HMRC Compliance for Electronic Creation and Distribution of Invoices
The highgrove EDM solution provides a secure, fast and efficient invoice delivery service by email or web portal that complies with the HMRC rules on digital invoicing.
what is electronic invoicing
Digital invoicing is the transmission and storage of invoices, without the delivery of paper documents, by digital means. Digital equipment is used for the processing (including digital compression) and storage of data.
The HMRC guidelines state that businesses may invoice digitally where the authenticity of the origin and integrity of the invoice data are guaranteed. The guidelines are applicable to anyone who issues, or is intending to issue, VAT sales invoices digitally.
Compliance with the HMRC guidelines can be achieved through encryption techniques such as an “advanced electronic signature.” The HMRC definition of an advanced electronic signature is set out as follows:
- Uniquely linked to the signatory.
- Capable of identifying the signatory.
- Created using means that the signatory can maintain under his sole control.
- Linked to the data to which it relates in such a manner that any subsequent change to the data is detectable.
Using the highgrove solution guarantees the authenticity of the origin and the integrity of the invoice data by providing a full audit trail. An advanced electronic signature is used alongside other security to encrypt and protect invoices to achieve compliance with the electronic invoicing standards.
why digital invoicing?
Digital invoicing offers many advantages over sending traditional paper invoices by post.
HMRC states that digital invoicing offers many advantages over traditional paper invoices. The rapid transmission of documents in a secure environment may provide for:
- structured data for auditing
- improved traceability of orders
- decreased reliance on paper reducing storage and handling costs
- rapid access/retrieval
- improved cash flow
- security/easier dispute handling.
This list is not exhaustive but does indicate some of the principal benefits.
The costs of sending paper invoices include paper, printing, handling and postage. An invoice sent by 1st or 2nd class post is not guaranteed to arrive and will not be delivered securely. There are also environmental costs, and sending invoices digitally can substantially cut down on your paper use and reduce your carbon footprint.
Further Business benefits – enhanced productivity, economical and more rapid delivery
Costs involved in manually processing documents can be reduced significantly.
A typical traditional document delivery process involves manually printing and folding documents, inserting into envelopes, applying postage, and deliver into the appropriate location for mailing. All of this time-consuming and wasteful manual work can be eliminated, allowing staff to do more valuable and cost-effective work.
Automating digital document delivery significantly reduces the costs and number of human errors that can occur.
Reduce consumable costs
The cost of supplies such as ink, paper, and envelopes can be significantly reduced. Implementing our solution can reduce paper and printing costs by up to 80%. Most companies reduce their consumables costs by at least 50%
Decrease the use of pre-printed forms
The costs associated with printing, storing, and occasional obsolescence of pre-printed forms can be substantially reduced or eliminated. The highgrove EDM solution uses the most recent design templates available and only generates documents on demand, when they are needed.
Users can create a variety of documents – Invoices, statements, Reports, Forms, etc all from the system application for automatic and secure PDF creation and digital delivery and storage , without reprogramming the system application
how digital invoicing works
Invoices are transmitted or published to the web portal securely to ensure that only your intended recipient can read them.
The highgrove EDM solution provides a swift and proven complimentary package to any ERP or accounting system.
We receive text based files, XML, SAP RDI/ XSF and PDF files and :
- Convert them to e-signed PDF’s with the companies corporate format
- Automatically send them by e-mail according to variable data send from ERP/CRM system (i.e. e-mail address of the customer is automatically processed and e-mail is sent)
- Securely Archive and index e-signed copies in your archive for further collection follow-up
- Customer documentation is made available, where required, via a secure web portal
To find out how Highgrove can assist you and advise on what is possible for your organisation and accounts processes, please complete the request for information form below.