The way in which companies create, send and process invoices has changed considerably in recent years as a result of technological progress. With the introduction of mandatory e-invoicing, another significant change is imminent that will affect many companies. In this article, we highlight the benefits of digital invoice processing and explain why it makes sense to switch to digital processes at an early stage.
What does the e-invoicing obligation mean and when does it come into force?
The e-invoicing obligation brings fundamental changes to invoicing processes and drives digitization in Germany. From January 1, 2025, a phased introduction will begin to prepare companies for the transition to structured, electronic invoice formats.
From January 1, 2025: First phase of mandatory e-invoicing
From this date, all companies in Germany are obliged to be able to receive and evaluate electronic invoices – regardless of whether they operate in the public or private sector. Invoices must be in a structured format such as the XRechnung standard or the ZUGFeRD format.
Companies that provide goods or services to public clients are also required to issue and send invoices in electronic form. Paper and PDF invoices are no longer recognized in this context.
From January 1, 2027: mandatory shipping for larger companies
In the second phase of the e-invoicing obligation, all German companies with an annual turnover of more than 800,000 euros must send their invoices electronically. This applies to the B2B sector.
From January 1, 2028: E-invoicing mandatory for all companies
From 2028, the obligation to send invoices electronically will apply to all German B2B companies expanded. This means that the manual issuing and sending of invoices will finally be replaced by digital processes.
The advantages of digital invoice processing
The introduction of digital invoicing processes represents an important milestone in the modern business world. It involves far more than just switching from paper to electronic formats and brings with it a wide range of benefits that promote efficiency, transparency and sustainability. The key aspects of digital invoice processing and their far-reaching effects are examined in more detail below:
1. time and cost savings
Digital invoice processing reduces the effort involved in manual processes:
- No more manual data entry: invoices are automatically imported into the accounting system, minimizing human error.
- Faster processing: invoices can be validated and processed in just a few seconds.
- Lower paper and printing costs: companies save money on printing, postage and archiving.
It is estimated that the automation of invoicing processes can save up to 60-80% of the costs associated with conventional processes.
2. improved compliance and legal certainty
Thanks to its standardized formats, the e-bill meets all legal requirements. Companies benefit from this through:
- Legally compliant archiving: Digital invoices can be stored in accordance with the requirements of the GoBD (principles for the proper management and storage of books, records and documents in electronic form).
- Tax transparency: Automatic validation of invoice data ensures that tax regulations are complied with.
In addition, electronic processing makes audits by tax authorities more efficient and transparent.
3. sustainability and environmental friendliness
Digital invoice processing significantly reduces paper consumption, which not only saves costs but also protects the environment:
- Conserving resources: less paper, printer ink and energy consumption.
- CO₂ reduction: elimination of physical postal routes and logistics costs.
By switching to digital processes, companies can improve their ecological footprint and position themselves as sustainable organizations.
4. increased transparency and traceability
Digital systems allow all invoices to be tracked in real time. The advantages include
Simple audits: Audits by internal or external bodies can be carried out faster and more precisely.
Better overview: All invoices are stored centrally and can be easily searched.
Tracking and status tracking: Companies know exactly when an invoice has been sent, received and paid.
5. scalability and integration
Digital invoicing processes can be easily adapted to the needs of a growing company.
Flexibility with volume fluctuations: Whether a small company processes 50 invoices a month or a large corporation processes several thousand – digital systems are scalable.
6. minimization of errors and fraud risks
Connection to other systems: Digital invoice platforms can be integrated with ERP and accounting systems, which optimizes the entire workflow.
Manual invoice processing is prone to errors such as incorrect amounts, duplicate invoices or transmission errors. Digital solutions offer considerable advantages here:
Protection against fraud: Unique identifiers and encrypted transmission paths significantly reduce the risk of invoice fraud.
Automated validation: systems check invoices for formal and content-related correctness.
Conclusion: An investment in the future
The introduction of mandatory e-invoicing is not only a legal challenge, but also an opportunity for companies to modernize their internal processes. The benefits of digital invoice processing – from cost savings and sustainability to compliance and scalability – far outweigh the initial conversion costs.
Investing in digital technologies at an early stage is therefore a decisive step towards remaining competitive and benefiting from efficiency gains. Companies that use e-invoicing as an opportunity to optimize their invoicing processes not only ensure legally compliant processing, but also create the basis for a future-proof organization.