In late 2019 we received some wonderful news - smaller New Zealand businesses can streamline payment processes like larger enterprises have done for years.
Electronic invoicing (e-invoicing) is a better, more future-focused way to process payments, and Australia and New Zealand are among the last developed countries to adopt it. Invoicing and processing your finances electronically takes less paper (like...no paper), less time, and less resource. It’s also easier to track, manage and reduce human error.
If, like most other businesses, you’ve ever had to chase a late payment, wondered when you sent an invoice or who you sent it to, you’ll understand exactly why e-invoices change the game.
What is e-invoicing?
Mutually beneficial for businesses and governments alike, e-invoicing has finally hit Pacific-based small and medium businesses to make payment processes easier. The Australian and New Zealand government-backed initiative involves foregoing paper-based (or even PDF) invoices and instead using a direct, digital service. All you and your buyer/supplier need is a registered NZBN.
Here are some of the reasons small and medium business are rushing to use e-invoicing:
They want to stop doing their finances manually.
We speak to so many small business owners that say, “I want to be focussing on my customers or growing my business, not sitting at my computer entering numbers into it. I just want it automated, is there software for that?” Thankfully, yes, there is.
They don’t want to spend $5 - $25 per processed invoice.
Combining the time it takes for a person to process the invoice and the cost of the software they use, manual invoices are outrageously expensive. When you switch to e-invoicing, the dollars change to cents, literally. Who can afford not to switch at that rate?
They want to trade internationally, particularly with Australia.
Following the government’s launch of New Zealand’s cross-border e-invoicing framework back in November, we’ve seen businesses move to e-invoicing international partners using the Pan European Public Procurement Online (PEPPOL) network. E-invoicing puts your plan to expand internationally within reach.
They want to keep up with bigger enterprises.
Big businesses have had this technology for a while now, but the evolution of software products, paired with the government’s initiative to get everyone invoicing electronically, has made e-invoicing both affordable and accessible to small and medium businesses. This makes it far easier for you to catch up with the giants.
Here’s how to set up e-invoicing
If you don’t already have an NZBN, now’s the time to get one. Every business that chooses to e-invoice will need one, and it’s free to get. You can start this process here: https://www.nzbn.govt.nz/get-an-nzbn/get-your-nzbn/
You also need to make sure everyone you send e-invoices to has an NZBN (or international equivalent). Most Kiwi businesses have this now, but this may be a conversation you’ll want to have with your suppliers.
Once you have an NZBN, our team will happily talk you through finance software offerings available that will get you going with e-invoicing. This will free up more time in your day and put money back into your pocket.
This shouldn’t be an enormous leap or big investment for your business. Our consultants offer the option to start small with easy-to-implement offerings. This approach helps slowly grow your business into automation, with proper training and comprehensive implementation. Isn’t it about time you freed up your workforce for more meaningful tasks?
If you're ready to switch from manual to fluid, get in touch.