{"id":1073,"date":"2022-12-20T10:09:00","date_gmt":"2022-12-20T17:09:00","guid":{"rendered":"https:\/\/www.filecenter.com\/blog\/?p=1073"},"modified":"2025-04-20T11:13:51","modified_gmt":"2025-04-20T17:13:51","slug":"4-challenges-in-e-invoicing-you-should-know-about","status":"publish","type":"post","link":"https:\/\/www.filecenter.com\/blog\/4-challenges-in-e-invoicing-you-should-know-about\/","title":{"rendered":"4 Challenges in E-Invoicing You Should Know About"},"content":{"rendered":"\n<p>It\u2019s been around for so long that \u201cemail\u201d has taken a place of its own in our lexicon\u2014most people forget that it means \u201celectronic mail.\u201d<\/p>\n\n\n\n<p>Along with \u201cemail,\u201d terms like <a href=\"https:\/\/www.optimizely.com\/optimization-glossary\/ecommerce-platform\/\">\u201ce-commerce\u201d<\/a> (and its catchier cousin <a href=\"https:\/\/www.merriam-webster.com\/dictionary\/e-tail\">\u201ce-tail\u201d<\/a>), \u201ce-signature,\u201d and \u201ce-conference\u201d have gradually worked their way into the language of the modern workplace, so it was only a matter of time before invoicing joined the crew.<\/p>\n\n\n\n<p>E-invoicing isn\u2019t just the future of invoicing: it\u2019s the best practice for the present as well. Savvy businesses are already on board with e-invoicing, but as with any new technology, e-invoicing isn\u2019t without its challenges.<\/p>\n\n\n\n<p>In this guide, you will learn what e-invoicing is, what challenges e-invoicing presents, and how your company can overcome those challenges with <a href=\"\/filecenter-features.html\">FileCenter.<\/a><\/p>\n\n\n\n<p><strong><em>Key Takeaways:<\/em><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>E-invoices must include specially formatted and mapped data.<\/em><\/li>\n\n\n\n<li><em>Service provider mismatches can make e-invoicing more difficult.<\/em><\/li>\n\n\n\n<li><em>Getting employees to buy in to a change can be as difficult as the change itself.<\/em><\/li>\n\n\n\n<li><em>Document security is important, but it\u2019s even more important when those documents include financial information.<\/em><\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"eInvoicing \u2013 the smarter way of invoicing\" width=\"605\" height=\"340\" src=\"https:\/\/www.youtube.com\/embed\/LuKmB7KqFI4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Structured Data<\/strong><\/h2>\n\n\n\n<p class=\"has-background\" style=\"background-color:#fce060\"><strong><em>READ ALSO:<\/em><br><a href=\"https:\/\/www.filecenter.com\/blog\/best-document-management-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">10 Best Document Management Software for Small Businesses in 2024<\/a><br><a href=\"https:\/\/www.filecenter.com\/blog\/best-document-scanning-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">10 Best Document Scanning Software for Windows 10 Users in 2024<\/a><\/strong><\/p>\n\n\n\n<p>The simplest definition is simply that an e-invoice (or <a href=\"https:\/\/www.medius.com\/glossary\/what-is-e-invoicing\/\">\u201celectronic invoice\u201d)<\/a> is an invoice sent via electronic means. While you most likely have a good understanding of what both \u201cinvoice\u201d and \u201celectronic means\u201d are, fully understanding the challenges of e-invoicing requires a closer look.<\/p>\n\n\n\n<p>If an e-invoice was simply an invoice delivered via electronic means, then can\u2019t I just take a picture of my paper invoice and email it to a customer? While you <em>could <\/em>do that, you wouldn\u2019t be sending them an e-invoice.<\/p>\n\n\n\n<p>E-invoices include <a href=\"https:\/\/www.tibco.com\/reference-center\/what-is-structured-data\">structured data<\/a>, which means data that is in a predefined format and order so that fields from the invoice map to fields in other software.&nbsp;<\/p>\n\n\n\n<p>For example, if you can remember what it was like to buy a song on iTunes to put on an iPod: the data from iTunes was structured. Your iPod knew the name, artist, album, year, etc., because all that information was in a predetermined format and order.<\/p>\n\n\n\n<p>If you ever tried putting a song from a CD onto your iPod, it didn\u2019t have access to that same information (unless you used the internet to structure the data through iTunes), so songs may show up as \u201cTrack 01\u201d by \u201cUnknown.\u201d<\/p>\n\n\n\n<p>That is the same concept at play with e-invoices: rather than sending just the information, an e-invoice should include the information in the correct order and format so the recipient can map it to the right fields automatically.<\/p>\n\n\n\n<p>The first challenge of e-invoicing, then, is structuring data in a way that\u2019s useful to the recipient. Doing that requires the right service provider and <a href=\"\/portal-features.html\">document-sharing technology.<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><a href=\"https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"707\" src=\"https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-1024x707.jpg\" alt=\"Structured data conforms to a predefined model and requires less storage space\" class=\"wp-image-1074\" style=\"width:768px;height:530px\" srcset=\"https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-1024x707.jpg 1024w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-300x207.jpg 300w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-768x530.jpg 768w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-100x69.jpg 100w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-150x104.jpg 150w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-200x138.jpg 200w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-450x311.jpg 450w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-600x414.jpg 600w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2-900x621.jpg 900w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-1-2.jpg 1211w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Image Source: <a href=\"https:\/\/blog.collabware.com\/what-is-unstructured-data-intelligence-why-is-it-becoming-essential\">https:\/\/blog.collabware.com\/what-is-unstructured-data-intelligence-why-is-it-becoming-essential<\/a><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Service Provider Mismatch<\/h2>\n\n\n\n<p>Have you ever tried to download an Apple app onto an Android phone? Put diesel gas into an unleaded engine? Put an Xbox game into a DVD player?<\/p>\n\n\n\n<p>It isn\u2019t a matter of having the right information if it isn\u2019t in the right format. The <a href=\"https:\/\/tiekinetix.com\/en\/blog\/6-e-invoicing-implementation-challenges#4-corner-model\">4-corner model<\/a> is a framework that solution providers use to understand e-invoicing, and it\u2019s named after the 4 parties involved in an e-invoice exchange:<\/p>\n\n\n\n<p>1. The Supplier (the one who is sending the e-invoice)<br>2. The Supplier\u2019s Service Provider (the provider sending the e-invoice on behalf of the sender)<br>3. The Buyer\u2019s Service Provider (the provider receiving the e-invoice on behalf of the recipient)<br>4. The Buyer (the one who is ultimately receiving the e-invoice)<\/p>\n\n\n\n<p>Think of it like mailing a postcard from the United States to a friend in England: the postcard starts with you before the USPS picks it up and sends it along to the Royal Mail, who delivers it to your friend. If the USPS and Royal Mail can\u2019t coordinate, you\u2019ll have a difficult time getting that postcard to its destination.<\/p>\n\n\n\n<p>Frequently the supplier and buyer use the same service provider, which makes your job easier (like sending mail locally), but when there\u2019s a mismatch between service providers, this requires extra work for you to onboard data in the correct format to your service provider, so it maps to the right fields for your recipients.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Organizational Buy-In<\/h2>\n\n\n\n<p>Sometimes the difficult part of an organizational change isn\u2019t the change itself: it\u2019s getting people to accept it.<\/p>\n\n\n\n<p>Organizational buy-in is important for any process to truly take hold and be effective, but <a href=\"https:\/\/www.michiganstateuniversityonline.com\/resources\/leadership\/how-to-get-buy-in-for-organizational-change\/\">inspiring that buy-in<\/a> is a difficult task, especially when people are attached to their current procedures. To inspire that change, focus on the <a href=\"https:\/\/www.engagementmultiplier.com\/resources\/the-key-to-leading-change-employee-buy-in\/\">4 Ps of the change:<\/a> Purpose, Picture, Plan, and Part.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Purpose <\/strong>describes why you are making the change.<\/li>\n\n\n\n<li><strong>Picture<\/strong> communicates how the change will influence the future of the organization.<\/li>\n\n\n\n<li><strong>Plan <\/strong>outlines the steps your organization will take to implement the change.<\/li>\n\n\n\n<li><strong>Part <\/strong>explains what individual people need to do to make the change a reality.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1.png\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1.png\" alt=\"The \u201cFour Ps\u201d of change management demonstrates how to increase organizational buy-in\" class=\"wp-image-1075\" style=\"width:768px;height:768px\" srcset=\"https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1.png 1024w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-300x300.png 300w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-150x150.png 150w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-768x768.png 768w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-100x100.png 100w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-200x200.png 200w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-450x450.png 450w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-600x600.png 600w, https:\/\/www.filecenter.com\/blog\/wp-content\/uploads\/2022\/11\/Image-2-1-900x900.png 900w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Image Source: <a href=\"https:\/\/www.engagementmultiplier.com\/resources\/the-key-to-leading-change-employee-buy-in\/\">https:\/\/www.engagementmultiplier.com\/resources\/the-key-to-leading-change-employee-buy-in\/<\/a><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Secure E-Invoicing<\/h2>\n\n\n\n<p>Security is important for every department of your business, but it\u2019s especially important when it involves financial information like invoices and requisition forms. Security is a major challenge for e-invoicing and choosing the right <a href=\"\/dms\">document management software<\/a> is essential.&nbsp;<\/p>\n\n\n\n<p>Since e-invoices contain financial information, it\u2019s important that you encrypt your documents when sharing them. Encryption works by taking the plain text of the source document and using an encryption key to scramble the data so that a recipient can only unscramble it with the right decryption key.<\/p>\n\n\n\n<p>Encryption is important because if an unauthorized user intercepts your invoice (for example, if somebody was piggybacking off a wi-fi connection or using a <a href=\"https:\/\/www.bbc.co.uk\/bitesize\/guides\/zj89dxs\/revision\/2\">packet sniffer<\/a> to intercept data), they will only see the encrypted data rather than the plain text revealing the details of your transaction.<\/p>\n\n\n\n<p>Securely sharing and storing documents is important, but it\u2019s hard to do without the right tools.<\/p>\n\n\n\n<p>Thankfully, <a href=\"\/filecenter-features.html\">FileCenter<\/a> can help.&nbsp;<\/p>\n\n\n\n<p><a href=\"\/filecenter-features.html\">FileCenter<\/a> is <a href=\"\/dms\">document management software<\/a> that helps users edit PDFs, scan receipts, use automation to route documents, convert <a href=\"\/blog\/the-giant-list-of-document-file-types-and-extensions\/\">document types<\/a>, and securely share encrypted documents with customers and vendors.<\/p>\n\n\n\n<p><strong><em>To learn more about how FileCenter can help, start a free trial or<\/em><\/strong><a href=\"\/filecenter-buy.php\"><em><strong> purchase today<\/strong><\/em><\/a><strong><em> to take your document management to the next level.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It\u2019s been around for so long that \u201cemail\u201d has taken a place of its own in our lexicon\u2014most people forget that it means \u201celectronic mail.\u201d Along with \u201cemail,\u201d terms like \u201ce-commerce\u201d (and its catchier cousin \u201ce-tail\u201d), \u201ce-signature,\u201d and \u201ce-conference\u201d have &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"more-link\" href=\"https:\/\/www.filecenter.com\/blog\/4-challenges-in-e-invoicing-you-should-know-about\/\"> <span class=\"screen-reader-text\">4 Challenges in E-Invoicing You Should Know About<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":3,"featured_media":3008,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[20,274,275,236,273],"table_tags":[],"class_list":["post-1073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-paperless-office","tag-document-management","tag-e-invoicing-challenges","tag-electronic-invoice","tag-encryption","tag-structured-data"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>4 Challenges in E-Invoicing You Should Know About<\/title>\n<meta name=\"description\" content=\"E-invoicing 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