In the age of digitalization, which not only significantly revolutionizes the way companies work but also fundamentally reshapes their financial transactions, electronic invoicing is increasingly becoming a central element of modern business practices. In this context, the so-called Central User Guide Forum for Electronic Invoicing in Germany (ZUGFeRD) plays a particularly important key role.
What is ZUGFeRD?
The innovative ZUGFeRD format transforms conventional invoice processing by adding an embedded invoice file in XML format to the traditional PDF document. This hybrid structure enables standardized data extraction for crucial information such as invoice amount and number. This data can be seamlessly integrated into downstream processes and, in the long term, ZUGFeRD aims to replace the previous OCR recognition in order to consistently promote the processing of invoice data without media discontinuity.
The foundation of the ZUGFeRD data format on the EU Directive 2014/55/EU for electronic invoicing and the EN16931 standard and its consideration of Cross-Industry-Invoice (CII) from UN/CEFACT and the ISO standard 19005-3:2012 (PDF/A-3) ensure that the format complies with international standards for cross-border invoice exchange. The future of invoicing therefore lies in the introduction of a format such as ZUGFeRD.
Advantages of ZUGFeRD
The ongoing digitalization is not only transforming how companies operate but also reshaping the way financial transactions are handled. Sending e-invoices via email in PDF format undoubtedly offers significant advantages. However, experience shows that over 80% of small and medium-sized enterprises tend to print incoming e-invoices and continue processing them manually on paper — a practice that is not only costly but also non-compliant with legal regulations. At the heart of this issue lies the solution: the adoption of a standardized format such as ZUGFeRD.
This enables system-independent further processing, while at the same time also ensuring simple visualization and additionally offering numerous other advantages.
1. Efficient invoice dispatch:
Traditional archiving of paper invoices requires space and is prone to manual errors. ZUGFeRD enables electronic archiving, which not only saves space, but also enables efficient searching and management.
2. Electronic archiving:
Traditional archiving of paper invoices requires space and is prone to manual errors. ZUGFeRD enables electronic archiving, which not only saves space, but also enables efficient searching and management.
3. Accelerated payment receipt:
ZUGFeRD invoices not only make payment easier for customers, but also speed up the receipt of payments for companies. This leads to improved liquidity thanks to shorter payment periods.
4. Meet customer requirements:
Customers increasingly expect to be able to process invoices electronically. By using ZUGFeRD, you can fulfill this customer request and offer flexibility for electronic processing.
5. Efficient invoice processing for recipients:
Manual processing of incoming invoices is error-prone and time-consuming. ZUGFeRD enables fully automated and error-free filing, speeds up the approval process and makes it easier to meet discount deadlines for more efficient invoice processing.
Invoice Processing with natif.ai
The processing of invoices in our system allows users to receive the output either in our proprietary invoice extraction format or in the standardized ZUGFeRD format. The main advantage lies in the fact that software supporting ZUGFeRD can read the information directly without requiring additional integration.
However, it is important to note that ZUGFeRD is expected to become a standard requirement in the future. In this context, we offer the option to easily convert invoices into the ZUGFeRD format.
This service enables companies to benefit from the advantages of the ZUGFeRD standard without having to build extensive new integrations. By using our platform, invoices can be efficiently converted into the ZUGFeRD format to meet future requirements.
