Managing supplier invoices efficiently is a crucial factor in the financial flow of your business. Today, there are two main options: PDF invoices and e-invoices. The difference between PDF invoices and e-invoices lies in their processing: PDF invoices require an OCR interpreter or manual registration, while e-invoices allow for automatic processing without OCR interpretation. But how do you know which one is best for your business? In this article, we clarify the concepts and guide you to an informed choice.
What you will learn in this article:
- What a PDF invoice is and how it works
- What an e-invoice is and its benefits
- Main differences between PDF invoices and e-invoices
- How to create and send invoices in both formats
What is a PDF invoice?
A PDF invoice is a digital version of a paper invoice. It is generated in an invoicing program and sent as an attachment via email. The format preserves the appearance and information of the invoice, but requires OCR interpretation or often manual handling, which can be time-consuming and involve the risk of errors when registering in the financial system.
What is an e-invoice?
An e-invoice is a digital invoice in a structured format that enables electronic invoice processing. E-invoices follow standardized formats, such as PEPPOL BIS or Svefaktura, and are sent directly between business systems via secure networks, such as Peppol networks. Sending an e-invoice over a network requires an agreement with an operator (also known as a VAN operator or access point). This solution eliminates the need for manual input, eliminating errors and saving time.
Main differences between PDF and e-invoice
Automation
E-invoices allow for a fully automated process, while PDF invoices often require manual handling or an OCR interpreter.
Accuracy
E-invoices minimize the risk of errors by transmitting all data in a structured format. PDF invoices may require manual input, which increases the risk of mistakes.
Compliance and legal requirements
In many countries, e-invoices are mandatory for business with the public sector. PDF invoices do not always meet these requirements.
Environment and sustainability
E-invoices contribute to a more sustainable business by reducing paper consumption and physical handling.
Effectiveness
E-invoices reach the recipient immediately and can be processed automatically, while PDF invoices can cause delays due to manual handling.
Which format is best for your business?
If you want to streamline your invoice management, reduce errors and comply with current regulations, e-invoices are the optimal choice. For smaller companies or businesses where automation is not a priority, PDF invoices can be a simpler solution.
As more countries and businesses adopt e-invoicing, it is becoming increasingly clear that this is the future of digital invoicing. By understanding the differences between the various formats, you can make an informed decision and optimize your company's invoicing processes.
How do you create a PDF invoice?
- Use an invoicing program that supports PDF export.
- Create the invoice with all the necessary information (customer details, amount, VAT, etc.).
- Export the invoice as a PDF file.
- Send the invoice by email to the customer.
How do you create an e-invoice?
- Sign a contract with a VAN operator if you do not already have one.
- Set up e-invoicing - Make sure your ERP system and/or e-invoicing solution is configured for electronic invoicing. All modern ERP systems have this capability.
- Sending the invoice - The invoice is sent via your e-invoice operator/VAN operator. The operator forwards the invoice to the customer's system or the customer's own operator.
- The customer receives and processes the invoice automatically without manual handling.
Want to know more about how e-invoices can streamline your business? Contact us today and we'll help you get started!