eInvoicing? See what New Zealand accountants need to know
Published: 19 November 2021
You’ve likely heard about eInvoicing. Maybe you or your clients are already using it? Or think they are?
Let’s be clear. eInvoicing is a completely new way of invoicing that automates and simplifies the exchange and processing of invoices.
And it’s not turning an invoice into a pdf – which currently most cloud software does. Instead, it’s the direct exchange of information between any two ‘eInvoicing-capable’ systems – with no human handling or data entry required. This direct exchange dramatically improves accuracy and security, reduces admin and delays, speeds up payments and improves cashflow.
As a result, eInvoicing gives today’s accounting systems a new step up in capability, letting businesses get paid faster, and do business more smoothly, safely and efficiently. And behind it, is a government-backed eInvoicing network based an international standard, for smooth, secure transactions across different systems, and markets.
It is now available to businesses and being rolled out across the country, supported by the Ministry of Business, Innovation and Employment.
Over the coming months and beyond, it will unlock huge benefits for New Zealand business and the economy. With over 280 million business to business invoices exchanged in New Zealand annually, savings to our economy through e-Invoicing are estimated to be $4.4 billion over 10 years. And the more businesses that are eInvoice-enabled, the more they, and the economy, will benefit.
Accountants play a critical role in encouraging and supporting businesses to make the transition to eInvoicing. There’s a one-off effort to get your clients set up for eInvoicing, which will be different depending on business size and current systems.
For small to medium businesses, it’s very simple and most businesses’ accounting and finance software provide free eInvoicing capability.
For large business with more complex systems, there will be some extra steps to transition to eInvoicing. And, as receivers of large volumes of invoices, significant savings can be realised through reduced processing costs, administrative delays and payment issues.
It’s a smarter way to invoice. It’s the next step for business.
Help your clients make the transition.
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