What is E-Invoicing and Its Benefits? | E-Invoicing KSA

The history of invoices dates back to thousands of years in the region of Mesopotamia, today home to Iraq, Kuwait, Turkey, and Syria. However, with advancements in technology, invoices saw a drastic change from paper and PDF to e-invoices.

Paper invoices contribute to a huge percentage of invoices shared daily. However, paper invoices are expensive, unreliable, laborious, and generate three times more CO2 than electronic invoices.

For a few decades, businesses have been interested in PDF invoices, and they are sent through email or for download. Though it is a better option than paper invoices, it still has many potholes. For example, the data must be manually transferred to the ERP system. 

On the other hand, e-invoice has many benefits over paper and PDF invoices.

What is e-invoicing?

E-invoicing is the invoice exchange in a specific standardised format and contains data in a structured form. Moreover, they can be rendered during processing into visual formats, and e-invoicing solutions can help reach new levels of invoice processing performance. 

When e-invoicing in KSA is mandatory for all taxable goods and services that are subject to value-added tax (VAT), let us read further about what advantages it will bring.

Benefits of e-invoicing

• Time-efficient and efficient process

E-invoicing platforms can manage all accounts payable information, and businesses can access and sync data across various devices without duplicating content. As a result, it is the most time-efficient way of exchanging invoices. Moreover, it saves the delivery time.

• It is cost-efficient 

Paper invoices incur printing, paper, enveloping, and postage costs and also increase manual work. On the contrary, e-invoices are pocket friendly and also reduce laborious work. 

• Error-free method

As e-invoicing reduces manual input methods and has a full-proof way of adding data, it is one of the most accurate platforms for invoices. Additionally, billing systems also maintain the information, reducing errors during e-invoicing. 

• Secured data and reduced risk

During traditional paper invoicing, businesses have a chance of issuing fake invoicing, and there is a higher chance of tax leakage and fraud. However, e-invoicing is electronically generated and minimises the chance of deception. 

• Easy tracking

E-invoicing gives you more control, and it is trackable as all information is automatically saved. Furthermore, it facilitates businesses to understand their direction and makes room for improvement. Your invoicing journey becomes easier when you partner with efficient e-invoicing solution providers. 

Though e-invoicing has been in use for a long time now, many companies still use paper to send invoices. However, e-invoicing is one of the most strategic approaches and has become a mandate in many countries. In addition, it is a green technique, eliminating the requirement of papers.