6 Benefits eInvoicing will give your Business
In today's digital age, businesses are constantly looking for ways to streamline their processes and improve efficiency. One such way is through the adoption of electronic invoicing, or eInvoicing.
eInvoicing has become increasingly popular in recent years, and for good reason. In this blog, we’ll explore why your business needs to adopt eInvoicing today. In this blog post, we’ll explore the benefits of e-invoicing and why your business should consider making the switch.
What is eInvoicing?
Electronic invoicing, or eInvoicing, is the process of sending and receiving invoices electronically rather than in paper format. eInvoicing involves the use of electronic data interchange (EDI) or other electronic methods to transmit invoice information between businesses. In essence, e-invoicing is a paperless invoicing solution that can help streamline your business processes.
So why is eInvoicing becoming more important in New Zealand?
New Zealand and Australia have committed to a joint trans-tasman Government approach to eInvoicing using the Peppol interoperability framework. Peppol’s a global standardised framework enabling businesses to exchange procurement documents electronically using an international, government-backed standard for eInvoicing used across 42 countries.
eInvoicing’s being rolled out across New Zealand to:
- Create an open market to enable all businesses to participate in digital trading
- Reduce accounts payable cost and inefficiencies associated with manual accounts payable
- Increase the speed of payments and move money around the economy faster.
The Peppol framework
The Peppol eInvoicing network incorporates an established set of common business processes and technical standards. This provides an interoperable and secure network using consistent electronic messaging protocol and formats, and digital signature technologies to secure message content.
Below, we highlight the different processes for eInvoicing vs traditional paper invoicing.
eInvoicing
Paper / Email Invoicing Process
eInvoicing benefits include
1. Faster processing times
eInvoicing is much faster than traditional paper-based invoicing. With eInvoicing, invoices can be generated and delivered in a matter of seconds. This means that your customers can receive their invoices faster, and you can get paid faster. In addition, eInvoicing eliminates the need for manual data entry, reducing the risk of errors and speeding up the processing time.
2. Improved accuracy and efficiency
eInvoicing significantly reduces the risk of errors in the invoicing process. With eInvoicing, data is automatically entered into your accounting software, eliminating the need for manual data entry. This reduces the risk of errors, such as incorrect data entry, and ensures that all information is accurate.
3. Reduced costs
eInvoicing can also save your business money. Traditional paper-based invoicing involves the cost of paper, printing, and postage. With e-invoicing, you can eliminate these costs and save money on postage, printing, and other related expenses. Additionally, eInvoicing reduces the need for staff to manually process invoices, which can reduce labour costs.
4. Compliance with Government Regulations
In New Zealand, the government has introduced initiatives to encourage the adoption of eInvoicing. The New Zealand government is committed to ensuring that businesses can send and receive invoices electronically, and has introduced a number of measures to support eInvoicing adoption. By adopting eInvoicing, your business can comply with government regulations and avoid potential penalties or fines.
5. Improved customer experience
eInvoicing can also improve the customer experience. With eInvoicing, customers can receive invoices instantly and can pay online, reducing the need for manual checks and bank transfers. This can help to improve customer satisfaction and can make it easier for customers to do business with you.
6. Improved security
eInvoicing is more secure than traditional paper-based invoicing. With eInvoicing, invoices are sent and received securely over the internet, reducing the risk of lost or stolen invoices. Additionally, eInvoicing platforms often use encryption to protect data, making it more difficult for hackers to access sensitive information.
Conclusion
In conclusion,
eInvoicing can offer a range of benefits for businesses in New Zealand. From
faster payment processing and improved accuracy, to reduced costs and improved
security, eInvoicing can help streamline your business processes and improve
efficiency. By adopting eInvoicing, your business can also comply with
government regulations and improve customer relationships.
If your business is still using traditional paper-based invoicing, it is worth considering making the switch to eInvoicing today.
Sources
*Ministry of Business Innovation and Employment Business Case Guidance Material