In times of digitalization, the introduction of e-invoicing and the ZUGFeRD standard in particular has fundamentally changed the management of financial processes. Companies are now facing the challenge of preparing for the upcoming obligation to issue invoices electronically in the B2B sector from January 1, 2025.
However, this changeover is not just a legal requirement, but also an opportunity to become more efficient and competitive. In this blog article, we take a closer look at the importance of e-invoicing and the ZUGFeRD standard as well as the benefits
The future is structured: E-invoices with ZUGFeRD are more than just digitization
An e-invoice is an electronic invoice that goes far beyond simple digitization in the context of ZUGFeRD. We are not talking about a digital PDF here. Rather, e-invoices with ZUGFeRD consist of a structured format with multiple data records:
- Invoice data
- Reporting data: This is VAT data that is transferred to a government reporting platform in real time.
- Status information as data for exchange
All of this structured and machine-readable data is contained directly in the e-invoice, enabling seamless electronic transmission, receipt, invoice processing and payment without media discontinuity. This facilitates efficient, automated processing and payment of invoice amounts.
The introduction of the e-invoice and the structured approach of ZUGFeRD is aimed, among other things, at combating VAT fraud and thus generating additional tax revenue.
Efficient, transparent, future-proof: the advantages of e-invoicing with ZUGFeRD
But it’s not just the state that benefits from e-invoicing with ZUGFeRD. It is also a step towards modern, efficient financial processes for companies. These are the most important reasons why companies should start using e-invoicing with ZUGFeRD immediately:
Seamlessly digitized and automated processing of e-invoices saves companies time, as they no longer have to be processed manually. This minimizes the effort required for data entry and sources of error.
Cost savings
Paper and printing costs are eliminated. Above all, companies can save considerable costs thanks to the significantly reduced administrative workload.
Increased efficiency
The structured, machine-readable data in ZUGFeRD format enables invoices to be processed faster and more accurately. This shortens processing times and increases efficiency.
Improved transparency and traceability
The integration of ZUGFeRD makes it easier to keep track of incoming and outgoing invoices. Errors in financial processes are minimized and compliance is improved.
Interpolarity
ZUGFeRD promotes interpolarity between different accounting systems. This allows companies to communicate seamlessly with their business partners, even if they use different software solutions.
Legal requirements
The introduction of e-invoicing with ZUGFeRD meets the legal requirements and standards that are increasingly being demanded across borders. Companies that prepare for this at an early stage are also on the legally secure side in international payment transactions.
Competitive advantage
ZUGFeRD makes financial processes faster and more efficient. This can give companies a competitive advantage.
Software as a success factor: Choosing the right software for e-invoicing processes with ZUGFeRD
ZUGFeRD is the recognized standard for electronic invoices in Germany and meets all legal requirements. However, companies must adequately protect the data integrated in ZUGFeRD. To this end, their systems must meet the highest security standards. This is one of the reasons why choosing the right software is crucial when implementing e-invoicing systems with ZUGFeRD.
To be able to exploit all of the above-mentioned advantages with seamlessly automated financial processes, the software solution should not only be ZUGFeRD-compatible, but above all meet the individual requirements of the company.
Your requirements – our solutions: Cartago software for
e-invoicing with ZUGFeRD & more
With our modular and flexible Cartago®Live Suite, we can solve all individual challenges. The software suite can be implemented in any existing software architecture and also has standardized interfaces to SAP and Microsoft Excel.
In our success story “How the SolutionBox from Experis and Cartago Software GmbH is automating the future-proof billing of working and project times for IT recruitment agency Talent Solutions”, you can read how we developed a customized solution. It automates the billing processes – from the receipt of data to the creation of invoice documents and electronic invoicing with ZUGFeRD:
https://cartago.com/wp-content/uploads/2023/09/Success-Story_digital_payroll_eng.pdf
We would also like to draw particular attention to our Data Manager. This software module is used to obtain, process and output the data required for ZUGFeRD. This automated, standardized and structured data management guarantees data security in accordance with the GDPR. The Data Manager can also be implemented in any existing software architecture with standardized interfaces to SAP and Microsoft Excel.
Read more about the Data Manager here:
https://cartago.com/en/products/cartagolive-datamanager-en/
Our conclusion
E-invoices with ZUGFeRD are the digital future of accounting and all financial processes. Companies that recognize and implement this development at an early stage will not only benefit from the advantages of e-invoices, but will also be more competitive thanks to the additional efficiency of ZUGFeRD.
If you would like to know more about implementing e-invoicing with ZUGFeRD in your financial processes, we would be happy to provide you with more information.
