The Challenge of Digital Invoice Processing
With the introduction of the e-invoice requirement, companies face a central question: Which invoice format is the right one? The choice between XInvoice and ZUGFeRD has far-reaching implications for the automation of accounting and compliance with regulatory requirements. Yet many companies face a dilemma:
- Is XInvoice compatible with my ERP system?
- Is a hybrid format like ZUGFeRD sufficient?
- How can invoices be efficiently automated?
XInvoice: The Structured Standard for the Public Sector
The XInvoice is a purely structured XML format specifically designed for public administration. This means:
✅ Standardized and recognized across the EU
✅ Mandatory format for public contracting authorities
✅ High machine readability for automated processing
❌ No direct human readability (only with special software)
🔹 Who is XInvoice suitable for?
- Companies that regularly issue invoices to federal, state, or local governments
- Companies with strong ERP systems that support structured data handling
- Companies aiming for fully digital processing
ZUGFeRD: The Hybrid Solution for Companies
ZUGFeRD combines a PDF with embedded XML data, allowing both humans and machines to read the invoice. The format offers:
✅ Flexibility: Hybrid of digital and readable
✅ Compatibility with many ERP and accounting systems
✅ Compliance with the EU standard for electronic invoices
❌ Possible issues with full automation
🔹 Who is ZUGFeRD suitable for?
- Medium-sized enterprises that work with various business partners
- Companies looking for a smooth transition from paper-based invoices
- Companies that cannot yet fully switch to structured data
Which solution is the best for the future?
The answer lies not just in the choice of format, but in the intelligence of processing. Companies should ask themselves:
➡️ How can I fully automate invoice processing?
➡️ How do I reduce manual posting errors and approval processes?
➡️ How can AI help process e-invoices error-free?
Here Finto comes into play: Our AI-assisted invoice processing automatically recognizes the format, processes both XInvoice and ZUGFeRD, and seamlessly integrates into existing ERP systems.
📌 Conclusion: While XInvoice is suitable for large, digitized companies and public contracting authorities, ZUGFeRD remains a flexible solution for SMEs. However, the real game changer is automation through AI.
