fast and reliable processing.
Automatic formal review
The software automatically checks the digital invoices for formal accuracy and checks the mandatory information. As a result, only correct invoices are processed further.
Reconciliation with orders
The software enables automatic reconciliation of incoming digital invoices with the associated orders. This checks whether the invoiced services were actually ordered by you.
Reduce errors and inconsistencies
Automated verification and reconciliation with orders minimizes human errors. Inconsistencies between orders and invoices, such as incorrect prices or quantities, are identified early on and can be resolved.
Increasing efficiency
Digital invoice processing enables large quantities of incoming digital invoices to be processed more efficiently. Instead of manual checks, employees can use their time for value-adding tasks while the software does the time-consuming validation.
Transparency and traceability
With a digital solution, you always have an overview of the status and progress of the invoice audit. You can transparently track the entire process and review detailed reports as needed.
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The digitization of incoming mail: An important component for efficient workflows
Efficient digital invoice processing requires not only the automation and validation of electronic invoices, but also the handling of physical documents. Companies often still receive a variety of invoices by post that cannot be seamlessly integrated into the digital workflow.
Digitizing incoming mail is a decisive step to overcome this bottleneck. By using modern technologies such as document scanners, OCR (Optical Character Recognition) and intelligent capture solutions, physical documents can be digitized and integrated into electronic workflows.
The process starts with the recording of physical documents, during which the relevant information is extracted and recorded electronically. The digitized documents are then read into the system and automatically linked to the corresponding business processes.
The benefits of digitizing incoming mail are manifold. On the one hand, the manual processing and forwarding of physical documents is avoided, which saves time and increases efficiency. On the other hand, sources of error are minimized, as digital processing enables automatic plausibility check and validation.
In addition, the digitization of incoming mail offers the advantage of quick availability and easy search of documents. Electronic archiving allows documents to be stored centrally, quickly retrieved and easily forwarded when required.
The combination of digital incoming invoice processing and digitization of incoming mail creates a seamless and efficient workflow that includes both electronic and physical documents. As a result, companies will be able to optimize the entire invoice processing process and take full advantage of the benefits of digitization.
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