Digital invoice processing: 6 advantages you should know about

What does the

E-billing obligation and when does it come into force?

The e-invoicing obligation brings fundamental changes for the processes and is driving digitization in Germany. From the 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 XInvoice-standard or the ZUGFeRD format 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 send their invoices electronically. This applies for 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 entryInvoices are automatically imported into the accounting system, minimizing human error.

• Faster processingInvoices can be validated and processed in just a few seconds.

• Lower paper and printing costsCompanies 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 archivingDigital 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 transparencyAutomatic 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:

• Conservation of resourcesLess 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

• Better overviewAll invoices are stored centrally and can be easily searched.

• Tracking and status trackingCompanies know exactly when an invoice has been sent, received and paid.

• Simple auditsAudits by internal or external bodies can be carried out faster and more precisely.

5. Scalability and integration

Digital invoicing processes can be easily adapted to the needs of a growing company.

• Connection to other systemsDigital invoice platforms can be integrated with ERP and accounting systems, which optimizes the entire workflow.

• Flexibility with volume fluctuationsWhether 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

Manual invoice processing is prone to errors such as incorrect amounts, duplicate invoices or transmission errors. Digital solutions offer considerable advantages here:

• Automated validationSystems check invoices for formal and content-related correctness.

• Protection against fraudUnique identifiers and encrypted transmission channels significantly reduce the risk of invoice fraud.

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.