By Miguel Zegre
It is clear that we can no longer ignore the importance of digital transformation in companies and now implementing the necessary digital technologies is becoming an obligation if we want the relationship between company and customer to be prosperous.
A fundamental part of this transformation is to be able to generate invoices in digital format.
Invoice digitization is the process of converting paper invoices into electronic documents. This change goes beyond simply scanning documents; it involves the adoption of systems and technologies that allow managing, storing and processing invoices digitally. The digitization of invoices brings with it numerous advantages and is a key point in the digital transformation of companies, improving operational efficiency and reducing costs. In this article, we will explore these advantages and provide guidance on how to implement invoice digitization in a company.
Advantages of invoice digitalization
Any new resource must be justified for its implementation and opting for digitalized invoicing is an advantage that will benefit not only customers, but also the accounting area of any company regardless of size or sector.
- Error reduction. Manual data entry is prone to errors, such as transposed numbers or lost documents. Digitizing invoices minimizes these errors by automating data capture and processing. Advanced scanning systems use Optical Character Recognition (OCR) technologies to accurately extract information from invoices.
- Time savings. Manual invoice management can be a time-consuming and laborious process. Digitization speeds up the invoice cycle by allowing immediate access to information and automation of repetitive tasks. This not only frees up staff time, but also speeds up cash flow by reducing the time required to process and approve invoices.
- Cost savings. Physical storage of paper invoices involves significant costs related to storage space, paper and ink, and file management. Digitizing invoices eliminates these costs, in addition to reducing the expenses associated with printing, mailing and document handling.
- Operational efficiency. Digitized invoices can be indexed and stored in document management systems, making them easy to search and retrieve. Users can access specific invoices in seconds using keywords, dates or invoice numbers, improving operational efficiency and reducing time spent searching for documents.
- Compliance and auditing. Digitization facilitates compliance with legal and tax regulations by providing a secure and accessible storage system for invoices. Digital systems enable the creation of auditable records that can be easily shared with auditors and regulatory authorities, ensuring that compliance practices are maintained.
- Improved access and visibility. Digital invoices can be easily shared across departments and geographic locations, improving collaboration and coordination within the enterprise. The ability to access the same information from different locations reduces the need for redundant communications and improves consistency in invoice management.
- Information security. Digital documents can be protected through access controls, encryption and backups, ensuring that confidential information is secure and protected against loss or unauthorized access. This is particularly important for sensitive financial data.
How to implement invoice digitalization
The digitization of invoices and other documents requires a well-planned and effective work, taking into account the tools to be used and the requirements to be met.
The combination of the following steps is essential for the implementation of an efficient invoice digitization system .
- Initial assessment and planning. Before implementing a digitization system, it is crucial to conduct an initial assessment to understand the company's specific requirements. This includes analyzing billing volumes, identifying current invoice management processes and establishing clear objectives for digitization.
- Software and technology selection. There are numerous software solutions available for invoice digitization, from basic scanning and OCR tools to complete document management and process automation systems. It is important to look for solutions such as those offered by Banqup, which is the best strategic ally for companies and which adjusts to the specific needs of each company, offering scalability for future growth.
- Digitization of existing documents. The first practical step in digitization is to convert existing paper invoices into electronic documents. Here we will make use of scanners and OCR (Optical Character Recognition) software to capture the invoice information and store it in a digital format. This process can be done in-house or outsourced to a specialized provider.
- Integration with existing systems. To maximize the benefits of digitization, it is essential to integrate the new system with existing business management systems, such as the ERP (Enterprise Resource Planning) or accounting system. This integration enables a seamless data flow and improves operational efficiency.
- Process automation. Once digitized, invoices can be managed through automated workflows that include validation, approval and payment. Automation reduces manual intervention, minimizes errors and speeds up the invoice processing cycle.
- Staff training. Adopting new systems requires training to ensure that employees understand how to use the new tools and processes effectively. Training should cover technical aspects, such as software use, as well as operational and compliance procedures.
- Monitoring and continuous improvement. After initial implementation, it is critical to monitor the performance of the scanning system and make adjustments as needed. This includes reviewing workflows, resolving technical issues, and assessing user satisfaction. Continuous improvement ensures that the system continues to meet business objectives and adapts to changing needs.
Is it mandatory to digitize invoices?
There is still a difference between countries and communities but it is not always mandatory. We are aware that the digitization of invoices and documents in general, is beneficial to improve accessibility to accounting information of companies, in addition to promoting sustainability by reducing the use of paper.
At the next and higher level, we find electronic invoices, which should not be confused with digitizing invoices, as they are different concepts.
The electronic invoice is a digital document that complies with a series of legal and fiscal requirements for its legal validity and in which the use of the electronic signature is required.
In Spain, it became mandatory in January 2015 for suppliers to the public administration and for invoices exceeding 5,000 euros. Although for the moment, the obligation only affects this type of operations, it will soon be imposed for B2B relations and from 2025 it is planned to implement electronic invoicing for all companies and freelancers.
Invoice digitization offers a wide range of benefits ranging from cost reduction to improved operational efficiency and regulatory compliance, that's why at Banqup you will find the solutions for an efficient digital transformation of your invoices, as you will be able to implement an invoice digitization system with careful planning, an adequate selection of technology and a customer service that will solve all your doubts.
The long-term benefits are proven, making investment in digitization a valuable strategic decision for any company.
