E-invoices are a useful tool for every accountant to avoid mistakes caused by human error, which waste time and money. There are also many other business advantages to "selling" e-invoicing to a manager or client.
To err is human, and we all make mistakes. At the same time, mistakes made at work inevitably affect the reputation of the accountant, either in the eyes of the employer or the client when providing accounting services. However, the option of e-invoices, which has been in use in Estonia for years, allows most typical human errors to be avoided.
This may sound surprising, as e-invoices are mostly associated with selling goods or providing services to the state or large companies. Most Estonian companies have so far encountered e-invoices in this context, as e-invoices have only been mandatory in transactions with the public sector in Estonia. However, more and more private companies are also using e-invoices, as they are simply faster, more convenient, safer, and they also avoid most accounting errors.
E-invoices reduce both errors and tedious work
This is possible because an e-invoice is nothing more than the movement of data directly between the accounting software of the seller and the buyer. Until now, it has been necessary to send the invoice as a separate document, receive it on the payer's side, usually forward it, and then manually enter the data from the file into the system. Understandably, there are several opportunities for different parties to make mistakes in this chain, from sending the invoice incorrectly or not sending it at all to entering the data incorrectly. The risks increase to the extent that the accountant performs the stages of the accounting chain alone, as there is no supportive controlling oversight.
There is no such risk with e-invoices. The monotonous work of sending documents and entering data is also significantly reduced. There is also no need to search for a lost invoice at the last minute or think about how to politely remind a colleague or client for the umpteenth time to forward the necessary document.
Therefore, it is worth adopting e-invoices both to avoid mistakes and to simplify the accountant's work. This leaves more time and energy for substantive analysis and advising the management, which is the role of a qualified top specialist in the organization. Let the computer move the data from one system to another.
E-invoices are beneficial for the entire organization
Convincing the organization's leader or the client of accounting services to gradually adopt e-invoices is not difficult, as e-invoices also have direct economic benefits. Avoiding accounting errors is a direct financial gain, as any understandable human error is always a cost. But the business benefits of e-invoices go much further – as the experience of many Estonian companies confirms, e-invoices bring sales revenue faster because the e-invoice confirmation process at the recipient is much shorter.
Using e-invoices also helps avoid the company accidentally coming under the attention of the Tax and Customs Board (MTA). There are so many billing errors in Estonia that several officials at the MTA deal solely with contacting companies when the accounting data of the buyer and seller do not match. Such communication with the MTA is unnecessary additional hassle and time consumption. Another advantage of e-invoices is that e-invoices are essentially impossible to forge, which reduces the risk of invoice fraud that has recently increased in Estonia.
E-invoices are the new normal
Both accountants and organization leaders should consider that e-invoices are becoming the primary and perhaps even the sole method of invoicing for most transactions. The entire European Union is moving in this direction. For example, in Latvia, e-invoices will be mandatory starting next year.
In Estonia, a significant change is also imminent – until now, only the public sector could demand e-invoices from their suppliers, but starting from July 1, this legal right will be extended to everyone. It can be expected that many larger companies will start using this and e-invoicing will become a competitive advantage.
Additionally, the Tax and Customs Board plans to require the submission of all incoming invoices along with VAT declarations. Using e-invoices makes this reporting much simpler and faster. Moreover, e-invoices are free for micro-enterprises, and for larger volumes, the monthly service fee usually remains within a few euros, while the value of the time saved by checking invoices is tens of times greater.
Making small mistakes is human, but there is no reason to let them waste our time or money or damage our professional reputation. Especially since e-invoices, which help avoid many mistakes, are also beneficial to the financial health of the organization in many other ways.
The article was published in May 2025 on raamatupidaja.ee.
Photo: Meeli Küttim
