See how invoicing is stepping beyond the PDF
Published: 19 November 2021
In the same way that many other administrative processes have evolved; from cheques to internet banking, from spreadsheets to cloud-based accounting, the next is invoicing.
It’s called eInvoicing and it’s a new way of invoicing that simplifies and automates the exchange and processing of invoices.
Currently, 66% of businesses invoices are PDF. Many might think they’re eInvoicing already when their software generates the PDF invoice and sends it via email to their buyer.
However, eInvoicing steps beyond that. It involves a direct exchange of invoice data between buyers’ and suppliers’ financial systems – even if these systems are different – with no need for a PDF to be generated.
This exchange happens through a government-backed eInvoicing network that allows different systems to talk to each other using an international standard (called Peppol), ensuring smooth, secure transactions across different systems, and markets.
Unlike emailing a PDF, sending eInvoices through the secure network means it’s less likely to be hacked, intercepted or lost along the way. With reduced risk of fraud and errors, there’ll be reduced delays in getting paid – and reduced angst - improving cashflow.
The speed of getting the invoice straight into the buyer’s system means faster payment – and improved cashflow. It also cuts costs, with eInvoicing estimated at $7.63 per invoice amounting to savings of $18.00 per paper invoice and $16.58 per PDF invoice.
And there is less admin. When eInvoices are received, there’s no need for manual input as the data is transferred straight into the system. This also reduces the risk of errors and makes reconciliation and coding easier.
Another benefit of eInvoicing over a PDF is that it 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.
eInvoicing is now being rolled out across the country supported by the Ministry of Business Innovation and Employment. The more businesses that are eInvoice-enabled, the more they, and the economy, will benefit from its speed, accuracy and savings.
Accountants play a critical role in helping Kiwi businesses make this transition. We encourage you to find out more about it and encourage and support your clients to take the next step.
Get started today.
Please note: This content will change over time and can go out of date.