Many accounting departments are being digitized step by step. Numerous processes are changing. However, the high standard of professional expertise remains.
The field of accounting is becoming increasingly fragmented and complex for companies. The volume of data – and thus the associated manual tasks – is increasing significantly, and high expectations are also placed on the specialist knowledge of employees. For example, VAT assessments are anything but simple. Particularly in the case of internationally active companies, very complex issues can arise. However, if manual, simple activities already take up a lot of working time, this time is lacking for clarifying complex cases. The question then arises: How can all these tasks and expectations be fulfilled in a resource-saving manner?
Accounting Digitalization
Digital processes in accounting also prove their worth in times of home office. After all, more and more employees want more flexibility and the opportunity to work from home for a day. Especially in times of a shortage of skilled workers, it is therefore essential for employers to be able to score points with modern work processes. Digital data has the advantage that it can be accessed from anywhere at any time. Many companies are therefore increasingly relying on digital solutions. This is currently clearly evident, for example, in invoicing:
Invoicing is becoming digital
The topic of invoicing is of central importance. Invoices should be issued promptly and, above all, correctly to ensure the company’s liquidity. However, manual invoicing, in particular, makes the process time-consuming and prone to errors. For internationally operating companies, invoicing is also associated with considerable compliance requirements. Depending on the country, various obligations must be observed in invoicing. Which invoice format is mandatory? In some EU member states, electronic invoicing in the B2B sector is already mandatory or is to be implemented shortly. However, other questions must also be considered in invoicing:
- When must VAT be shown?
- Which tax rates should be applied?
- Is there a case according to § 13b UStG (reverse charge)?
- Does registration have to be carried out in the respective state? Or can sales be declared within the framework of IOSS/OSS procedures?
Without technological support, this is hardly manageable anymore. If the invoices are then sent in paper form, there are also paper and postage costs. The entire invoicing process then takes comparatively long – and the company has to wait longer for payments to be received. Many companies now rely on purely digital invoicing. Bitkom has determined in an analysis that only eight percent of the companies surveyed send invoices exclusively in paper form.
Invoice standard or PDF
The digital invoice is therefore becoming increasingly popular. But when do we speak of a digital invoice? There are invoices that are created according to standards, such as EDI, ZUGFeRD or XRechnung. Already 59 percent of the companies surveyed use these invoice standards. In this case, we speak of an e-invoice.
However, there are also invoices that are not created according to a standard procedure (for example, as a PDF) and are transmitted digitally. 63 percent of companies use this approach.
Outdated paper invoices
In both cases, paper invoices are dispensed with. Invoices can be sent quickly and cause hardly any costs. It should be noted that the invoice standard is mandatory in certain cases. For example, electronic invoices to public clients of the federal government must be transmitted according to the standard format.
Overall, 73 percent of the companies surveyed use invoicing – either with the help of invoice standards or as a PDF. Paper invoices are therefore being dispensed with more and more often.
Note: It is to be expected that electronic invoicing will also become mandatory in B2B (business-to-business) transactions. Corresponding plans have already been enshrined in the coalition agreement.
Analysis options
Many companies now use tools for invoicing. Proven software solutions score points here with simple processes. In addition, the invoices are created in compliance with GDPR and GoBD. Even in cross-border cases, established software solutions can already serve with automation solutions. In this way, invoicing can be designed to save time and ensure compliance.
The digitization of invoicing brings another advantage: data can be analyzed. For example, it can be determined: How quickly are the invoices paid on average? This can provide valuable insights for receivables management. The example of invoicing shows: Digitization offers a great opportunity for the finance department of companies.
How digitally is your accounting organized? What challenges do you face? We look forward to your comment.
Image source: Adobe Stock Photographer: Andrey Popov
Author
Sylvia Meier
Guest Author
Sylvia Meier is a certified financial economist (FH) and has worked at the tax office, in consulting (Big Four firm), and for a specialized publisher. Today, as a freelance consultant, she supports companies and can demonstrate numerous publications, particularly on the topics of taxes, controlling, accounting, and finance.
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November 10, 2022
