What Are Incoming Invoices?
Incoming invoices are bills that a company receives from suppliers or service providers—that is, invoices coming from outside that need to be paid. They document goods delivered or services rendered and typically include details about the product or service, payment sum, invoice date, due date, VAT ID, and invoice number.
To draw a clear distinction: While an outgoing invoice is issued by a company to its customers, the incoming invoice represents a financial obligation toward a third party and is to be treated as a liability in accounting terms.
Why Is Digitizing Incoming Invoices Important?
Manual processing of incoming invoices is not only time-consuming but also error-prone. Often, invoices are received in paper form or as PDF attachments via email. They then need to be printed, reviewed, forwarded, filed, and manually entered into accounting systems. This consumes time and resources while increasing the risk of errors. In the worst case, deadlines are missed or duplicate payments are processed.
Digitizing this entire process—from invoice receipt to archiving– delivers numerous benefits.
How Can Incoming Invoices Be Digitized?
Digitized invoice processing typically follows a series of clearly defined steps:
The invoice is received, for example via email, web portal, or as a structured e-invoice.
The contents are automatically extracted using OCR (optical character recognition).
The data is checked for completeness, duplicates, or mandatory tax information.
A digital workflow forwards the invoice to the relevant departments for approval.
The approved invoice is posted in the ERP system.
Payment is made on time.
The invoice is archived in an audit-proof manner.
The key to this process is the so-called electronic invoice: a structured, machine-readable data record that can be processed fully automaticallywithout any media disruption.
💡 Tip: Starting in 2025, e-invoicing will be mandatory in B2B transactions in Germany. Early adopters will be well ahead of the curve when it comes to the mandatory introduction and can already benefit from noticeable efficiency gains today.
Why It’s Worth It
The benefits speak for themselves. Automated processes save companies time and money. Potential errors are minimized, cash discount deadlines are easier to meet, and compliance becomes much simpler. In addition, businesses gain better transparency regarding the status of all incoming invoices as well as audit-proof archiving.
Modern invoice processing makes companies more agile, transparent, and efficient—a true competitive advantage, especially in times of talent shortages and cost pressure.
Regulatory Requirements
The legal framework is clear: Companies must ensure that digital records are archived in an audit-proof manner and remain traceable at all times. The GoBD (Principles for the Proper Management and Storage of Books, Records, and Documents in Electronic Form as well as for Data Access) set out clear requirements:
- Records must be stored in a tamper-proof way
- Access rights and audit trails must be documented
A formal process description is mandatory
With a modern digital solution, these requirements can not only be met more easily, but can also be centrally managed and made audit-ready.
endless possibilities.
ExB is an Intelligent Document Processing platform that transforms unstructured data from any type of document into structured results. Our AI-based software can not only extract all relevant information from your documents, but also understand them. This allows you to automate your processes and save both time & money, while improving your customer experience and employee satisfaction. Win-win.
Implementation: Challenges and Tips
Switching to digital processes isn’t always straightforward. Various invoice formats, end-to-end digital processing, and the integration of existing systems pose technical and organizational challenges for companies.
A clear plan is important: Start by analyzing your current processes. Then, define goals, select the right software solutions, and roll out pilot projects. Don’t underestimate the importance of employee training—it’s crucial to the success of any digital transformation.
Conclusion
Digitizing incoming invoices has moved far beyond being optional—it’s a business necessity. It lays the foundation for streamlined, transparent, and future-proof processes.
Companies that make this transformative move today benefit twice over: through immediate resource savings and long-term digital resilience. Digitizing incoming invoices not only lightens the load on the accounting department, but is also a strategic shift toward smarter business management.
In short: Less effort, more control—and a clear competitive edge.
ExB supports companies in taking this step successfully–with intelligent document processing that not only recognizes text, but also understands context. Thanks to AI-powered solutions, you can automate your invoice processing from start to finish—and free up time for what really matters.
