E-invoicing and open banking: this is how accounting and ERP software providers optimize their solutions
From January 1, 2025, companies will be facing a decisive change: e-invoicing will become mandatory in the B2B sector in Germany. E-invoicing is a central component of the digitalization of accounting processes. At the same time, open banking offers additional opportunities to make accounting and payment processes more efficient. In this article, providers of accounting and ERP software will find the most important information on e-invoicing and learn how they can further optimize their solutions through open banking.
Automated invoicing processes for greater efficiency through the introduction of e-invoicing
The e-invoice is a digital invoice in a structured, machine-readable format such as XRechnung or ZUGFeRD, which will be mandatory for the B2B sector in Germany from January 1, 2025. In contrast to paper or PDF invoices, which have to be processed manually, the e-invoice enables direct, automatic processing. This saves companies time, reduces sources of error and optimizes their accounting processes.
Additional optimization through Open Banking: Automated payment processes
In addition to the introduction of e-invoices, accounting and ERP software providers can further develop their solutions by integrating open banking technologies. Open banking enables a direct connection of bank accounts to the accounting software, which significantly simplifies payment reconciliation and the processing of transactions.
With finAPI’s banking interface, companies can connect accounts at around 5,000 European banks in currently eleven countries, including almost all banks in Germany and Austria. finAPI uses the XS2A interface, the regulated interface for account connection in accordance with PSD2, to connect payment accounts. Where the XS2A interface is not available, finAPI uses FinTS or scraping technologies to integrate other accounts such as savings accounts, credit card accounts and custody accounts. In addition, finAPI enables the connection of PayPal. This opens up the possibility of integrating account data and payments efficiently and automatically into accounting processes.
Versatile account-to-account payments for companies
finAPI enables companies to make account-to-account payments such as SEPA direct debits, SEPA credit transfers, instant payments, collective direct debits, collective credit transfers, standing orders and scheduled credit transfers. QR codes with payment links can also be created. These options can be integrated into accounting and ERP software, as well as e-commerce online stores, to provide customers the flexibility and convenience of paying via their bank account.
Advantages of combining e-invoicing and Open Banking
The combination of e-invoicing and open banking boosts the automation of accounting processes and brings numerous advantages:
- Time savings: By automating invoicing and payment processes, companies can work faster and more efficiently.
- Error reduction: Manual input errors are minimized.
- Improved liquidity: Instant payments and automated payment reconciliation improve the overview of payment flows and accelerate cash flow.
- Cost savings: The use of digital solutions reduces paper, printing and postage costs. And bookkeeping becomes leaner and more efficient.
- Versatile: The integration of account-to-account payments enables flexible and convenient payment processing in accounting and e-commerce.
How accounting and ERP software providers benefit
By integrating both e- invoicing and open banking into their solutions, providers of accounting and ERP software offer their customers decisive added value. They can help companies not only to meet the legal requirements for e-invoicing, but also to optimize and further digitalize their payment processes. This strengthens competitiveness and offers long-term benefits for the users of their software.
Key takeaway: The future of accounting is digital
The introduction of e-invoicing and the integration of open banking open up enormous opportunities for accounting and ERP software providers. Those who implement these technologies early on offer their customers a comprehensive and future-proof solution for the automation of accounting and payment processes and can position themselves as innovative market leaders.
Take your chance to make your software fit for the future with Open Banking.
Our experts support you in expanding your solutions in the best possible way.