What is an electronic invoice?

An electronic invoice is an invoice that is sent and received electronically and not printed and sent by postal mail. Electronic invoices are designed primarily using invoicing software and can be sent via email or an online invoice management system. Electronic invoices are mostly more environmentally friendly and more practical than printed invoices because they do not use paper and can be easily archived and consulted.

The first electronic invoices

The first electronic invoices were used during the 1980s and 1990s, when computers and information technology began to develop in many businesses. However, it was not until the 2000s that we saw a more widespread use of electronic invoices, with the rise of the Internet and information technologies.

Advantages of electronic invoices

Electronic invoices confer multiple advantages, notably:

• Reducing costs related to printing and distributing paper invoices,
• The ease of storing and consulting electronic invoices,
• Reducing invoice entry and processing errors,
• The ability to process invoices more quickly and automatically,
• Increased compliance with regulatory requirements in billing and accounting,
• Reducing the risk of loss or theft of paper invoices.

The disadvantages of electronic invoices

On the other hand, electronic invoices can also have inconveniences such as:

• The need for an IT infrastructure to store and manage electronic invoices,
• The need for businesses to update their systems to support electronic invoices,
• Additional costs associated with the development of an electronic invoicing system,
• The need for businesses to ensure that customers can access electronic invoices,
• Addiction to technology,
• Risks linked to breakdowns and cyberattacks,
• Non-compliance with data security and privacy regulations.

The steps for issuing an electronic invoice

Preparation

In order to issue an electronic invoice, you must first prepare the necessary information, i.e. details concerning the buyer, the seller, the product(s) or service(s) sold. , price, taxes…

Creation

The invoice is then generated by entering the information previously collected on electronic invoicing software.

Verification

Once the information has been entered into the software, a verification step is recommended to identify any inconsistencies and ensure that the invoice is complete.

Sending

The electronic invoice can then be issued to the recipient via a secure electronic transmission system.

Archiving

Finally, it is essential to keep a copy of the electronic invoice issued in accordance with legal requirements.

Requirements to respect

In France, electronic invoices have been mandatory for all commercial transactions since January 1, 2022. However, companies will have the possibility of issuing paper invoices until January 1, 2024 but only for their individual customers.

From this date, all businesses will have to comply with using electronic invoices for all commercial transactions with their individual customers. In the event of non-compliance with these requirements, companies may be subject to certain administrative sanctions.