What is the law regarding electronic or paperless invoicing?

Currently, and until July 2024, several formats are accepted by companies for supplier invoices:Paper invoices, which can then be digitized and stored as PDFs;EDI (Electronic Data Interchange) electronic invoices;Invoices secured under the RGS (General Security Reference) principle.Under article A102 B-1 of the Book of Tax Procedures, the digitization of commercial documents (such as contracts or supplier invoices) is allowed by law provided that the copy is fully consistent with the original.However, things will change again starting on July 1, 2024 when electronic invoicing (or e-invoicing) for professional operations will become mandatory. Suppliers will be required by law to send invoices in electronic format to their clients.This requirement will apply to the purchase of goods and services starting on:July 1, 2024 for large companies;January 1, 2025 for medium-sized companies;January 1, 2026 for small and medium-sized enterprises (SMEs) as well as micro-enterprises.As a result, electronic and paperless supplier invoices will become the norm for all commercial exchanges between professionals after January 1, 2026.

Why should companies turn to paperless invoicing now?

Companies don’t need to wait until the law on electronic invoices changes before switching to paperless billing. Digitizing invoices has several advantages for companies and those benefits are available right now.Save time managing supplier invoicesBetween receiving and paying an invoice, the processing of supplier invoices carries a cost in both time and money.By digitizing and streamlining the invoice management process, you can get a quick return on investment.Qonto provides an efficient solution for centralizing and digitizing your supplier invoices into one simple and intuitive interface. It can:digitize invoices based on a simple photo;automatically detect VAT and supplier data;prepare payments thanks to our intelligent tool that detects essential data (IBAN, due date and amount);give you real-time visibility over invoices that require payment or any other action on your part.In addition to making the management of your business easier, a digitized invoice solution strengthens your relationships with suppliers.Become legally compliant todayAs previously mentioned, mandatory electronic invoicing will come into effect after July 1, 2024 for invoices issued by your suppliers.Switching to digitization today has multiple advantages:getting you familiar with the process ahead of time;updating your procedures;making sure your software is adapted;going paperless and reducing your impact on the environment.Reduce the risk of fraudFighting VAT fraud is one of the government’s main reasons for introducing new regulations on electronic billing.Additionally, electronic invoices reduce the number of attempts of payment fraud that regularly impact companies.With Qonto, you have a centralized tool for your invoices that allows you to structure your team more effectively:it controls access permissions;it allows for a smooth approval process.Make your accountant’s job easierEntering supplier invoices is a time-consuming task with low added value. With electronic invoicing, manual data entry work will gradually disappear and, with it, should the risk of errors.Thanks to the digitization of supplier invoices, your supplier accounting department will be able to focus on more strategic tasks such as:implementing a digital transformation process;monitoring for irregularities;conducting in-depth cost and spending analyses.

How can you put in place an effective process for electronic invoices?

If you’re convinced of the advantages of electronic invoicing, how can you give up the old paper process without waiting until the law change takes effect in 2024? Here are 5 tips to help you make an easy transition:1. Make sure your invoices comply with the requirements of both your your customers and the law (i.e. they include mandatory mentions, the format and mode of transmission etc.);2. Create an electronic signature that is compatible with your customers’ accounting software;3. Select a digitized invoice solution that has Optical Character Recognition (OCR) for data collection and processing;4. Carry out tests with one specific transaction before extending your supplier automation process across the board;5. Agree on efficient channels of communication with your business partners, such as a suppliers portal or a dedicated customer space.

Which software or platform should you choose to stay compliant with the law?

When choosing the best software for your transition from paper to digital supplier invoicing, you should make sure that the tool you select is capable of performing all the major operations you need it to carry out.Retrieving and processing supplier invoice dataWith the exception of EDI invoices, your invoice digitization solution should be able to extract and then decipher data using Artificial Intelligence. It should then transmit the information to your ERP or accounting software to automatically enter accounting entries.Implementing a validation processTo make your invoice digitization project a success, you should select a solution that allows you to configure your invoice management and validation process with precision.Firstly, the software must be able to determine which users can validate supplier invoices and how the process will work, for example by sending an email when a new digital document is received.Next, consider separating your different business partners into categories to set specific management rules. This way, you can establish bespoke processes for each use case.Archiving supplier invoicesEvery invoice you receive or send must be kept for 10 years starting from the close of that financial period. If you’re audited by the tax authorities, you need to be able to quickly access these supporting documents.As such, your invoice digitization solution must provide you with a tamper-proof system of archiving that allows you to easily:locate each document;discard the paper originals;reduce the amount of storage space you need.In addition to all these features, Qonto offers many features to facilitate the daily management of your business. For example:Payment methods tailored to your activity;Business travel expense management;Customizable dashboards;Integrations with over 80 kinds of accounting software.

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“When supplier invoices start stacking up, it’s not always easy to stay up-to-date and respect all the payment deadlines. Qonto makes it simple to keep track of them and, as a result, my suppliers all get paid on time.”

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