e-Invoicing, is it for you?
If you run a business, the chances are, you would have created invoices. This can be a time-consuming activity, however with the advances of electronic invoicing (e-Invoicing), the task can be much more efficient.
The advantages of adopting e-Invoicing include:
- Invoices being created quickly with the use of templates and cross-platform integration
- Improved accuracy and integrity of data as the information is passed directly from access point to access point, eliminating the risk of errors.
- Improved cash flow and reporting
- Faster invoice delivery as paper versions can get lost or delayed especially if they’re sent by mail and invoices sent via email can get overlooked or trapped in spam filters. Because e-Invoices are sent and received instantly, there’s no need to follow up with buyers or re-send misplaced invoices.
- Higher response time from clients and an increase in being paid on time because e-Invoicing is easier to process.
- Better efficiency because suppliers don’t need to manually create invoices and send via email and buyers don’t need to download attachments and then manually enter the data.
- Better security because e-Invoicing works on a direct account-to-account basis and is protected by much better security protocols than email, the risk of scams is significantly lower.
- More sustainable because there is no need for paper invoicing and envelopes.
Australia uses PEPPOL for delivering e-Invoices. PEPPOL is an international standard and network adopted by the Australian Government for the electronic exchange of e-Invoicing and other procurement documents. PEPPOL ensures that documents and data is transmitted securely through approved service providers called ‘access points’ (your bookkeeping software). Using a single framework means there aren’t barriers to invoice exchanges between businesses that use different software, which, in turn, makes trade easier.
E-Invoicing may seem complicated but it’s a lot easier than you think with many programs having automated features. The key is to find the software that is right for you and your business.
Xero is one of the best bookkeeping solutions on the market. In fact, it’s the software we use here at The Money Edge. Because Xero is built for e-Invoicing from the ground up (and accredited as an e-Invoicing Ready Provider by the ATO), you can start using it straight away. It has every e-Invoicing feature you’ll need, and it’s incredibly straightforward to use.
MYOB is an ATO-accredited e-Invoicing provider that comes with a host of other bookkeeping and accounting features. Full e-Invoicing is available without any add-ons or separate registrations.