E-invoicing
Posted on 11 Apr 2022
First of all, what is e-invoicing? eInvoicing is a new way to exchange invoices directly between accounting software and is set to improve the accounts payable and receivable experience. It is the direct exchange of invoice information directly between supplier and buyers' financial systems, even if these systems are different. According to the Ministry of Business, Innovation and Employment (MBIE), it costs businesses around $26 to process a paper invoice, $23 for an emailed PDF invoice, and under $10 to process an e-Invoice due to the time saved by reducing manual handling.[1] This is not just a system for large, tech-savvy businesses, this is for businesses of any size and will benefit those of all sizes, especially small-medium sized businesses where cost control is very important. What are the benefits?
- With eInvoicing, businesses no longer need to generate paper-based or PDF invoices that have to be printed, posted, or emailed.
- buyers no longer need to manually enter invoice data into their financial system. It improves accuracy and security, reduces process time, and speeds up payments
- This process will reduce the risk of cyber hacking, cut admin time, speed up payments and improve cashflow
- eInvoicing enables a low-touch, error-free process that the current practice of emailing a PDF or scanning a paper invoice can't.
- There's no need for a PDF to be generated and no manual handling or data entry required when you receive an e-Invoice.
Read more on the benefits here. This process will help digitize businesses and automate a financial process.? You'll need an NZBN number to get started and there are many resources and guides on how to set up this process here. If you're using Xero, eInvoicing is included in Xero Starter, Standard and Premium plans; you don't need to purchase any additional add-on or external service to use it. Registration is easy and can be completed in a few clicks.? For MYOB users, all the information you need is here. There is usually no (or low) cost to set up and will be an initiative that will stick around and improve as more users get on board. If you're interested in learning more about this please let us know. [1] https://www.einvoicing.govt.nz/benefits-of-einvoicing/
