On a sustainable path with e-invoicing

Founders in the skilled trades have an important advantage compared to longer-established businesses: they can rely on digital processes for commercial tasks right from the start.

This article is part of the special feature GründerNavi – for founders and young companies

Older colleagues of founders often have to "unlearn" processes involving paper documents that they have been familiar with for decades.

Getting started digitally right away is urgently needed , because in the medium term legislators will require a digital process for things like invoicing – and it also saves resources.

In many small and medium-sized enterprises in Germany, stacks of files and folders filled with paper are still commonplace. Even printing and filing invoices received by email is still widespread . This practice inevitably leads to difficulties during a tax audit if the digital version isn't digitally archived. Young companies shouldn't even start down this path and should instead digitize their entire business processes from the outset – or, if they're taking over an established business, modernize it accordingly.

Quote"Start-ups in the skilled trades should rely on fully digital commercial processes with e-invoicing and digital receipts right from the start."
Christian Neuser, Head of Sales for Companies, DATEV eG
Follow me on LinkedIn @Christian Neuser

Pilot through the shoals of accounting and co.

Christian Neuser, Head of Corporate Sales, DATEV eG. Photo: © DATEV eG

They receive support from a tax consulting firm that assists them with their start-up or acquisition project . In most cases, the use of online solutions from DATEV eG is a good option. DATEV eG is an IT service provider that, in cooperation with tax advisors, guides medium-sized companies through the complexities of the (tax) legal requirements for financial accounting, payroll accounting, and annual financial statements/balance sheets – meaning they no longer need to concern themselves with the details of the "Principles for the proper management and storage of books, records, and documents in electronic form" (GoBD).

Photo: © DATEV eG

The central element of digital business processes is the e-invoice . This is not a PDF invoice , but a technical format containing structured, machine-readable data sets that can be processed digitally, semi-automatically, for example, in financial accounting. Even today, companies providing services to the public sector (B2G) are required to invoice these services using a so-called XRechnung , an e-invoice in a data set format developed specifically for administrative purposes.

Following the federal level, all German states are successively switching to the so-called XRechnung (e-invoice ). Since April 1, 2023, Mecklenburg-Western Pomerania, along with Baden-Württemberg, Bremen, Hamburg, and Saarland, has also been among the states where invoices to public administrations can only be submitted according to the XRechnung standard. Hesse and Rhineland-Palatinate will follow in 2024.

Photo: © DATEV eG 2021

Let records work and enjoy weekends

The obligation to issue e-invoices is also imminent in the B2B sector . Preparations for corresponding legislation are currently underway in Germany and at the EU institutions. This is already in place in some EU countries.

Those who avoid handling paper invoices altogether save on costs such as printing , envelope stuffing, postage, and filing, as well as unnecessary weekend work. E-invoices enable significantly more efficient and semi-automated data processing in business processes and collaboration with tax advisors. Furthermore, cloud solutions allow office work to be done from anywhere with a secure internet connection – for example, with DATEV's invoicing software and DATEV SmartTransfer for sending digital documents such as credit notes and payment reminders.

Checklist 2023 What commercial IT solutions must provide for craft businesses:
✓ Completely digital: They enable seamless digital processes with external partners, such as  Tax consulting firm.
✓ Sustainability: E-invoicing and cloud solutions reduce the consumption of paper, space, electricity and other resources.
✓ Up-to-date: All common and accepted e-invoice formats are supported and current legal changes are taken into account.
✓ Flexibility: They adapt flexibly to the needs of a growing company and can also be accessed at home and on the go.
✓ Reliability: They are audited, reliable and comply with the principles of proper accounting for the digital age, the GoBD.
✓ Secured data: Data protection, data security and audit-proof archiving are guaranteed – even in the cloud.
✓ Control: Business analyses show current business developments. Negative trends can be identified promptly, allowing for early intervention.

Conclusion

Legally secure: The obligation to issue e-invoices in B2G and B2B business is just around the corner.
Sustainability: Digital processes without file folder management are resource-saving.
Easy: Software should be able to create and process standard formats for e-invoices.
Professional: Design commercial processes digitally with solutions from DATEV and partners.
Digital: Send and receive invoices – easily with DATEV SmartTransfer in the cloud.
Free weekend: Collaboration with a tax advisor and efficient processes save time.

DHB is now also available digitally! Simply click here and register for the digital DHB!