Invoicing in 21st century

2.5.2016

Those who want to succeed need to spend time on the core of their business, not on daily administration – this should be supportive rather than a burden. Most people, therefore, facilitate the work routine by using modern technologies that surround us more and more. Normally, we pay for our purchases by credit card, bank transfers are made via internet banking. Communication via email has become routine. Software detects not only printed text for us, but also handwriting, or even converts speech to text including translations into many languages. However, invoices are still printed on paper …

Statistics show that the costs of handling paper invoices are 1-2 euros each. According to the analysis of Businessworld.cz, about 250 million invoices are exchanged annually between companies in the Czech Republic while just a little over 5 % are exchanged electronically. Is it realistic to make a change in the processing of invoices? It is possible to avoid unnecessary costs and errors in the transcription of data from paper invoices? Is it possible to save time and money by simpler processing of invoices from suppliers from the very first moment of exposure to the moment of booking and payment by the customer?

Electronic invoicing represents a significant facilitation of work and streamlining of company processes! Each quality Czech accounting system contains a free function both to receive and issue invoices in electronic format. Have you ever thought about how much time elapses from the moment the accountant issues and prints the invoice to the moment when the customer books and pays this invoice?

 

 

Electronic version  Hard copy
Sending of booked invoice by email (at the supplier) Printing of the invoice
– Stapling the invoice
– Stamp
– Signature
Transfer of the invoice to the reception
– Preparation of the address label
– Printing of the label
– Sticking on the label
– The envelope (folding invoices, inserting them into envelopes, sealing the envelope)
Receptionist goes to the post office
– Check in at the post office
– Paying postage
Return from the post office
Receipt of the email with the invoice (at the purchaser) Receiving the post at the reception of the purchaser
– Opening of the mail
– Stamping the date stamp
– Registration of received mail
Invoice approval by the responsible person – email Transfer of the invoice to the responsible person with approval rights
– Approval of the invoice
– Transfer of the invoice to the accountant for bookkeeping
Retrieval of the data from the invoice into the accounting system Re-writing of the invoice
– Bookkeeping
 Invoice waiting for maturity  Invoice ready for payment

 

Do you know how much time it takes you to find a paper invoice?

Electronic version Hard copy
Accountant searches in the accounting system for the invoice number Accountant searches in the accounting system for the invoice number
– Goes to the storage place with invoices
– Looking for the correct file, according to the invoice number
– Opens the file and looks for the invoice
– Removes the invoice from the file
– Leaves to scan the invoice
– Scans the invoice
– Returns back to the office
– Returns the invoice back to the file
– Returns the file back to storage
– Returns to his/her place
Clicks on a linked electronic invoice, and sends the invoice as needed  Scanned invoice sends as needed, by email

 

 

Does it still seem  that (in the world of modern technology) paper invoice processing is the best option for your business? Besides handling the paper invoice, the paper invoice has another indisputable disadvantage in the modern world: it assumes the work of all the cooperating parties are in one place, it brings the risk of the loss of the document and does not conform to the current trend of work in the cloud and in particular “anywhere, anytime”. It is, thus, possible to avoid the aforementioned costs and problems with paper invoices. Can you save time and money? Simply use the electronic invoice format, which is included free within good accounting systems and adopt the electronic invoicing – just as we have accepted accounting in accounting systems instead of bookkeeping on paper, working in the cloud or on-line payments instead of filling the payment order in the bank.

The European Union is aiming to digitise the public sector and create a “digital single market” by 2020. How are the business practices? May it become digital sooner? Basically, yes. The Czech Republic has an excellent position thanks to ISDOC format and QR invoice. Just seize this opportunity and take advantage that comes with the electronic processing of invoices.




More posts from Lenka Tarabová



© 2019 Moore Stephens. All rights reserved. Sitemap Privacy Policy Design by aboutblank - creative web design