Check out these 23 invoicing applications that may just help you out!

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Originally posted at: http://cot.ag/bfeBBZ / http://www.greenerbilling.com/blog/2010/05/clueless-10-things-your-business-simply-cant-miss/

Every dollar counts. This is more than a mere fact in any business, big or small. There are days when everything was inked ledger. With modern technology comes innovative ways of making invoices and estimates. It’s always about the fastest solution that gets you paid in a fraction of a second. In other words, it’s all about CONVENIENCE.

Time is essential for business owners and having a better way of getting cash from customers is always a never-ending struggle. Grandma might have dealt with time-consuming ways of doing invoices. Aren’t you lucky you don’t need to suffer the same fate? Now, you have more options of creating, sending, and tracking invoices – if only you know what features to look for. They are listed here.What Should Online Invoicing Provide?
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1. E-mail Reminders
Choose a solution that helps you keep track of your payment schedule and customer invoices by sending you a notice through e-mail. You need an option to send alerts to your customers before their invoice is due, and remind them when their invoices are past due. Customers also need an email verification when you receive their payment and YOU need to know when you are paid!
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2. Automatic Invoicing
If there are clients who need recurring invoices, be sure your online invoicing solution allows you to set your e-Bill to autopilot. Set it and forget it!
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3. Customized Invoices

Your online invoicing needs to allow your personal touch to your invoice, e.g. your company logo, payment terms, thank you note. Look for a solution that lets you give discounts to your customers, show images of your products or services, and gives you the correct tax type for your region (i.e. Sales Tax, VAT, GST).
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4. Merging Estimates
Look for an online invoicing solution that lets you change an existing estimate into an instant invoice. It saves you precious time.

5. Compatibility
Choose an online invoicing solution that runs on any platform – PC, Mac, the Web, or even a handheld smartphone. Make sure it can work with your existing data. It’s all about integration, less work and faster pay!

6. Handy Format
Your customers may want to download their invoices and estimates in PDF, or view them online in HTML format.

7. Accepts Online Payment
When more business is done online, it is only logical to have a solution that accepts payment on the web, like having a gateway such as Paypal that accepts instant payments from customers.

8. Security
The most important feature that online invoicing provides to its users is SECURITY. Be sure that the online invoicing solution you choose protects all data with the latest of SSL technology, and that backups are done FREQUENTLY.
9. Great Customer Service
Look for a service that has a 24/7 support group which you can contact for help worldwide. Get that timely, professional and friendly response when, where, and how you need it. Make sure they are accessible!

10. Good Reputation
When you are investing your time and money in a solution that will help you manage your business finances, be sure to do your homework. Being the cheapest, the biggest, or the oldest does not automatically signal being the best. You build your business on a good reputation. Find online invoicing solutions that do the same.

Ergo: Think of Your Needs First! Always choose the best solution to help you manage your finances. Survey says that 60% of business owners have cash flow issues. This means you need something user-friendly, faster, safe, and efficient when it comes to getting an online invoicing solution that will work for you. You should spend more time on growing your business, not on a mountain of invoices. Get Smart!

These include the European Commission Recommendation 1994/820/EC, the European Directive 1999/93/EC and the European Directive 2001/115/EC. These standards have served the dual purposes of facilitating VAT administration on the one hand and fostering e-commerce on the other.

What Is The Importance Of E-Invoicing VAT Transactions In E-Commerce?
The invoice of a commercial transaction is one of the most important documents in any business. The invoice must conform to accounting, tax, business and even linguistic rules. Guidelines governing indirect taxes such as VAT that are levied on the basis of a commercial transaction specifically provide rules for authenticity of origin of an invoice as well as the integrity of its content. The invoice is also necessary in order for the recipient to claim a VAT refund. With the transformation of conventional business into e-business, all member states have individually tried to regulate the complex legal issue of invoicing. These disparate efforts resulted in a disruption of the smooth functioning of the Internal Market.

The Commission launched a multi-annual project “Simpler Legislation for the Internal Market” (SLIM) in 1996 to streamline key Internal Market Legislation. The Commission’s report on the SLIM initiative was approved by the Internal Market Council on November 27, 1997. This report includes a commitment to study “the details considered necessary for drawing up an invoice for VAT purposes and the legal and technical requirements for electronic invoicing”.CEN, the European Committee for Standardization or Comité Européen de Normalisation, was founded in 1961 with twenty nine national members to develop voluntary European standards and to foster the European economy in global trading.

In 2003, at the request of the European Commission, CEN set up an open “E-Invoicing Focus Group” and issued a report analyzing the requirements on standardization issues relating to electronic invoicing resulting from the new VAT legal framework. The Council Directive 2001/1115/EC recognizes the legal validity of electronic invoices for VAT purposes and specifies the related, required, technical conditions.

What Is The European Commission Recommendation 1994/820/EC.?
The Commission Recommendation was developed at the request of the European Trade and Industry Electronic Data Interchange (EDI) user groups to provide the required legality, acceptability and security in the use of EDI in European member states. The Recommendation includes the Model European Interchange Agreement that was developed in line with the work carried out by the International Chamber of Commerce and several major industry sectors, including the automotive, electronics, retail and distribution sectors.

Trading partners were advised to agree and sign interchange agreements based on the European model prior to commencing the exchange of EDI messages. The Recommendation specifically deals with the definition of EDI, EDI messages, essential characteristics of EDI messages, security of EDI messages, admissibility of evidence regarding EDI messages, storage of EDI messages, EDI standards, applicable laws and security measures when using EDI.

Article 2 of the Commission Recommendation also provides for alternative provisions for accepting electronic invoices when they are sent by EDI, and the agreement then provides for the use of procedures guaranteeing authenticity of origin and integrity of contents. The Recommendation deals with the legal status of EDI by mandating that EDI is admissible in a member state to the extent permitted by national law.

How Did Directive 1999/93/EC Contribute To The Development Of E-Invoicing?
The European Parliament and Council issued Directive 1999/93/EC on Community Framework for Electronic Signatures. The Directive introduced a legal framework to guarantee EU-wide recognition of electronic signatures. This Directive recognizes the importance of the electronic signature as a prerequisite for e-invoicing and security of data transmitted electronically.

The purpose of the Electronic Signature Directive is to facilitate the use of electronic signatures in e-invoicing and to contribute to their legal recognition. It establishes a general framework for electronic signatures and certain certification services to ensure the proper functioning of the internal market. Electronic signatures are also considered important as they facilitate the wide use of e-invoicing. Apart from its commercial value, the invoice is an accounting document, it has legal implications to both transacting parties and it is the basis for VAT declaration and reclamation, statistics declaration for intra-community trade and export and import declaration for extra-community trade.

How Has Directive 2001/115/EC Enabled E-Invoicing For VAT?
European Directive 2001/115/EC specifically deals with e-invoicing. It clarifies the implementation of e-invoicing and aims to introduce harmonized procedures for paper as well as e-invoicing across all member states. The Directive outlines the liability of taxable persons and their service providers for the integrity of content and authenticity of origin of electronic invoices for VAT purposes. This relates mainly to the invoices exchanged electronically and to the storage of invoices.

Under the Directive, no member state can refuse the invoice of goods or services sent by electronic means provided that the authenticity of the origin and integrity of the contents are guaranteed by means of an advanced electronic signature (AES), or by means of EDI as defined in Commission recommendations. Member states may, however, require the advanced electronic signature to be based on a qualified certificate. Invoices may also be sent by other electronic means subject to acceptance by the member state(s) concerned.

Although the EDI invoice message has been adopted by several industry and trade sectors in Europe, it has not been implemented to its full potential. Paper invoices have been maintained to overcome difficulties surrounding VAT regulation. Several member states introduced special procedures to allow EDI paperless invoicing but still require companies to apply for permission from the tax administration and in some cases to exchange summary VAT control messages, electronically or on paper. For cross-border electronic invoicing, companies are exchanging electronic invoices for company administration application, but are forced to parallel the exchanges with paper invoices to meet member state VAT requirements.

Source: ibls.com

As of this week, senders of Digitale Nota who are serviced by Billington, can also reach their customers who are using the Postbank internet banking environment (mijnPostbank.nl). By connecting ING with the 3 main Biller Service Providers, the Digitale Nota is now fully operational and there is no reason anymore not to realize a full scale roll-out of the Digitale Nota. The number of senders is now expected to grow rapidly.

“Because of this milestone, we expect that organizations will make the step towards implementing the Digitale Nota and offer it to their customers very soon. The market will grow exponentially and competition will be fierce. But Billington, being a 100% subsidiary of ING, is ready for this”, says Job van Luyken, Managing Director of Billington.

For more information: www.billington.nl

Already in 2006 a study was conducted on attitudes towards electronic invoicing by managers in SME’s. In this study several existing models have been presented from which a new model specifically usable for e-invoicing has been derived and tested.

This study was carried out as there was no set framework made available for studying and determining the attitudes towards adoption of electronic invoicing.

Existing models on e-invoicing

The study presents several existing models on IT adoption that could supply elements for an adoption model on e-invoicing:

- the Technology Acceptance Model

- the Theory of Reasoned Action

- the Theory of Planned Behaviour

- the Technology-Organisation-Environment Framework

- the Theory of Innovation Diffusion

Technology Acceptance Model

The Technology Acceptance Model (TAM) was introduced in 1989 as a tool to predict acceptance of information technology. It has since then been widely used and validated.

The model states that adoption of information technology is dependent on the perceived ease of use and the perceived usefulness of the technology by the user. Recent research has extended the model to include factors such as perceived system quality, performance and prior use. Social norms and prior performance showed to have an influence on technology adoption. The Technology Acceptance Model (TAM) graphically looks like this:

  
The draw back of the Technology Acceptance Model (TAM) is that is has mainly been developed and used to predict adoption of new technology by individuals, not so much by organisations. Another draw back is that adoption more recent information technology innovations like the Internet and Web2.0 can only be partially explained using the Technology Acceptance Model (TAM).

The Theory of Reasoned Action and the Theory of Planned Behaviour

The Theory of Reasoned Action and the Theory of Planned Behaviour are well-known theories of intention and have been used with success in many different settings. Both theories suggest that behaviour can be predicted according to the intentions of the person in question. The intentions are in turn influenced by the person’s attitude (favourable or unfavourable evaluation) and subjective norm (perceived social pressure to perform) towards the behaviour.

The Theory of Reasoned Action using an individual’s attitude and his/her subjective norm towards the behaviour to predict intentions. It has for example been used to examine user acceptance of computer technology. the Theory of Planned Behaviour ads something called ‘perceived behavioural control’ (PBC). ‘Perceived behavioural control’ involves the influence of past experiences as well as anticipated barriers and has proven to be useful in predicting managerial behaviour in regards to adoption of new information technology.

 
The drawback of both these theories, just like the Technology Acceptance Model (TAM), is that is has mainly been developed and used to predict adoption of new technology by individuals, not so much by organisations. So in order to use these models on e-invoicing, they need to be complemented by elements from another theory.

The Technology-Organisation-Environment Framework

The Technology-Organisation-Environment Framework focuses on organisations. It identifies three aspects of an organisation’s context that influences the adoption and implementation of an innovation: technological, organizational and environmental context.

The technological context involves the internal and external technologies that are relevant to the firm. The organizational context involves the size of the firm, centralization,formalization and complexity of managerial structure, the quality of its human resources and the availability of internal slack resources. The environmental context entails the environment in which the firm is doing business i.e. industry, competitors, resources, and government.

The Theory of Innovation Diffusion

The Theory of Innovation Diffusion is becoming increasingly popular for studying the use and adoption of information technologies. It provides tools to assess adoption and identifies factors hat facilitate or inhibit technology adoption and implementation. For instance the factors facilitating or hindering adoption of technology that can be identified by diffusion innovation theory include characteristics of the technology, characteristics of adopters, how adopters hear about the technology and how they are persuaded to adopt.

The result: a combined theory on the adoption of e-invoicing

So what happens if you put the best this theories together for the purpose of e-invoicing adoption? You get something like this:

 And after having conducted a statistical regression analysis this is what you get:

Concluding remarks

What can be said about adoption of e-invoicing? First of all just look at pages 62 to 66 of the study posted above to learn the results and conclusion of this interesting study.

Apart from that, this study shows that in order to enhance the adoption of e-invoicing across SME’s their tend to be several factors that have an impact on the perceived usefulness and perceived ease of use on e-invoicing. Mind you, this impact can be a positive one but also a negative one.

For instance to much an emphasis on ‘banks’ on the one hand and ‘providers’ on the other hand could have a negative impact on the ‘environmental factor’ score. Therefore having a direct impact on the intention to use/adopt e-invoicing.

Whereas statements that providers are making e-invoicing too complex ‘only’ has an impact on the technical factor. Which negative effect is being flattened through perceived usefulness, perceived ease of use and lastly: the intention to use/adopt e-invoicing.

Broadband access is increasing
 
In the EU27, 93% of enterprises of ten or more persons employed had access to the internet in January 2008, the same as in January 2007, and 81% of enterprises had a broadband internet connection, up from 77% in January 2007. On average in the EU27, 64% of enterprises had a website in January 2008, compared with 63% in January 2007. These data2 come from Eurostat, the Statistical Office of the European Communities, and form part of the results of a community survey conducted at the beginning of 2008 on Information and Communication Technologies (ICT) in enterprises in the EU27 Member States, Iceland and Norway. Besides the indicators presented, the survey also covers e-commerce, e-government and e-business indicators.

Almost all enterprises in the Netherlands and Finland have internet access
In January 2008, the highest proportions of enterprises with internet access in the EU27 were recorded in the Netherlands and Finland (both 99%), Denmark (98%) and Belgium, Austria and Slovenia (97% each). The percentage was less than 90% in only five Member States: Romania (67%), Bulgaria (83%), Hungary (86%), Latvia (88%) and Cyprus (89%).
 
The proportion of enterprises with a broadband connection in January 2008 was above 90% in Spain, France and Finland (92% each) and in Belgium (91%). Only in Romania (44%), Lithuania (56%) and Poland (59%) did less than 60% of enterprises have a broadband connection.
 
The data show that while internet access appears to be approaching saturation in nearly all Member States, the level of broadband internet access is still increasing.

Below you can view the outcome of the survey:

 
Source: Eurostat

Nearly 30% of individuals use internet banking, 60% of households have internet access.
In the EU27, 60% of households had access to the internet during the first quarter of 2008, compared with 54% during the first quarter of 2007, and 48% had a broadband internet connection, compared with 42% in 2007.
 
These data published by Eurostat, the Statistical Office of the European Communities, represent only a small part of the results of a survey on Information and Communication Technologies (ICT) usage in households and by individuals in the EU27 Member States plus Norway, Iceland and Croatia. As well as internet use and broadband connections, the survey also covers other indicators such as e-shopping, e-government and advanced communication and content related services.
 
Household internet access ranges from 25% in Bulgaria to 86% in the Netherlands
In 2008, the proportion of households with internet access was three quarters or more in the Netherlands (86%), Sweden (84%), Denmark (82%), Luxembourg (80%) and Germany (75%). The lowest levels were registered in Bulgaria (25%), Romania (30%) and Greece (31%).
The proportion of households with a broadband connection in 2008 was also highest in the Netherlands and Denmark (both 74%) and Sweden (71%).
 
One third of individuals in the EU27 use travel related internet services
In the second quarter of 2008, individuals aged 16-74 in the EU Member States were asked which activities they had carried out on the internet in the previous three months. In the EU27, nearly a third of all individuals had used internet for travel and accommodation services. Around 30% had used internet banking, interacted with public authorities or searched for health-related information. About a quarter had read online news or ordered goods or services. Around 15% had looked for jobs or sent applications by internet.
The Member States which had the highest proportions of individuals performing these internet activities were the Netherlands, Denmark, Finland, Sweden and Luxembourg.

Here you are able to view the entire data overview per country:
Source: Eurostat

The Plan Avanza has mobilised € 1800 million in 2006-2008 to facilitate the introduction of new technologies in Spanish SMEs. David Cierco, Director General for Development of the Information Society within the Spanish Ministry of Industry, Tourism and Trade unveiled this information on the occasion of the presentation of the Prointur project (Profesionalización del Turismo de Interior), a project funded under the Plan Avanza.
 
The programme ‘Avanza SMEs’ of Plan Avanza endeavours to increase the ICT level of adoption by SMEs through the introduction of sectoral solutions and eBusiness, including the introduction of eInvoicing. The implementation of these measures has been done through calls for aid, agreements with regional governments and ICT loans.

Avanza SME has several lines of action:

- outreach programmes to expand the use of the Internet and new technologies;
- provision of technological advice;
- training and awareness-raising on the efficient use of ICT;
- implementation of projects and actions to develop and adopt business solutions;
- preparation of studies and analysis;
- programmes for content creation;
- provision of computer equipment.

Mr. Cierco reminded the audience that the new plan Avanza2, “the normal evolution of the Plan Avanza,” pursues qualitative and specific objectives, through five areas of action: infrastructure, security and trust, technological training, digital content and services and industrial development.

Prointur is a project of the foundation Fundetec whose aim is to promote the use of Information Technologies and Communication Technologies (ICT) within the internal and rural tourism accommodation sector, as an instrument to professionalize the business management while increasing the activity. The initiative is funded jointly by Fundetec, the Ministry of Industry, Tourism and Trade – through the Plan Avanza – and the European Union.

Source: www.epractice.eu

Further information: Spanish Ministry of Industry, Tourism and Trade

According to Statistics Estonia, in January 2008 four out of ten enterprises with Internet connection had received e-invoices, three out of ten had sent out e-invoices. In the previous year the corresponding indicators were two out of ten and one out of ten.

ID-card was used by four out of ten enterprises with Internet connection. ID card was used mostly for giving digital signature and for authorising users in information systems. The most active users of ID-card were the enterprises of financial intermediation; two thirds of them used ID-card.

The general trend of reducing the paperwork has increased the interest of public authorities in websites. The enterprises download more and more forms and return them via Internet. Over three quarters of enterprises downloaded forms and two thirds returned them via Internet. Two thirds of enterprises had their own websites.

In January 2008, 97% of enterprises used computers; 99% of them had also access to the Internet. These indicators have not changed much during the last five years. As before, most of the enterprises needed the Internet for banking and financial services; fewer enterprises used the Internet for training and education purposes. The most popular type of Internet connection was DSL broadband connection, used by three quarters of enterprises. Other types of broadband connection, such as cable TV, leased lines, etc., were used by two out of ten enterprises. Non-broadband connections (dial up, ISDN, mobile Internet) were used less and often in combination with broadband connection.

Statistics Estonia has surveyed the use of information technology in enterprises since 2001. In 2008 3,500 enterprises participated in the survey. The survey involves enterprises with 10 and more employees. The usage of information technology in enterprises is studied by statistical organisations in all European Union Member States on the basis of harmonised methodology.

Source: Stat