In 2019 it is safe to say that almost every work flow in a business is computerized. One of the main branches to experience a major technological revolution is the financial branch. The next article is about to review one of basic elements of modern financial communication: invoices. Computerized invoices are divided into two main types: electronic invoices and digital invoices. There's a lot of confusion between the two. This article is meant to clear that confusion.
Electronic invoicing or e-invoicing is an umbrella name for numerous elements and methods of communication between trading partners. Business to business, business to client, and any other possible relationship. E-invoicing could refer to any trading or financial documents exchange as well as to legal documents exchange. E-invoice refers specifically to invoices that are transferred electronically. E-invoices are generated in unique programs. These programs generate unique file types like EDI for example (electronic data interchange).
e-invoices are usually generated and viewed in ERP or similar accounting systems. managing this kind of operation on a regular basis requires the necessary human resources. People with the proper knowledge in accounting that are familiar with these kind of systems, as well as an IT staff to manage the technical aspect of the system.
The definition digital invoice refers to any kind of invoice that can be viewed and transferred digitally. Some digital invoices are signed with an electronic signature. These are the more advanced digital invoices that require a suitable digital invoice system. A system that enables digital signature must be legally approved since the invoices are legal documents later to be used for tax purposes. The use of an approved digital invoice grants the client full legal responsibility. The received signature of the citizen signing on the other side of the screen are one hundred percent legally admissible. Another crucial characteristic of a digital invoice is its ability to interface different accounting systems. Basically, any kind of e-invoice is a digital invoice but not every digital invoice as an e-invoice. A scanned PDF of a paper invoice, for example, can be considered as a digital invoice as well. but this is not an e-invoice.
A certified authority is a term describing a company that is legally authorized to provide the ability to produce digital invoices for those who request it. For a company to be considered as such (certified authority), it must meet the severe standards of digital invoice laws and regulations which are assigned by the relevant authorities within the ministry of justice.
Introducing, ComSign. A leading company in the digital accounting field. ComSign is legally approved and licensed to issue digital signatures throughout the different industries of Israel's economy. Shortly after being assigned by the Israeli legal department, ComSign had become the leading company in this field. Today, Every Israeli citizen can establish a digital invoice with the help of ComSign. The digital invoicing services of ComSign are approved by Microsoft, Apple, Google and Adobe. ComSign is well experienced in the implementation of digital invoice systems and would gladly assist in all aspects of digital accounting for your business.