The Australian economy is starting to repair itself after the economic challenges faced from the pandemic. Even before the pandemic hit, the Commonwealth government identified eInvoicing as a key driver to improve the economy and in the latest budget, committed $15.3m to accelerate the adoption of eInvoicing.
All federal government agencies will need to have the ability to receive eInvoices by July 1, 2022. State and local government agencies, as well as the business community are also encouraged to follow suit in adopting eInvoicing.
While we can see notable benefits for the government, the benefits of eInvoicing for suppliers to government shouldn’t be overlooked.
Here are five reasons you should start issuing eInvoices to your government customers:
Peppol eInvoicing is completely paperless and suppliers who adopt eInvoicing can reduce processing costs by over one third. The ATO estimates the cost to process a PDF invoice to be $27 and the cost of processing an e-invoice to be less than $10. eInvoicing provides increased accuracy, so suppliers will save costs from reduced errors and requests for re-issues and customer service calls. Your employees can use this time on other important tasks.
Get paid faster
The Commonwealth government has announced a five day payment policy for suppliers who issue peppol eInvoices and have contracts valued under $1m. Government agencies will pay their suppliers within five days or pay interests on late payments.
Fewer Rejected Invoices
An eInvoice is transmitted electronically from the supplier’s software to the buyer’s software, eliminating manual processes and a lot of errors. As a result of the reduced errors, the risk of invoices getting rejected is lowered.
eInvoicing is almost instant, so suppliers can be confident their customers will receive eInvoices straight away. Suppliers can be kept up-to-date on the status of the invoices through the eInvoice response message to see if their customer has received the eInvoice, whether it’s been approved and submitted for payment, reducing the need for follow up calls and emails. eInvoicing also reduces the number of disputes lodged as a result of its increased accuracy.
eInvoicing is environmentally friendly as there is practically no use of paper and energy used in production and transportation of paper invoices is reduced. You also do not have to worry about the physical space used to store the paper invoices or worry about losing them!
If you’re a government supplier and are interested in learning more about eInvoicing and it’s benefits for you, request a call from our eInvoicing experts below.