In the Philippines, businesses – whether small or large scale industries, processing is still done manually. While most European countries have already taken steps in the adaptation of e-invoicing, in the Asia Pacific region, particularly in the Philippines, it is still quite relatively new.
However, the government’s introduction of the Digital Transformation Strategy 2022 changes that. The goal is to adapt and integrate an eGovernment system by 2022 which allows a transparent and responsive online public service, including adopting e-invoicing.
Just recently JAV Technologies Incorporated, an e-invoicing company based locally, has entered into a partnership with CloudTrade to further strengthen and establish e-invoicing in the Philippines and in the Asia Pacific region. CloudTrade is the revolutionary cloud based e-invoicing and e-commerce service provider and is one of the world’s fastest growing e-invoice and e-document networks, connecting hundreds of global organizations to thousands of their trading partners electronically across numerous sectors and regions. The partnership enables finance teams, using e-documentation solutions from CloudTrade, to enhance their payment compliance processes, secure against invoice fraud, automate their data acquisition and entry, and reduce the risk and cost of late payment fines.
Under the said partnership, JavTech will oversee CloudTrade’s clients in the Philippines. With the latter being the leader in document automation with over 500+ clients globally, the partnership will significantly give the boost that e-invoicing urgently needs. Businesses such as manufacturing, retail, logistics which are big in the Philippines, can benefit most from the partnership.
This is a big leap from the manual processing currently done by almost all government agencies and other private companies. Not only will it allow faster and more efficient public and private services, it will also allow transparency in doing transactions and other business processes.
It is the first step in digital transformation. This means that information between a supplier (e-seller) and a customer (e-buyer) are sent electronically instead of going through a paper based process. This includes sales and billing invoices, official receipts, debit/credit notes and other similar accounting documents issued electronically through the internet. This is a more convenient and practical way for companies, both public and private, to transact businesses and process documents. Electronic invoices are received straight into the buyer’s processing application, within seconds after being sent by the supplier which eliminates the need for any costly, slow and labour intensive activities. This allows companies to save more money (labor and resources) because there is no human intervention and no paper produced. It is more reliable since there is no room for human error, increasing company efficiency and productivity. Also, transactions are done in real time because information is exchanged electronically without having to manually encode it. More importantly, it is environment friendly because it no longer requires use of paper. E-invoicing creates a positive impact on companies showing that they have taken social responsibility to protect the environment.
At present, a locally based company, JavTechnologies Incorporated, is one of the few who provides specialized e-invoicing and data integration services from small to large business enterprises. While other companies claim that they send their invoices automatically, they still manually enter the details into their system. On the other hand, JavTech’s e-invoicing solution offers a unique data capture service wherein information is extracted from application generated documents and process it straight into the back – office system. The patented automatic data capture technology processes millions of complex documents every month straight into a business’ back office system without human intervention. Simply put, JavTech fully automates the process without disrupting the existing system and more importantly, there is no human intervention.