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- Software providers
- Suppliers
- XERO
Could mandatory eInvoicing be on the cards? Business eInvoicing Right (BER) explained
- A phased mandate for all businesses
- A mandate for only large businesses
- No mandate.
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Accounts receivable automation using eInvoicing
- You find your customer’s purchase order (PO) in your software and create an invoice from it. Your team then sends the invoice electronically from your software. The invoice is sent, almost magically, through the Peppol network directly to your customer’s software. They don’t need to scan it, type it in or anything.
- Your customer’s software may then be able to match the received invoice against the PO for payment authorisation.
Get paid faster
If you’re in accounts receivables, you want to send out invoices and get paid as quickly as possible. That’s where eInvoicing comes in. Studies have shown eInvoicing can reduce processing cycle time by up to 65%. Some government agencies even promise to pay their suppliers’ eInvoices in just five days.Reduce disputes
The automation of eInvoicing also makes it very unlikely for any errors to show up on invoices when your customers get them into their software. This reduces the chance of your customers ringing you up asking about invoices with the wrong quantities or costs… yikes!Get more visibility
Typically when you email an invoice, you only know it's approved once you receive the payment into your bank account. Or sometimes your customers might be nice enough to send you a remittance advice. The eInvoicing model supports eInvoice responses, which can tell you when an invoice is acknowledged, approved, paid, rejected and more. It can even tell you why it's been rejected.Reduce invoice processing costs
eInvoicing digitises the whole invoicing process so it’s one less thing you need a printer for. Plus, an added bonus of eInvoicing is less need for archiving invoices, which reduces costs by up to 32%. Overall, studies have shown it costs $30.87 to process a paper invoice, $27.67 a PDF invoice, and only $9.18 to process an eInvoice.Interested in learning more about eInvoicing for your accounts receivable team? Ask our experts by getting in touch below.Request a call back
What’s next for eInvoicing?
eInvoicing continues to grow in popularity and it’s expected to expand further. There’s a lot coming to eInvoicing in the future so we thought we’d look at some of the developments.
More message types on the Peppol network, not just eInvoices
Studies have shown that 72.5% of invoices globally are paid late . In 2016, Australian companies were an average of 26.4 days overdue on their invoice payments. With the help of eInvoicing, we’re seeing sellers being paid in less time. This improves cash flow and allows businesses to use their funds more strategically.
Could there be a business mandate for eInvoicing?
In 2020, the Commonwealth government’s Treasury sent out a request for feedback from businesses on options to accelerate the adoption of eInvoicing an. One option involves requiring all businesses to have the capability to send and receive Peppol eInvoices, with large businesses being the first. Another option would be to require only large businesses to have the ability to send and receive Peppol eInvoices. The last option is a non-regulatory option that offers more flexibility for businesses to choose their own pathway to adoption. This is by no means a mandate for eInvoicing at the moment, but some of the options, if implemented, could bring a mandate.
We’ve also seen the Government push the Business eInvoicing Right (BER) initiative to encourage the adoption of B2B eInvoicing. The BER allows companies to request their trading partners to send them eInvoices in the Peppol format. The objective of the BER initiative is to gradually introduce the obligatory use of eInvoicing among Australian companies, based on their size.
Push by government to get suppliers onboard to eInvoicing
With government agencies and departments going through mandatory implementation of eInvoicing, it’s only a matter of time before their suppliers follow suit. There’s already been talk about government agencies mandating their suppliers to implement eInvoicing. The ATO is currently focusing on a push to large businesses, particularly in the utilities and telecommunications sectors, to support eInvoicing.Have more questions? Ask our experts by getting in touch below.
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5 reasons why companies are choosing eInvoicing
We continue to see eInvoicing gathering momentum. Here in Australia, the number of companies registering for eInvoicing is growing hugely. Here are five of the reasons companies are choosing eInvoicing.
They’re getting paid faster
Studies have shown that 72.5% of invoices globally are paid late . In 2016, Australian companies were an average of 26.4 days overdue on their invoice payments. With the help of eInvoicing, we’re seeing sellers being paid in less time. This improves cash flow and allows businesses to use their funds more strategically.
They’re saving time by reducing manual processes
With an outdated system, processing invoices involves lots of steps. With eInvoicing there’s no need to enter invoice data, saving you time. MessageXchange can even automate more processes such as matching invoices to PO numbers and more. All these things let your staff focus on more important tasks.
They’re saving costs and reducing errors
The ATO estimates paper and PDF invoices can cost between $27 and $30 to process. eInvoicing reduces the costs to less than $10. In Australia alone, 1.2 billion invoices are sent each year, so you can already see the savings that are to be made. You can save on:
- paper costs
- printing costs
- additional scanning equipment costs.
Manually inputting invoices exposes businesses to human errors. The automation from eInvoicing can reduce errors by up to 37%. Errors can be costly for any business, and especially the costs involved to rectify them.
They’re using a more secure way to exchange invoices
Invoices are often a targeted way for scammers to commit fraud. A recent study by XERO found 18% of Australian SMEs have fallen victim to invoice fraud and this costs a business an average of $15,500. This number has only grown with the increase of scams during the pandemic. To avoid this, eInvoicing messages go through the secure Peppol network, which has processes in place to reduce the risk of fake or comprised invoices.
They’re on a digital transformation journey
Digital transformation is the move to digital technology to improve existing processes. eInvoicing does exactly that and is a great starting point. Can you imagine if you were still issuing invoices by fax? We’ve well and truly moved on from that, and eInvoicing is the new way.
Getting started with eInvoicing
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Check your software
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Our team connects you to the Peppol eInvoicing network
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Go live!
Want to get started with eInvoicing? Get in touch with our eInvoicing team below to learn more.
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The future used to be paperless. Now it’s PDF-less.
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How eInvoicing delivers a better procure-to-pay (P2P) experience for your suppliers
What is eInvoicing?
In short, when your suppliers create an invoice in their invoicing software, it’ll almost ‘magically’ appear in your accounting software. To find out the nitty gritty, have a look at our whitepaper, an introduction to eInvoicing.So how does it benefit your suppliers?
It’s sent directly from the supplier’s software into the customer’s software
Once your supplier enters it into their software, they can be rest assured that it’ll be delivered straight into their customer’s software. And if, for whatever reason it can’t be, the supplier will be sent a notification, so they’re always in the loop. This means their invoice will be received in record time, and the payment process can begin. Winner!It doesn’t get lost among emails or people forgetting to forward it on
Gone are the days of emailing a PDF invoice, waiting for the person the supplier deals with to approve it, pass it onto the accounts payable team for processing and then joining the payments queue. eInvoices go straight into the customer’s software, so there’s not getting lost in emails – it joins the queue, which is often automated by the customer, to speed up the process.Suppliers can get notified of the status of an invoice
One of the real benefits for suppliers is getting notifications of the invoice status. The eInvoicing network (Peppol here in Australia and New Zealand) has a ‘response’ message that goes back to the eInvoice sender to let them know if the eInvoice has been received (or failed or rejected for whatever reason) and can also update the supplier on things like whether it’s been approved for payment, whether it’s been paid, and more. eInvoicing has heaps of benefits for you too, not just your suppliers. You can have peace of mind invoices won’t go missing, plus you don’t have to worry about entering the data incorrectly into your software.Ready to get yourself or your suppliers onboard to eInvoicing? Here’s how…
First, get yourself eInvoicing-enabled
You’ll need an eInvoicing service provider. This is called an ‘Access Point’. The Access Point gets the invoices into your software (and also out of your software if you’re using it for accounts receivable invoicing too). It’s your gateway to the eInvoicing network. Get in touch with us to find out what the best option is, or have a look here.Then get your suppliers onboard
Depending on our suppliers, it could be worth breaking them down into groups to get them onboard. This is handy so that you’re not overwhelmed with the task, but also allows you to tailor your communications, depending on your suppliers. Take a look at our whitepaper, a guide to successfully onboarding trading partners to eInvoicing.Request a call back
eInvoicing around the world: A March 2022 update
Europe
Poland
The Polish Government is mandating B2B eInvoicing countrywide by 2023 through their national eInvoicing system (KSeF). All suppliers will be required to issue eInvoices and all buyers will be required to receive eInvoices via KSeF.France
In France, mandatory B2B eInvoicing will begin from 1 July 2024 for the 300 largest enterprises. All large enterprises will be required to receive eInvoices from the 1 July 2024. 8,000 medium-sized enterprises will need to be able to receive eInovices from 1 January 2025 and remaining businesses will need to have the ability to receive eInvoices by 1 January 2026.Portugal
The Portuguese Government is implementing mandatory B2G eInvoicing from 1 January 2022.Cyprus
The Cyprus Government is also implementing mandatory B2G eInvoicing from 1 January 2022.Spain
Spain has planned to pass law to mandate B2B eInvoicing from 2023.Belgium
Belgium has also planned to pass law to mandate B2B eInvoicing from 2023.Middle East
Saudi Arabia
Saudia Arabia are in progress with their two phase implementation of eInvoicing applicable to all B2B, B2C and B2G transactions:- Phase 1: Suppliers can no longer generate or store paper, picture format or PDF invoices.
- Phase 2: Mandating eInvoicing countrywide using Saudi Arabia’s eInvoicing platform (ZATCA).
Asia
Japan
Japan has joined the PEPPOL network and will look to implement with B2B and B2G transactions but no mandate is in place at the moment.Philippines
A pilot scheme for B2G eInvoicing will start in the Philippines on 1 July 2022.Vietnam
A mandatory B2B electronic invoicing in Vietnam for companies in Hanoi, Ho Chi Minh City, Hai Phong, Quang Ninh, Phu Tho and Binh Dinh by March 2022. The other provinces will do the same by July 2022.Americas
United States
The Government are commencing a pilot program to standardise the use of B2B electronic invoicing in the United States to start in the coming year.Panama
Electronic invoicing will be mandatory in Panama in 2022- As of 1 January 2022, it will be mandatory for taxpayers registered with a tax identification number (RUC).
- And as of July 2022, it will be mandatory for all other companies.
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Keep up to date with all that’s new and get some helpful tips about eInvoicing
Tips for writing a tender document to find an eInvoicing provider
Get to know the ins and outs of eInvoicing
The last thing you want is to be unprepared. Getting to know the basics of eInvoicing makes this process much easier. Make sure you get to know what eInvoicing is and how it works. Learn about the use cases, the benefits, what it will mean for each of your teams (like accounts payable, accounts receivable, IT and others), what it will mean for your customers and suppliers, find out how others have used it as a start.Get to know what eInvoicing providers provide beyond just eInvoicing
Just like most industries, there are some eInvoicing providers who merely pass the invoice from A to B. But there are others who have capability to do much more. Here at MessageXchange, our powerful software can insert missing information, check the information you require is on the invoice and perform complex lookups, workflows, rules and more. This functionality is particularly useful for organisations who have complex business rules, automated payments and integrations with multiple systems.Have a clear view of how eInvoicing will fit into your architecture and processes
For smaller organisations, it can be as simple as eInvoices coming in and out of your software. Even in this simple case, you’ll need to know how they will come in and out – through an API, can it drop and pickup files from an SFTP folder or does it need to use another method – and what format they will come in and out in – will it be an XML format, a CSV or something else? For larger organisations, accounts receivable invoices may come out of one system and accounts payable invoices may go into another. You may have a single integration point for any data coming from the outside world, rather than connect to your systems directly. Be very clear on what this process will look like for your company. On the accounts payable side, many organisations have automated matching against an order, or checking the vendor number or ABN or other data. Make sure you know how eInvoices will fit into this process.Get familiar with your company’s IT policies for external vendors
Some companies require IT vendors to have backup, redundancy and service SLAs. Make sure you’re familiar with what your company requires so you can be clear about this in your tender.Start writing!
- Document your setup and key information like:
- The software you use (and go into detail if your setup isn’t straightforward, for example if you have multiple systems)
- Whether you want to send and/or receive eInvoices
- How many eInvoices you expect to send and/or receive
- Break it down into sections. Example:
- Company information
- Technical requirements
- Business process requirements
- Procurement requirements
- Contract
- Pricing
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Keep up to date with all that’s new and get some helpful tips about eInvoicing
Don’t think you’re ready to use eInvoicing? It’s not as difficult as you might think
Get started with a web portal
Did you know you don’t need to spend time and resources integrating eInvoicing into your software? If you’re looking for something quick and easy, all you need is internet access – and if you’re reading this, you’ve got that. Basically, you can login to a web portal like Colladium to send and receive eInvoices using an easy-to-use interface. It’s one of the simplest and most cost-effective options to start eInvoicing. Colladium only takes minutes to sign up and it’s free to use. All you need to do is register and get started!Plug and play software integrations
Your existing software might have some plug-and-play style integrations to start eInvoicing. These allow you to send and receive eInvoices using your own software, and setup is quick and easy. MessageXchange has an easy option for MYOB Account Right and New Essentials users. Send invoices directly to your customers’ software and receive bills directly into your In Tray. Plus, Technology One Ci Anywhere and Oracle Financials Cloud users can take advantage of our eInvoicing Connect product to start receiving eInvoices in just days.Ask your existing Invoicing/ERP software provider
You may not know it, but your current software may be eInvoicing capable. You should ask your provider if eInvoicing is already enabled or whether they plan to make it available.Find an eInvoicing service provider
If you’re working with software that isn’t enabled for eInvoicing you can get easily set up with an eInvoicing service provider, like MessageXchange. We’re able to help you send and receive eInvoices directly from your software. Even if your software doesn’t export or import the Peppol standard file we can translate the files to whatever your software needs. Want to get started with eInvoicing? Get in touch with our eInvoicing experts by filling the form below.Request a call back
How leading organisations are managing the transition to eInvoicing
Educating themselves about eInvoicing
Getting your head around eInvoicing – what it is and what it means for your business – is one of the most important steps. It’s a new concept for a lot of people, but there are some fantastic resources out there. The Australian Taxation Office (ATO) and New Zealand’s Ministry of Business, Innovation and Employment (MBIE), as the Peppol authorities, have some great information aimed at businesses and Government explaining eInvoicing and its benefits:- ATO eInvoicing: https://www.ato.gov.au/Business/eInvoicing/
- MBIE eInvoicing: https://www.einvoicing.govt.nz/
- An introduction to eInvoicing: https://home.messagexchange.com/resources/whitepapers/an-introduction-to-e-invoicing-whitepaper/
- A guide to adopting eInvoicing: https://home.messagexchange.com/resources/whitepapers/a-guide-to-adopting-e-invoicing/
Getting internal teams on board
You might be the one in charge of implementing eInvoicing, but there’s no doubt that it involves a number of teams from IT to accounts payable and accounts receivable and beyond. It’s important you get all the relevant teams involved to make sure their needs are met, so they know how it will impact them and so they can answer any questions they get from others internally or even customers and suppliers. Here are a couple of resources that might help:-
- Getting your IT department ready for eInvoicing: https://home.messagexchange.com/blog/getting-your-it-department-ready-for-e-invoicing/
- Getting your accounts payable department ready for eInvoicing: https://home.messagexchange.com/blog/getting-your-accounts-payable-department-ready-for-e-invoicing/