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Difference Between E-Invoice & Digital Invoice and It’s Impact on E-Commerce

by April 20, 2018

What is digital invoicing?

A digital invoice is an invoice that allows us to view and also process it digitally. The digital invoice is cool to record and also it can be connected to accounting software. Optical recognition (OCR) allows digital invoices to get reserved into the systems which lead to less pressure in work.

The online solutions help the digital invoice to the success of the business. The traditional invoice doesn’t support us in every means.


What is E-invoicing?

E-invoicing is an invoicing mode which streams out bills and information by a company to its clients by electronic communication. Usually, e-invoicing is also called e-billing, e-payables, and telecommunications billing.

An accurate e-invoice is an invoice that is received, issued and processed electronically. From the start till the end of the process the financial dealings are typically only by the digital means. Simply, the e-invoice is fully electronic throughout the business.

Some companies send PDF copies of invoices via e-mail. These can be scanned or printed out on paper and thereafter can be registered in the record. They offer the possibility to send PDF invoices via e-mail as a value-added service.

There are many companies that offer e-invoicing software and also some with their services. Common methods of e-invoicing are as follows,

  • Billing by email.
  • Customer service providers (CSPs) that allow a business to invoice numerous clients electronically.
  • Bank aggregators that consent consumers and businesses to pay bills by Electronic Funds Transfer (EFT).

Impact On E-commerce

The cumulative recognition of e-commerce by customers and the business public, as well as rising concern for security and the environment, has enhanced the swing to e-invoicing in recent years. In spite of its security advantages linked with sending bills and checks by mail, a doubt of e-commerce conquers among some individuals and businesses because of the possible hacking.

In fact, the majority of large companies are already using e-billing, especially in the business-to-business (B2B) environment.

As people become more relaxed doing business over the internet, the statistics will propagate even sophisticated.

Some of the advantages are,

  • Easier to achieve a supreme automation with factual e-invoices than with PDF invoices.
  • No automatic confirmation for the sender that the PDF invoice has been received by the recipient.
  • PDF invoices can be blocked by the recipient’s spam filters.
  • The PDF invoices by email are not accepted by many reputed companies. The recipient needs to scan to read the PDF invoices automatically.
  • Significantly less information is interpreted with scanning than when invoices are fully electronic.
  • Studies display that the chance of a scanned invoice being understood without errors is nearly 34%, which suggests laborious fault processing.


What is a digital invoice, but not an e-invoice?

  • Unstructured invoice data issued in PDF or Word formats;
  • Scanned paper invoices.


The following guidelines apply to e-invoices:

  • Structured invoice data issued in Electronic Data Interchange (EDI) or XML formats;
  • Structured invoice data issued using standard Internet-based web forms.

So, there is definitely a difference between e-invoice and digital-invoice. But, both of them serve similar advantages in e-commerce.

  • Freelance bookkeeping
  • Contractor accountants
  • Small business accounting
  • Tax accountant
  • Accounting firms