April 20th, 2021

eInvoices - Tool that can save your business time and money!

Today, more than ever before, the phrase “Time is money” represents the universal business model, regardless of the size of a company. Every business person is aware of that and they are constantly looking for new ways to provide better, faster, and more efficient services. If you provide any type of service that is charged, an invoice is required. Traditional invoices are detailed and prone to human mistakes that companies cannot allow. 

With every year, paper is being replaced with digital versions of everything. There is a simple and modern way to do all the invoicing electronically, and by doing that, you save time, money, and even the environment.

Have you heard of eInvoicing and are you ready to implement it? 

With the development of technology, authorities and companies started paying more and more attention to the environment, and with businesses becoming rapidly modernized, there is a demand for digital invoices that not only contain the necessary data but are data structured and can be automatically processed as well. To ensure interoperability between different partner/enterprise systems, allowing automatic data processing, the content and format of the data record for eInvoices has been standardized across Europe (European standard EN 16931).

An electronic invoice allows invoices to be exchanged without media disruption. These can be used for the exchange of invoices between companies, customers and authorities. They enable the structured exchange of data between the biller and recipient. Besides the already mentioned automatic processing of the invoices, the e-invoices must be issued, transmitted, and received in a structured electronic way (e.g. machine-readable XML data record). An invoice that is only sent electronically - for example, an invoice that is attached to an email as a PDF and contains only unstructured data can’t be automatized easily, therefore is not understood as an electronic invoice.


An electronic invoice allows invoices to be exchanged without media disruption. These can be used for the exchange of invoices between companies, customers and authorities. They enable the structured exchange of data between the biller and recipient. Besides the already mentioned automatic processing of the invoices, the e-invoices must be issued, transmitted, and received in a structured electronic way (e.g. machine-readable XML data record). An invoice that is only sent electronically - for example, an invoice that is attached to an email as a PDF and contains only unstructured data can’t be automatized easily, therefore is not understood as an electronic invoice.

The introduction of the e-invoice goes back to an EU directive, which is intended to strengthen cross-border trade in the European internal market. It is to be expected that the regulation will have a significant impact on the economy as a whole and that companies will increasingly rely on electronic invoices among themselves in the future. Nonetheless, a third of the companies currently produce invoices predominantly or even exclusively in paper form (33 percent). The implementation of e-invoicing can be of great benefit for businesses of all sizes. From making the accounting process easy and feasible for small businesses to large time and cost-saving opportunities for some established companies, the potential is enormous. 

In Germany, according to the E-RechV , the standard XRechnung must be used for electronic invoices to public clients ( Section  4 (  1) E-RechV). This is an open, free and future-proof data standard. XRechnung is intended to standardize the handling of electronic invoices in public administration. The public administration accepts XRechnungen as well as other electronic invoices in accordance with the European standard EN 16931.

Digitization and automation of business processes are increasingly becoming part of everyday business life. E-invoices are a key component of the journey. Since November 27, 2020, federal suppliers have been obliged to invoice public contracts electronically. But regardless of the legal obligation, it is also worth considering the possibilities and advantages of e-billing for your own company.

At cierra, we’re constantly working on developing cross-platform solutions based on the latest technology and common standards, and therefore, we’re encouraging all businesses to digitize their products and services. Digitalization is the future, and eInvoices represents one of the best examples of future actions that companies are implementing. If you would like to consult a professional about this topic, and consider digitizing your business, feel free to write us at hello@cierra.de or call us on +49 551 8 9999 000.

Check our case studies, and discover businesses that we’ve helped digitize. 

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