July brings a new phase to accounting in Estonia

As of 1 July all state companies and agencies only accept e-invoices. Transfer to e-invoices is not just an obligation for a private company, but also an option to make your accounting more effective and save a considerable amount of time.
 
According to Omniva Head of Finance and member of the board Jaan Sildam, it is about time to transfer to e-invoices. “Compared to the rest of Europe, the financial accounting in Estonia, the e-state, is far behind. I believe that with transfer to e-invoices, we significantly increase the effectiveness of the work of accountants, because now they can create more value in other work segments instead of entering the pdf invoices,” said Sildam, according to whom e-invoices have been part of normal work practice in Denmark for 15 years.
 
According to Sildam, complete transfer to e-invoices also means considerably better overview of the company’s situation. “Since the invoice movement and processing procedures are much faster in case of e-invoices, the reports and conclusions will also be prepared more quickly and this gives the managers a more precise view of how the company is doing,” Sildam adds.
 
Sirje Laigu, the business controller at Eesti Teed also confirms that e-invoices are useful. “We have been using e-invoices since 2016 and ever since then our people no longer have to deal with entering invoices. In case of clients who cannot send e-invoices, Omniva digitises their invoices for us (makes the pdf invoice into e-invoice) and from there on the invoice moves and is processed only digitally. There are virtually no human errors or typos anymore,” Laigu said.
 
If all companies sent e-invoices, there would be no more concerns with missing or lost invoices that wander around in people’s mailboxes and reach the finance system too late, if at all, Laigu adds. “With e-invoices, it is always guaranteed that the invoice will reach the partner. Additionally, we can track the history of invoices and see when someone received it. This also allows to pay the invoices in time,” Laigu adds.
 
 

What to do to transfer to e-invoices?

 
Medium or/and large company - Join an e-invoice operator
 
With medium and large companies, and those using accounting software, it makes sense to join an operator directly to start with e-invoicing. There are three operators: Omniva, Telema and Fitek.
 
Omniva e-invoicing environment is interfaced with nearly 35 different kinds of accounting software and other e-invoice operators. Invoices can be forwarded directly from your software or import the data from Excel if your company accounting is done there. It is also possible to prepare the invoice in the system. The invoice centre has 10 years of experience and more than 30,000 users.
 
Small company – Use e-Financials
 
Small companies that issue 5-10 invoices and do not use accounting software get to use the free e-financing system e-Financials developed by the state. It is essentially simple web-based accounting software that helps to conveniently organise accounting for a (small) company.
 
To join e-Financials, log into to the company registration portal (https://ettevotjaportaal.rik.ee) and submit an application for sending e-invoices via e-Financials (which is a part of the company registration portal). You can prepare invoices, choose recipients and issue invoices in the same environment.
 
You can read more about the myths and reality regarding e-invoices from the Omniva invoice centre blog.