PSD2 is a blessing for the digitised invoicing process
Thanks to PSD2, fintech companies can ask banks to provide them information regarding the transaction data in their customers’ bank accounts – provided they have obtained the relevant customer’s permission first. They can also initiate financial transactions themselves from those accounts. This offers you, as an accountant – as well as your clients – many advantages. At Billtobox, we can assign each customer a single, central IBAN account as a consolidation account for this customer’s other accounts at different banks. All payments can be made and received from this central IBAN. Reconciliation can take place via the IBAN account, so that the reconciling of invoices is forwarded directly and is 100% accurate. Therefore, less manual work needs to be done, resulting in fewer mistakes.
A bridge between invoice and paymentThis also means that there is a direct link between documents – such as invoices – and payments. This will simplify companies’ administrative processes tremendously, particularly if they are linked to a digitised invoicing process like our Billtobox. When an invoice comes in, we automatically extract the metadata from it. This metadata can also be used from PSD2 to directly launch the payment; the payment initiation. In short, PSD2 allows us – and you – to build a highly efficient bridge between the payment of the incoming invoice and the reconciliation with the accountant.
Does that mean the end of paper? Not necessarily. You too undoubtedly have ‘shoebox’ clients who keep all their paper invoices and receipts and then – yes, sometimes literally – deliver them to you in a shoebox. Do you have to tell your clients they can’t do that anymore? Of course not. Even if this is not a method that we would recommend in our day and age, the customer is still king. That's why we’re making the digital transition in a non-disruptive manner. The client can still bring in his shoebox. We make sure everything is streamlined into a single digital and super-efficient funnel from which you and your customers can reap the benefits.
Time for real-time consultancy
By steadily reducing all this paperwork, you will have more time to fulfil your role as an accountant – and do so even better. In addition to this, you also have much faster access to your clients’ current cash flow information. This allows you to provide them real-time advice and detect and resolve problematic issues faster than ever. And that’s exactly where you contribute added value.
Would you like to know more about the possibilities of PSD2 in combination with a digitised invoicing process like Billtobox? Please feel free to contact us!