If you despise the process of raising invoices, then listen up!
There is a better, less time-consuming way. You can ditch the fillable template documents and manual invoice book (if you are still using them of course).
If you run a business, chances are you will have heard about electronic invoicing or e-Invoicing for short. If you haven’t, you soon will. Over the next 12 months, the concept will be rolled out in New Zealand.
Already in use in 32 countries, e-Invoicing is happening here. It offers any business – big or small – a bunch of benefits should they choose to adopt it.
Here, we explain what e-Invoicing is, how it works, and how it can impact your business.
What Is e-Invoicing?
E-Invoicing enables direct communication between the accounting systems of buyers and suppliers.
Basically, it removes the need for paper and manual invoicing by allowing these programs to “talk” to one another, regardless of which system is in use.
Financial data is exchanged using secure and trusted service providers with international standards. These will be regulated by the New Zealand Business Network and are being launched collaboratively by the governments of Australia and New Zealand.
The Benefits Of e-Invoicing
There are a number of benefits for adopting e-Invoicing in your business…
- Writing, printing, sending, and chasing up invoices can be time-consuming. E-Invoicing streamlines the process, saving you time and money and increasing efficiency.
- It’s easy to use and suitable for any size of business or type of accounting software.
- E-Invoices are sent directly into the recipient’s accounting system, cutting down on delays, and “middlemen.”
- You will save money! The New Zealand Business Network estimates cost savings of $15 to $18 per invoice when compared to using PDF or paper invoices.
- Automation means less manual handling, reducing the chances of errors or misplaced invoices
- The secure systems used makes it difficult for invoices to be tampered with, intercepted, or lost. Every invoice is validated by the Peppol (Pan European Public Procurement Online interoperability framework) eDelivery network to make sure it is valid and error-free.
- By moving away from paper-based invoicing, you will be one step closer to a paper-free business. That increases your sustainability, as well as saving you money.
- These tried and tested international standards make it simple for businesses to communicate and transact.
- E-Invoicing allows you to include as much detail on every invoice as you need, providing transparency and improved financial management.
How To Start Using e-Invoicing In Your Business
To move to e-Invoicing, you will need to know your New Zealand Business Number (NZBN) – every NZ business should have one. Companies are assigned these automatically on registration. If you’re operating a partnership or as a sole trader and haven’t yet been assigned one, you can jump onto the New Zealand Business Network website to get one.
You will also need to find out the NZBN of every business that you will be sending invoices to. These numbers are quick and easy to find using the same website.using the same website
To utilise the Peppol framework (which is necessary to jump on board with e-invoicing), you will likely need a service provider. This can be in the form of accounting software that supports e-Invoicing, or an e-Invoicing service provider such as Streamline, Access Point, Service Metadata Publisher, and Translation services.
If you have any questions about how you can implement e-Invoicing in your business, get in touch with us here at Admin Army. Our team of bookkeepers are experts in e-Invoicing and can help you get set up in your business.
Keeping on top of payments and maintaining positive cash flow is one of the most vital components of running a successful business. E-Invoicing can help make life easier. It will ensure you are paid (and make payments) on time. It also makes the often complex task of financial management just a tad easier.
So, get in touch with the Admin Army team today to get sorted with e-Invoicing in your business!