Undoubtedly, invoicing is the most important and foremost task for every business when it comes to streamlining everything. It helps the business owners & managers keep everything in the loop and track records of their expenses and funds.
With the aid of digital technology, you can integrate E-invoicing into your business and streamline its processes. In the upcoming years, it will also become mandatory in Latvia to have all invoices as E-invoices.
Overview of E-invoicing in Latvia
E-invoicing, often called electronic invoicing, is a digital way to send/receive invoices to customers or businesses. It has become easy for businesses to seamlessly manage their invoices with their suppliers and customers from the computer. Almost every business uses E-invoices for charging their customers, paying their suppliers, and keeping a record of their expenses.
In addition to this, the official statement by the Cabinet Minister of Latvia has made it compulsory for business managers to move in this direction. In a statement on October 12, 2021, the Cabinet Minister stated that E-invoicing will be mandatory for businesses from 2025.
He stated that all transactions for B2B and B2G will need to be performed via e-invoicing to keep a record of everything by the managers. So, if you have a business in Latvia or planning to start it, you need to integrate E-invoicing before this deadline.
Advantages of Converting Your Business to E-Invoicing
When it comes to comparing the advantages of E-invoicing with paper invoicing, you will find a long list. We have listed the most important ones here:
Quick Workflow
To operate a business smoothly, you must make sure that there are no loopholes or delays in invoicing management. E-invoicing has made it simple for every person to send, receive, and pay their invoices quickly from dedicated software.
Accuracy Assured
No need to worry if you are struggling to accurate your paper invoices. E-invoicing is your most suitable choice where you can overcome such issues. It allows you to accurately send your invoices to customers/suppliers or edit the mistakes directly from your computer.
Secure Payments
E-invoicing in Latvia is also helping businesses to be secure when it comes to processing payments. It will keep you secure in terms of payment processing, and expenses management, and help you too in recording all your invoices.
Environmentally Friendly
The digital invoicing method is also helping businesses to perform well and impact the environment less. This is because there will be no exchange of papers or the manufacturing of invoices.
Fast Payments
You don’t need to struggle with the sending/receiving of invoices for further processing. It enables you to instantly send/receive invoices for your services and pay them within minutes.
Transparency
Another major advantage of E-invoicing in Latvia is the transparency. You will have crystal clear dealings with your customers and suppliers as you are sharing them invoices with forever access.
Automatic Processing
With the help of E-invoicing, you can easily automate your business’s payment processing. You can integrate software, and automate the invoice creation and acceptance.
Impact of E-invoicing on Accounting & Financial Management
Overall, E-invoicing in Latvia has changed the entire preview for the accounts managers. For example, you don’t need to follow the manual process for invoice creation and record keeping. As an account manager, your multiple tasks like invoice creation, sending, integration with the tax system, and many others will be performed automatically with the help of e-invoicing. So, you can say that it can be an all-in-one solution for the finance department of a company.
Transform from Paper Invoicing to E-invoicing in Latvia
When it comes to shifting to E-invoicing in Latvia, you can’t blindly trust the software. You have to think about different factors before finalizing the software that your company will use for invoicing.
Undoubtedly, you can find a long list of bookkeeping software like Oracle, QuickBooks, Xero, and Zoho Books. But you can’t choose any of these without making sure they are capable. You need to make sure that the software and your preferred company are obeying the laws of the country.
Here we have listed the rules that you should keep in mind before finalizing everything and switching to E-invoicing in Latvia.
First of all, you have to make sure that the selected software complies with the General Data Protection Rule as well as the Electronic Document Law of Latvia. These rules are made to let the companies be safe when using bookkeeping software.
Similarly, you should make sure that your invoices are created according to the PEPPOL BIS 3.0 billing system. It is a specific invoice format that is accepted in Latvia for e-invoicing. If your invoices are not compatible with the system, you may face legal complications.
You need to also make sure that your business is following the rules of the country when sharing your invoices and paying taxes accordingly.
Final Summary
To keep your work operating smoothly and not experience any legal problems, we recommend shifting to e-invoicing as soon as possible. It will help you manage your business properly as well as be familiar with this invoicing type before it becomes mandatory.
For more information on how we can help you get started with e-invoicing in Latvia and for advice on what practical steps you can take towards automation please contact us today.
