Many of our users relied on Excel, or even Word or InDesign for the more daring, before discovering Furious to create their quotations and invoices.
However, beyond the aesthetic limitations and the time spent on these tasks, the choice not to use dedicated invoicing software is proving to be a real mistake in the day-to-day running of your business.
Indeed, an invoice drawn up without the use of approved software (whether single-tasking or ERP such as Furious) can be legally challenged. What’s more, integrating an invoicing tool into your management system offers multiple advantages, and that’s precisely what we’re going to detail for you.
To begin with, invoicing software gives you better reporting and accurate VAT tracking. You can be sure that all legal and compulsory information is included on your documents, in line with the requirements of the French public finance authority (DGFIP). This is all the more important if you’re a company subject to VAT, or if you carry out transactions with the public sector.
Software such as Furious ensures that every invoice issued complies with current standards, by clearly displaying essential information such as the SIREN number, the address of the sender and recipient, as well as details of the delivery or service provided.
When an invoice is issued, it must be transmitted via a dematerialization platform approved by the DGFIP, thus ensuring secure transmission of transaction data. In 2023, the deadline for the introduction of electronic invoicing between companies has been postponed, which means that all companies involved in invoicing must be ready to issue their invoices in a structured format that complies with DGFIP requirements.
In short, the use of invoicing software is now a crucial element in your company’s administrative management. It guarantees the conformity of your documents, facilitates the transmission of essential data to the DGFIP, and saves you precious time (automation of estimates and invoices). Don’t underestimate the importance of this step, and make sure you choose the best solution for your company, so that you’re perfectly prepared for the widespread introduction of electronic invoicing.
*April 2024: our software, Furious, has just received the renewal of NF203 certification for the year 2024/2025 and with the congratulations of the jury – a guarantee for our customers of compliance with the new standards for electronic invoicing. We are a certified software!
What is electronic invoicing and why has it become essential?
Electronic invoicing is the sending and receiving of invoices in digital format, enabling faster, more secure and eco-responsible processing. E-invoicing has taken on a predominant role in the business world, particularly with legislative changes making it compulsory in many cases.
- Modernity and efficiency: in an era where everything is speeding up, electronic invoicing means you don't have to waste time with mailings and the risk of error associated with manual data entry.
- Enhanced security: electronic invoices are often more secure than their paper counterparts, with encryption and electronic signature systems.
- Simplified archiving: no more dusty filing cabinets! Your invoices are stored digitally, making them easier to find and access when needed.
- Eco-responsibility: by choosing electronic invoicing, you're helping to reduce paper use and cut your carbon footprint.
The benefits of electronic invoicing for businesses
The adoptioan of electronic invoicing represents a lever for growth and security for companies in all sectors.
- Reducing costs: less paper, fewer mailings, fewer errors... Electronic invoicing offers substantial savings.
- Improved cash flow: payments are often faster with electronic invoices, improving the company's cash flow.
- Conformity assured: with the growing obligation to switch to electronic invoicing, its adoption ensures your compliance with the latest regulations.
- Optimized supplier and customer relationships: the clarity and speed of electronic transactions help build trust between you, your suppliers and your customers.
So integrating electronic invoicing into your processes is not just a legal obligation, it’s also an opportunity to optimize your management and enhance the security and efficiency of your business transactions.
Bonus: the obligation to digitize invoices
The French government’s Finance Act for 2020 and 2021 aims to speed up its plan to modernize the economic life of companies (or e-invoicing) and the transmission of data to the tax authorities (or e-reporting). By way of example, some countries such as Italy are more advanced than us on this subject.
The obligation to digitize invoices will therefore become effective on July 1, 2024 for all B2B exchanges.
Why will this be the case?
- Reduce processing costs.
The cost of processing invoices is not negligible, and the difference between the paper version (estimated at 10 euros) VS the dematerialized version (estimated at 1 euro) speaks for itself…
- Simplify and increase the reliability of exchanges / reduce payment times.
It’s also clear that it’s easier to ensure that invoices are received correctly, to simplify exchanges between suppliers and customers, and to speed up the whole process by going paperless. But this requires all stakeholders to be able to issue and receive electronic invoices.
- Renforcer la lutte contre la fraude à la TVA, mais également pré-remplir vos déclarations de TVA. Bref une meilleure traçabilité.
- Strengthening the competitiveness of French companies
Is electronic invoicing mandatory in France, and who is affected?
Since the announcement of the Finance Law for 2020 and 2021, the French government has clearly stated its desire to accelerate the digitization of commercial transactions and data exchanges with the tax authorities. But then, has electronic invoicing become an obligation for all businesses?
- Mandatory for all B2B exchanges: from July 1, 2024, electronic invoicing will be mandatory for all business-to-business (B2B) exchanges.
- Who is affected? All companies, whatever their size or sector of activity, will be affected by this obligation. Cela inclut les PME, les grandes entreprises, mais aussi les auto-entrepreneurs.
The impact of mandatory electronic invoicing on SMEs and large companies
The obligation to switch to electronic invoicing will have a major impact on business operations, particularly for SMEs that have not yet taken the digital plunge.
For SMEs :
- Investing in suitable tools: SMEs will need to invest in e-invoicing solutions to comply.
- Team training: it will be necessary to train employees in the use of these new tools.
- Optimizing internal processes: this is an opportunity to review and optimize internal processes related to invoicing.
For large companies :
- Adapting existing systems: large companies, often already equipped, will need to adapt their systems to comply with the new requirements.
- Strengthening security: digitizing invoices requires a high level of security to protect sensitive data.
Key dates for implementing mandatory electronic invoicing
Compulsory electronic invoicing will be phased in gradually, with key dates not to be missed.
- July 1, 2024: obligation for all companies to accept electronic invoices.
- July 1, 2024 - June 30, 2025: large companies will have to issue all their invoices in electronic format.
- July 1, 2025 - June 30, 2026: intermediate-sized companies will in turn be obliged to issue all their invoices in electronic format.
- From July 1, 2026: this obligation will extend to SMEs and micro-businesses.
However, these were the dates originally planned. Now, implementation has been postponed and will be decided during the Finance Act for 2024.
In short, the transition to electronic invoicing is not only a legal obligation, it also represents an opportunity for companies to modernize their practices, gain in efficiency and strengthen the security of their commercial exchanges. It is therefore crucial for every company to prepare and adapt to these changes to remain competitive and in compliance with legislation.
What are the deadlines for compliance?
Laurent Chetcuti, Partner at KPMG, shared his expertise with dafMag.fr:
“From July 1, 2024, all companies will have to be able to receive an electronic invoice. On the same date, large companies will be obliged to issue electronic invoices. This obligation will be effective from January 1, 2025 for ETIs and January 1, 2026 for VSEs and SMEs. The legal structure of the company is taken into account, not that of the group”.
At that point, you have two choices:
- deposit your invoices on accredited platforms.
- ou les déposer directement sur le portail public de facturation, ce que font déjà par exemple les entreprises italiennes.
How should my invoices look?
As you will have gathered, the French government and, more broadly, the European Union, are using this directive to standardize and structure invoices, in order to enhance the consistency, security and quality of the data they transmit to the tax authorities.
Invoices issued and received will have to comply with a specific format and precise data in order to be processed automatically.
So goodbye to non-standard paper and PDF formats!
You’ll also have to provide the tax authorities with data from :
- of your sales to foreign companies and/or individuals (French and foreign)
- of your purchases from foreign companies.
- of certain invoices issued, as well as their status.
What are the standards and formats for electronic invoices?
To comply with the new legislation and ensure a smooth transition to electronic invoicing, it’s essential to understand the standards and formats your invoices must meet.
- UBL (Universal Business Language) format: this is a standardized format for electronic business documents, recommended by the European Union.
- Factur-X: this is a French-German standard that enables electronic invoice data to be integrated into a PDF file, making it easier to read by both man and machine.
Why these formats?
- Interoperability: these standards enable better communication and data exchange between the different IT systems used by companies and the tax authorities.
- Automated processing: thanks to these formats, invoices can be processed automatically, reducing errors and speeding up processing times.
Data to be communicated :
- Sales with foreign companies and individuals: you must transmit data relating to these transactions.
- Purchases from foreign companies: this information must also be communicated.
- Payment of certain invoices: it is necessary to transmit payment information and invoice status.
In short, adopting the right formats and standards for your electronic invoices is not just a question of compliance; it’s also a way of simplifying and accelerating your invoicing processes, while reducing the risk of errors. This is a crucial step in ensuring that your company is ready and equipped to meet the requirements of mandatory e-invoicing.
What are the risks if I don't comply?
It goes without saying that electronic invoicing is an effective weapon in the fight against lengthy payment deadlines, improving your BRF and thus avoiding bankruptcy. Today, it is estimated that France owes almost 420 billion euros in financial debts!
Those who fail to comply will be penalized: “For non-compliance with e-invoicing, they risk a fine of 15 euros per invoice, limited to 15,000 euros per year. For non-compliance with e-reporting, the fine is 250 euros per transmission, again limited to 15,000 euros per calendar year. But the main penalty is, indirectly, cash. If a company fails to submit an electronic invoice, it simply won’t be paid,” adds Laurent Chetcuti.
How do I prepare for it?
What are the steps involved in setting up electronic invoicing in your company?
Implementing electronic invoicing is a process that requires organization and precision. Here are the key steps to follow:
- Needs assessment and existing resources: analyze the tools and systems you currently use for billing.
- Research and choose an e-invoicing solution: opt for software tailored to your company's size and specific needs.
- Team training: make sure your employees are trained and comfortable with the new system.
- System testing: before switching completely to e-billing, run some tests to make sure everything is working properly.
- Implementation: once everything is ready and tested, implement e-invoicing company-wide.
- Monitoring and adjustments: monitor the process and make any necessary adjustments to ensure a smooth transition.
Electronic invoicing platform: how to choose the right solution?
The market offers a multitude of e-invoicing solutions, and it’s crucial to choose the one that best suits your business.
- Ease of use: opt for an intuitive, easy-to-use solution.
- Compliance with legislation: make sure the solution complies with current norms and standards.
- Integration with your other tools: the solution must be able to integrate easily with the other software you use.
- Support and assistance: check the quality of the customer support offered by the supplier.
In short, every change is an opportunity, and this reform gives you yet another reason to get an ERP.
Contact us for a quick demo, which could change your life!
