Invoice Digitization for Statutory Compliance (XML Conversion)
The invoice digitization process is becoming quite a common practice. It is important that statutory compliance is always complied with when using XML conversion. XML is a type of file that is used in a number of software platforms. XML is short for eXtensible Markup Language, and it contains important cross platform syntax that lets information be passed between different applications, operating systems, software, etc. XML conversion allows you to carry out data conversion and invoice digitization.
Compliance for data entry, data conversion, and digitization of invoices is important. The law requires transparency, integrity, and accountability in financial reporting and that includes invoice digitizing. Access levels need to be determined and documented within the company in rider to prevent faults in calculation, financial reports and increase efficiency. The digitalization of financial records starts with XML invoicing. European countries, such as Spain and Germany recently started to regulate the XML invoicing rules in order to be able to provide users with correct security measures and standards.
Electronic invoicing is accepted where the authenticity of origin and the integrity of the data of the invoice are guaranteed by another means other than the use of electronic signatures. Invoices have to be transmitted securely, they must maintain their integrity along with the authenticity of the content, and the invoice data must be stored is a safe and secure manner.
The backup of digital records are the encryption methods are determined by the law in many countries individually, however, the influence of European Union is visible in EU countries. The period to keep records is usually 6 years, and additional rules are created for digital signatures. Still, some companies make their own customized invoicing system based on XML applications, using a software development company. It is crucial that the invoices can be stored, printed in high-quality and sent to customers in a protected PDF format; something many companies offer within their digital invoicing packages. Faxing is another function that makes invoicing easier, and keeping records of the deadlines, sent dates and amounts electronically makes the work easier.
Many companies are turning to XML files so that the data is both highly accessible and versatile. XML is much easier and flexible than many other file types, and it has several advantages over a number of older formats. Most of the latest invoicing systems are built in XML, and are able to handle statistical and financial reporting capabilities, working together with the accounting department. XML is not only an easier way to send invoices, but also a good way to integrate finances with other business systems, such as ERP.
The number of companies looking to digitize their invoices along with other documents continues to grow. Invoice digitization change cost structures, reduces the necessary storage space, and streamlines invoice keeping.
Converting to XML for your invoice digitization can be time consuming and the rules might be confusing. As compliance is a great issue, it is better to hire an experienced development company that specializes in data conversion and digitization.
– Data Czar @ DEO
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