As part of the Digital Business Plan, the government has stated that electronic invoicing (e-invoicing) will be mandated by July 2022. Businesses will no longer need to generate paper-based or PDF invoices that need to be printed, posted, or emailed and buyers will no longer need to scan these into their accounting system.
E-invoicing will simplify and automate the invoicing process for businesses. The Digital Business Plan will consult on options for mandatory adoption of e-invoicing so businesses should choose the option most suited to them.
The benefits of e-invoicing for businesses include:
- Cost savings: In comparison to the paper invoice ($30) and emailed PDFs ($27) processing e-invoices is much cheaper ($10).
- Less time and errors: E-invoicing reduces manual handling and reduces the number of systems used. This means fewer mistakes and not having to re-key information.
- Reliable and secure: The channel through which e-invoices will be transferred is safer and more secure with the new system. The e-invoices will be sent through a framework with approved and authenticated participants.
- Reduced payment times: The government is supporting small businesses by offering improved payment times.
- Connect once, trade with many: All businesses, across industries and sectors, can trade with numerous partners, irrespective of their size. E-invoicing provides a faster, more secure, and borderless trading platform.
- Environmentally friendly: With e-invoicing, the use of paper is eliminated and overall, less energy and resources are required. Going paperless comes with its own benefits such as saving materials and reducing costs.
Businesses should consider transferring to e-invoicing as soon as possible. This may require updating existing software or adding and extra services.