The possibility of an eInvoicing mandate for Australian businesses is generating a lot of talk. Right now, the government is seeking feedback on the best way to do this. While mandates can be daunting, this one offers businesses significant benefits.
- faster payment
- automated invoicing processes
- reduced costs and paper use
- fewer errors
- improved security.
Check out our Benefits of eInvoicing for businesses infographic for more.
Businesses will get paid faster
At any given point it’s estimated that unpaid invoices for Australian businesses total $26 billion. According to sources, eInvoicing will reducing payment times and:
- improve on-time payment by 15%+
- reduce processing time by up to 65%.
$28b saved over 10 years
Australia exchanges 1.2 billion invoices p.a. eInvoice processing is around 70% cheaper than traditional invoice processing, saving the economy an estimated $28 billion over 10 years.
Business has a reason to get onboard
A mandate will hasten the crucial digitisation of business. More eInvoicing means more businesses on the network making it work better for users, delivering significant benefits for everyone.
The broader digitisation of business and trade
We can all agree digitisation is the future. eInvoicing simplifies trade for many businesses by reducing processes and international trade barriers while improving systems and providing more growth opportunities.
More software will allow eInvoicing
An eInvoicing mandate for business will drive software providers to integrate eInvoicing into their products.
What we’ve seen from other mandates
In Australia Single Touch Payroll (STP) was mandated. It forced employers to disclose payroll and tax information to the ATO after every payday. Without it, businesses would still be using an error prone, paper-based and manual reporting system. Employees would also need a PAYG summary when they do their tax returns.
So, what’s the takeaway of a possible eInvoicing mandate?
An eInvoicing mandate would kick off great things for Australian businesses as they streamline their legacy processes and reduce costs. But adoption is key and an eInvoicing mandate will ensure this.
Get in touch with our team to learn more about how eInvoicing can improve your business.