Digital transformation: electronic invoicing as a gateway to dematerialisation
Digital transformation is no longer a trend, it is a must for companies in all sectors. A concrete example that confirms this state of affairs is the obligation, by 2024, to dematerialise invoices, following the 2020 finance law. For professionals, it will then be a question of being ready to process dematerialised invoices. This challenge can be an opportunity for companies to modernise. Find out in this article how electronic invoicing can become a gateway to digital transformation.
Digital transformation definition and challenges
What is the digital transformation of a company?
Digital transformation is essential for companies to survive in today's ever-changing market. It is also a way to meet the increased demands of customers for responsiveness and service.
Moreover, it is not simply a matter of dematerialising documents, a process that consists of transferring data from paper to digital format. Rather, it is a global process that affects all areas of the company, from human resources to management, processes, tools and strategy. Digital transformation is mainly about integrating new technologies in order to improve the company's performance and to simplify or even automate some of the tasks.
Since it involves the complete dematerialisation of processes and documents as well as the implementation of an efficient information system, digital transformation also affects the company's partners, suppliers and customers. Its success lies in making relations with external players more fluid and efficient.
Digital transformation is therefore profoundly changing the way we work and think about the organisation of the company, as well as our working methods.
How does digital transformation boost the competitiveness of companies?
Digital transformation can be achieved in several ways, depending on the strategy put in place by the manager. Depending on the objective, it may involve :
- Adapt and follow the constant evolution of the market,
- To meet consumer expectations in terms of service, responsiveness and customer experience,
- To offer efficient and fully digitalized services to facilitate the daily life of users,
- Optimise processes to continue to grow and remain competitive,
- Automate the most time-consuming processes and/or those with low added value,
- Enable employees to focus on the most complex tasks,
- Have full control over the flow of information and the collection and processing of data,
- Improve performance measures,
- Rethinking organisation and management.
These actions aim to improve the performance and competitiveness of the company in order to ensure its sustainability.
To transform themselves, companies have several tools at their disposal, such as :
- Dematerialisation of documents
- Internet of Things
- Electronic signature
- Tools and applications
- Lean management
- Blended learning
Implemented according to a strategy defined upstream and a precise roadmap, these tools can be particularly effective in increasing the performance of a company. According to the 3rd barometer "Growth and Digital of SMEs and ETIs" published in 2019 by the Association de l'Economie Numérique, 77% of companies surveyed recognise that digital contributes to their growth.
Electronic invoicing, the first step towards the digitalisation of your processes
What is an electronic invoice?
It is an invoice that is transmitted, processed and archived completely electronically, unlike a dematerialised invoice which is a digitised paper invoice. It is generated in a secure format that can be read by all accounting software. Like any invoice, it must include all the information required for this type of document.
Digital transformation: get ready for 2024
Originally planned for 2023, the reform has been postponed to 2024. On 1 July 2024, all companies will be required to accept electronic invoices. Large companies will also have to issue them in this format. In 2025, this obligation to issue electronic invoices will be extended to SMEs and VSEs in 2026. Electronic invoicing will therefore concern all French BtoB transactions from 2024.
The aim of this reform provided for in the 2020 Finance Act is to facilitate the declaration and collection of VAT, to combat fraud and to strengthen the competitiveness of businesses.
This is already a reality for companies that have been working with government services since 2017 and that use the Chorus platform for their invoicing.
Electronic invoicing to start the digital transformation of the company
E-invoicing is part of a digital transformation process and is a good way for companies that are not yet engaged in the process to get started. This reform is a real opportunity for organisations to enter the digital age and, perhaps, to review certain other processes in parallel.
In fact, electronic invoicing has many advantages:
- Fast: processing, validation or payment is faster than with a paper invoice.
- Secure: the risk of human error is greatly reduced and documents can be stored digitally without risk of loss.
- Simple: the follow-up and processing of the invoice is extremely simple thanks to the centralisation of data in a single platform.
- Sustainable: electronic invoicing significantly reduces paper consumption for companies.
- Cost-effective: it does not generate additional costs (printing, mailing, etc.) and costs much less than a paper invoice .
Thanks to the new management tools, it is possible to automate part of the electronic invoice management and considerably reduce processing times. The interfacing between accounting, banking and invoicing management tools can also considerably improve the company's performance in this area.
Digital transformation is nowadays a crucial step for the survival of companies. To keep up with the pace and not run out of steam, they must adapt and reinvent their way of operating. Rather than undergoing the transition to electronic invoicing, a company that considers this obligation as a real opportunity will come out a winner. Do you want to start the digital transformation of your company by implementing electronic invoicing? Don't wait until 2024, contact Freedz !
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