eInvoicing: See the 5 things accountants need to know
Published: 19 November 2021
For many businesses invoicing can be an unproductive and time-consuming process – and likewise for you, as their accountants.
eInvoicing is a new way of invoicing that simplifies and automates the process and is now being rolled out across the country supported by the Ministry of Business Innovation and Employment.
With over 280 million invoices exchanged in New Zealand annually, savings to our economy through eInvoicing are estimated to be $4.4 billion over 10 years.
Indeed, over the coming months and beyond, eInvoicing will unlock some significant benefits for business.
Here are the top 5 things you need to know about eInvoicing
1. eInvoicing is NOT sending a PDF invoice
Unlike emailing or posting a PDF, eInvoices are sent electronically through the secure government-backed network right into the buyer’s financial system. There’s no need to generate a PDF.
2. eInvoicing means faster payments and improved cashflow
With this speedy direct exchange, information is validated as it passes through the network, reducing delays, making payments faster and improving cash flow.
3. Reduced processing costs
eInvoicing is estimated to cost $7.63 per invoice amounting to savings of $18.00 per paper invoice and $16.58 per PDF invoice. Buyers also no longer need to manually input, reducing costs, the risk of errors and making reconciliation and coding easier.
4. Improved financial visibility
eInvoicing allows for a lot of detail from each invoice to go directly into your accounting system, providing better visibility and richer information. This supports business to analyse, forecast, plan and budget, enabling more accurate financial management.
5. It’s easy and it’s free
For most small businesses, eInvoicing is easy and free or low cost to get set up and started. More than 3000 businesses have registered for eInvoicing and the more that are eInvoice-enabled, the more they, and the economy, will benefit.
Accountants play a critical role in helping Kiwi businesses make this transition. We encourage you to find out more about it and encourage your clients to take the next step.
Help your clients make the transition.
Please note: This content will change over time and can go out of date.