Are you prepared for the billing reform scheduled for 2026?

Many of our users relied on Excel—or even Word or InDesign, for the more adventurous—before discovering Furious to create their quotes and invoices.

However, beyond aesthetic considerations and the time spent on these tasks, the decision not to use dedicated invoicing software turns out to be a real mistake in the day-to-day management of your business.

In fact, an invoice issued without using approved software (whether it’s a standalone application or an ERP system like Furious) may be legally challenged. Furthermore, integrating an invoicing tool into your management system offers numerous benefits, and that is precisely what we will explain in detail.

To start with, invoicing software allows you to generate better reports and accurately track VAT. You can be sure that all legal and mandatory information is included on your documents, in accordance with the requirements of the Directorate General of Public Finances (DGFIP). This is especially important if your business is subject to VAT or if you conduct business with the public sector.

Software like Furious ensures that every invoice issued complies with current regulations by clearly displaying essential information such as the SIREN number, the issuer’s and recipient’s addresses, and details regarding the delivery or service provided.

When an invoice is issued, it must be transmitted via a digital invoicing platform approved by the DGFIP, thereby ensuring the secure transmission of transaction data. In 2023, the postponement of the effective date for the mandatory use of electronic invoicing between businesses was officially confirmed, which means that all businesses involved in invoicing must be prepared to issue their invoices in a structured format that complies with the DGFIP’s requirements.

In summary,using invoicing software is now a crucial part of your company’s administrative management. It ensures your documents are compliant, facilitates the transmission of essential data to the DGFIP, and saves you valuable time (throughthe automation of quotes and invoices). Don’t underestimate the importance of this step, and be sure to choose the best solution for your business so that you’re fully prepared for the widespread adoption of electronic invoicing.

*April 2024: Our software, Furious, has just had its NF203 certification renewed for the 2024–2025 period, with high praise from the certification body—a guarantee for our customers that we comply with the new standards for electronic invoicing. Our software is certified!

What is electronic invoicing, and why has it become essential?

Electronic invoicing involves sending and receiving invoices in digital format, enabling faster, more secure, and more environmentally friendly processing. It has become a key part of the business world, particularly with legislative changes that make it mandatory in many cases.

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  Modernity and efficiency: In an era where everything is moving faster, electronic invoicing helps you avoid wasting time on mailings and the risk of errors associated with manual data entry.
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  Enhanced security: Electronic invoices are often more secure than their paper counterparts, thanks to encryption and digital signature systems.
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  Simplified archiving: say goodbye to dusty file cabinets! Your invoices are stored digitally, making them easy to find and access whenever you need them.
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  Environmental Responsibility: By choosing electronic billing, you are helping to reduce paper use and lower your carbon footprint.

The Benefits of Electronic Invoicing for Businesses

The adoption of electronic invoicing is a driver of growth and security for businesses, regardless of their industry.

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  Cost savings: less paper, fewer mailings, fewer errors… Electronic invoicing leads to substantial savings.
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  Improved cash flow: Payments are often made more quickly with electronic invoices, thereby improving the company’s cash flow.
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  Compliance Guaranteed: With the growing requirement to switch to electronic invoicing, adopting this solution ensures your compliance with the latest regulations.
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  Optimized supplier and customer relationships: The clarity and speed of electronic transactions help build trust between you, your suppliers, and your customers.

Therefore, integrating electronic invoicing into your processes is not only a legal requirement, but also an opportunity to streamline your operations and enhance the security and efficiency of your business transactions.

The Requirement to Digitize Invoices: A Bonus

Through the 2020 and 2021 Finance Acts, the French government aims to accelerate its plan to modernize business operations (or e-invoicing) and the transmission of data to the tax authorities (or e-reporting). For example, some countries, such as Italy, are further ahead than we are in this area.

The requirement to digitize invoices will therefore take effect on July 1, 2024, for all B2B transactions.

Why?

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  Reduce treatment costs

The cost of processing invoices is significant, and the difference between the paper version (estimated at 10 euros) and the digital version (estimated at 1 euro) speaks for itself… #butstill

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  Simplify and improve the reliability of transactions / reduce payment processing times

It is also clear that going paperless makes it easier to ensure invoices are received correctly, simplifies communication between suppliers and customers, and speeds up the entire process. However, this requires that all stakeholders be able to issue and receive electronic invoices.

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  Strengthen the fight against VAT fraud, but also pre-fill your VAT returns. In short, improve traceability.
  
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  Strengthening the Competitiveness of French Companies

Are electronic invoices mandatory in France, and who is affected?

Since the announcement of the 2020 and 2021 Finance Acts, the French government has clearly demonstrated its commitment to accelerating the digitization of commercial transactions and data exchanges with the tax authorities. But has electronic invoicing now become mandatory for all businesses?

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  Requirement for all B2B transactions: Effective July 1, 2024, electronic invoicing will be mandatory for all business-to-business (B2B) transactions.
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  Who is affected? : All businesses, regardless of their size or industry, will be subject to this requirement. This includes small and medium-sized enterprises (SMEs), large companies, and sole proprietors.

The Impact of the Mandatory Electronic Invoicing Requirement on SMEs and Large Companies

The requirement to switch to electronic invoicing will have a significant impact on how businesses operate, particularly on small and medium-sized enterprises that have not yet made the transition to digital.

For small and medium-sized businesses:

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  Investment in appropriate tools: SMEs will need to invest in electronic invoicing solutions to ensure compliance.
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  Team Training: It will be necessary to train employees on how to use these new tools.
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  Optimization of internal processes: This is an opportunity to review and optimize internal processes related to billing.

For large companies:

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  Adapting existing systems: Large companies, which are often already equipped, will need to adapt their systems to comply with the new requirements.
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  Enhancing Security: The digitization of invoices requires a high level of security to protect sensitive data.

Key Dates for the Implementation of Mandatory Electronic Invoicing

The implementation of mandatory electronic invoicing will take place gradually, with key dates to keep in mind.

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  July 1, 2024: All businesses are required to accept electronic invoices.
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  July 1, 2024 – June 30, 2025: Large companies will be required to issue all their invoices electronically.
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  July 1, 2025 – June 30, 2026: Medium-sized companies will, in turn, be required to issue all their invoices electronically.
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  Effective July 1, 2026: This requirement will be extended to SMEs and micro-enterprises.

However, these are the dates that were originally planned. The implementation has been postponed and will be decided as part of the 2024 budget bill.

In summary, the transition to electronic invoicing is not only a legal requirement, but also an opportunity for businesses to modernize their practices, increase efficiency, and enhance the security of their commercial transactions. It is therefore crucial for every business to prepare for and adapt to these changes in order to remain competitive and compliant with the law.

What are the deadlines for compliance?

Laurent Chetcuti, a partner at KPMG, shared his expertise with dafMag.fr:

“Effective July 1, 2024, all businesses must be able to receive electronic invoices. As of that same date, large companies will be required to issue electronic invoices. This requirement will take effect on January 1, 2025, for mid-sized companies, and on January 1, 2026, for microbusinesses and small and medium-sized enterprises (SMEs). This refers to the legal structure of the individual company, not that of the corporate group.”

At that point, you’ll have two options:

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  Submit your invoices to accredited platforms
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  or submit them directly through the public billing portal, as Italian companies, for example, already do.

What should my invoices look like?

As you can see, the government—and, more broadly, the European Union—aims, through this directive, to standardize and structure invoices in order to enhance the consistency, security, and quality of the data continuously transmitted to the tax authorities.

Invoices issued and received must adhere to a specific format and include specific data in order to be processed automatically.

So goodbye to non-standard paper and PDF formats!

You will also need to report the following data to the tax authorities:

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  of your sales to foreign companies and/or individuals (both French and foreign)
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  from your purchases made from foreign companies.
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  the payment status of certain invoices issued, as well as their status.

What are the standards and formats that must be followed for electronic invoices?

To comply with the new legislation and ensure a smooth transition to electronic invoicing, it is essential to understand the standards and formats your invoices must follow.

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  UBL (Universal Business Language) format: This is a standardized format for electronic business documents, recommended by the European Union.
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  Factur-X: This is a Franco-German standard that allows electronic invoice data to be embedded in a PDF file, making it easier for both humans and machines to read.

Why these formats?

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  Interoperability: These standards enable better communication and data exchange between the various IT systems used by businesses and the tax authorities.
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  Automated Processing: These formats make it possible to process invoices automatically, thereby reducing errors and speeding up processing times.

Information to be provided:

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  Sales to foreign companies and individuals: You must report the details of these transactions.
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  Purchases from foreign companies: This information must also be reported.
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  Payment of certain invoices: You must submit the payment information and the status of the invoices.

In short, adopting the right formats and standards for your electronic invoices isn’t just a matter of compliance; it’s also a way to simplify and speed up your invoicing processes, while reducing the risk of errors. This is a crucial step in ensuring that your business is ready and equipped to meet the requirements of mandatory electronic invoicing.

What are the risks if I don’t comply?

It’s clear that electronic invoicing is an effective tool for combating prolonged payment delays, improving your working capital, and thereby avoiding bankruptcy. Today, outstanding financial debt in France is estimated at nearly 420 billion!

Those who fail to comply will be penalized: “For non-compliance with e-invoicing, they face a fine of 15 euros per invoice, capped at 15,000 euros per year. For non-compliance with e-reporting, the fine is 250 euros per submission, also capped at 15,000 euros per calendar year. But the main penalty, indirectly, is financial. If a company fails to submit an electronic invoice, it simply won’t get paid,” Laurent Chetcuti adds.

How do I prepare for it?

“No wind is favorable to those who do not know where they are going”

Take a fresh look at your tools and plan ahead when choosing a partner. While you’re at it, check out this TOP 10 list of pitfalls to avoid when migrating an ERP system. 😉

Furious automatically detects invoices to be issued, performs bank reconciliation, forecasts your cash flow for the next 12 months, communicates independently with your teams, and saves you time. Most importantly, it helps you stay compliant with upcoming regulations.

Furious is also, and above all, certified software for electronic invoicing (NF203 certification)

What are the steps to follow to implement electronic invoicing in your company?

Implementing electronic invoicing is a process that requires organization and precision. Here are the key steps to follow:

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  Assessment of Needs and Existing Resources: Analyze the tools and systems you currently use for billing.
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  Finding and Selecting an Electronic Invoicing Solution: Choose software that is tailored to the size and specific needs of your business.
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  Team Training: Make sure your employees are trained and comfortable with the new system.
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  System testing: Before fully switching to electronic billing, run tests to make sure everything is working properly.
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  Implementation: Once everything is ready and tested, roll out electronic invoicing company-wide.
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  Monitoring and adjustments: Monitor the process and make any necessary adjustments to ensure a smooth transition.

Electronic Invoicing Platform: How to Choose the Right Solution?

The market offers a wide variety of electronic invoicing solutions, and it is crucial to choose the one that best suits your business.

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  Ease of use: Choose a solution that’s intuitive and easy to learn.
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  Compliance with legislation: Ensure that the solution complies with applicable regulations and standards.
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  Integration with your other tools: The solution must be able to integrate easily with the other software you use.
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  Support and Assistance: Check the quality of the customer support offered by the provider.

In short, every change is an opportunity, and this reform gives you one more reason to choose an ERP system.

Contact us for a quick demo—it could change your life!

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