21/01/2021

What’s the difference between EDI and eInvoicing?

Some of the main issues businesses face include too many manual processes, high supply chain costs and errors in supply chain documents. Electronic data interchange (EDI) has helped a lot of businesses overcome these issues through process automation. But now a new technology called eInvoicing is gaining popularity. We’ve compare the two and show when each should be used.

Comparing eInvoicing and EDI

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eInvoicing

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Electronic Data Interchange

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Message Types

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  • Invoices
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  • Invoices
  • Purchase Order (PO)
  • Purchases Order Response (PORs)
  • Purchase Order Acknowledgement (POAs)
  • Advance Shipping Notice (ASNs)
  • And more
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Governance

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  • Separate network providers that send EDI messages in the correct format to recipient.
Multiple standards
  • Common standards include EDIFACT, XML ANSI X12, EANCOM
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Security

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  • This is set by the Peppol authority
  • Access Points must comply with security requirements or can have access revoked.
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  • Security is set according to EDI standard used and each company and VAN’s security requirements.
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Connection protocols/message file format

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  • Any connection protocol and file format can be used between you and your Access Point
  • Universal Business Language (UBL) and AS4 is used between Access Points
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  • Any connection protocol and file format – often determined by one party

Which is better for you

EDI

This technology has been around for a long time. As a result, it has become the norm in a few different industries. Some of the main industries include retail, groceries and logistics. Businesses that operate in an industry that EDI is commonly used, should consider using EDI. EDI can send more message types compared to eInvoicing. For businesses looking to take their digital technology further and automate their entire supply chain, EDI could also be the choice for you.

eInvoicing

eInvoicing is great for businesses looking for a quick way to automate their invoicing processes. If you send and receive a lot of invoices, and aren’t really concerned about other data in the procurement chain, eInvoicing could be the right choice for you. eInvoicing is also useful for businesses that work with government agencies. As more government agencies move to eInvoicing it’s likely they’ll onboard their suppliers too. You can also benefit from 5 day payments for contracts less than $1 million from government agencies that are eInvoicing enabled.Want to learn more about these two technologies? Request a call with one of our eInvoicing or EDI experts today.

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E-invoicingEDI

19/01/2021

The A-Z of Peppol

What is Peppol?

Peppol is a set of specifications that help make cross-border eProcurement easier. The Peppol interoperability framework is currently used for e-invoicing in Australia and New Zealand.

The network (Peppol eDelivery Network)

The Peppol eDelivery Network connects systems with a set of standardised business processes and technical requirements. This provides an interoperable and secure network connecting all Access Points. All Access Points in the network use the same electronic messaging protocols, formats and digital signature technologies. This helps ensure secure messaging and makes it quick and easy for trading partners to connect and trade.

The document specifications (Peppol Business Interoperability Specifications ‘BIS’)

Peppol developed the Business Interoperability Specifications (BIS) to standardise the electronic documents exchanged and validated in the network. It specifies the process within the eDelivery network. The BIS requires the Universal Business language (UBL) to be used for documents within the network.

Governance

The Peppol framework is governed, owned and maintained by OpenPEPPOL. OpenPEPPOL is a non-profit international association that looks at ways to enable businesses to easily deal electronically. Peppol Authorities also have the responsibility to govern the eDelivery network and BIS within a defined jurisdiction. They also can approve and remove Access Points in the e-invoicing network.

Where are Peppol standards used?

Peppol is in use in 32 countries with 15 of those using Peppol authorities. Here is a list of the Peppol authorities and the countries where they operate:
  • Agency for Digital Government (DIGG), Sweden
  • Agency for Digital Italy (AGID), Italy
  • Australian Taxation Office (ATO), Australia
  • Coordination Office for IT Standards (KoSIT), Free Hanseatic City of Bremen – Germany
  • Danish Business Authority (ERST), Denmark
  • Department of Health and Social Care (NHS), UK
  • Department of Public Expenditure and Reform, Ireland
  • Federal Public Service Policy and Support (BOSA), Belgium
  • Financial Management Authority (FJS), Iceland
  • General Secretariat of Information Systems – Ministry of Digital Governance (GSIS), Greece
  • Info-communications Media Development Authority (IMDA), Singapore
  • Ministry of Business Innovation and Employment (MBIE), New Zealand
  • Ministry of Economic Development (MR), Poland
  • Ministry of the Interior and Kingdom Relations (NPA), Netherlands
  • Norwegian Agency for Public and Financial Management (DFØ), Norway
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E-invoicing

15/01/2021

eInvoicing around the world

eInvoicing is just starting to build momentum in Australia and New Zealand. In 2019, Australia and New Zealand signed the Trans-Tasman eInvoicing agreement, making it easier for businesses and government to exchange eInvoices, both within and between those two countries. Since then, we’ve seen an increase in government agencies implementing eInvoicing. And the Australian Government has promised to pay eInvoices in 5 days for contracts up to $1 million. They’ve also mandated the use of eInvoicing for all Commonwealth government agencies by the 1st of July 2022. So, eInvoicing in Australia and New Zealand is increasing. But how are other regions faring?

North America

In 2015, the US government mandated eInvoicing for federal government agencies by the end of 2018. The transition to eInvoicing was expected to bring a range of benefits including savings between $150 million and $250 million. Aside from Government, the largest adopters of eInvoicing are large enterprises. Some say a major issue in gaining adoption has been a lack of standards and too few eInvoicing service providers. In order to increase uptake, an eInvoicing framework is being created by the Business Payments Coalition (BPC) – a group of organisations and individuals that promote the adoption of electronic business-to-business (B2B) payments.

Latin America

Mexico has been one of the pioneers in eInvoicing globally. They started their eInvoicing journey in 2004, being one of the first in the world. Even though it wasn’t made mandatory, eInvoicing was largely adopted by businesses and government. In 2010, Mexico managed to achieve 100% adoption by businesses. The volume of digital invoices issued between 2011 and 2017 increased from 1.7 billion to 6.5 billion. Mexico’s success has led to other countries implementing eInvoicing. The Latin America region sends 36 trillion eInvoices a year and have achieved some of the highest adoption rates of eInvoicing in the world: Chile has over 88% adoption and Brazil has achieved 100% adoption for B2B transactions. The high adoption in the region is due to the mandating of eInvoicing in both public and private sectors. Many countries who have implemented eInvoicing have seen reduction in fraud and easier tax preparation for businesses. This is in addition to cost reductions from eliminating manual processes.

Europe

In 2019, the European Union made it compulsory to send eInvoices between B2G. And if adopted between businesses, it’s expected that eInvoicing in the region will generate savings of €40 billion a year. Many countries have started to mandate its use both in public and private sectors. For example, Finland has used eInvoicing since 2010 for public sector procurement and now uses eInvoices for 100% of its transactions. Most Finnish businesses have also adopted eInvoicing. And in Italy, eInvoicing was made mandatory for both B2B and B2C transactions in 2019. France is joining them by making eInvoicing compulsory for SMEs and microbusinesses from 2020.

Asia

Asia is one of the regions where eInvoicing is expected to grow the most in coming years. Singapore made eInvoicing compulsory in 2008 for B2G transactions. It was the first country outside of the EU to use the Peppol framework, chosen in part to facilitate international trade. Singapore is providing grants to cover up to 50% of implementation costs for enterprises and S$200 for SMEs who join the network. One of the reasons countries in the region are adopting eInvoicing is to reduce fraud. In 2016, Indonesia required taxpayers to issue invoices electronically in order to notify the enforcing authority. Mongolia, Azerbaijan and Kazakhstan have also implemented eInvoicing to curb the risk of fraud. It’s an exciting time for eInvoicing as we see a lot of countries, particularly in our region, move more and more towards a digital economy. If you’re interested in learning how eInvoicing can help your business, request a call back from our team.

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E-invoicing

16/12/2020

Tips for successful onboarding of your partners to eInvoicing

eInvoicing is gaining popularity as more organisations look to benefits from its efficiencies. einvoicing enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. To get the most out of eInvoicing, one of the most important things is successfully onboarding your customers and/or suppliers.

Why is onboarding so important?

It maximises your ROI

Every invoice you can process through eInvoicing increases your ROI. Generally, your setup cost is fixed, so get the most out of it through onboarding as many customers or suppliers as possible. Having all of your partners trading through the same method also reduces your costs because you don’t have to maintain several processes.

You use one process with all your suppliers

Businesses that don’t onboard all their partners have different processes for each. This makes invoicing for your teams more complicated and time consuming. If you still receive email and PDF invoices your accounts payable team still need to manually input the figures into your system.

The process of onboarding

There are a few steps in the process of onboarding partners to eInvoicing. It’s important to prepare for each one.

Segmenting

This stage assesses the ability of your partners to implement eInvoicing. Segment your partners into different levels of capability such as:
  • Those already using eInvoicing They’re ready to start sending you eInvoices and you send them eInvoices.
  • Those with the capability to start using eInvoicing Mainly those with ERP or accounting software and just need to enable eInvoicing.
  • Those currently not using software and physically receiving and sending invoices They could be using paper or sending documents via email.
These segments will require tailored communications and onboarding methods.

Communications

When onboarding your partners, it’s important to have a plan for communicating your transition to eInvoicing. This provides clarity and direction for the project. First things first, let your partners know you’re transitioning to eInvoicing. Communicating any type of change internally or externally is always daunting, but it’s important. At some stage, you may want to include requirements and message implementation guide (MIG) documents if you have them. MIGs are guides that detail what data in what format will be required to be exchanged. When onboarding your partners, it’s important to have a plan for communicating with them. It’s more than just announcing that you’re moving to eInvoicing. The main things you want to do when communicating with them is:
  1. Bring them along on the journey You may want to communicate with your suppliers giving them updates on the progress of your onboarding.
  2. Get their buy in Talk about why you’re transitioning to eInvoicing but also mention the benefits for your partners to use eInvoicing.
  3. Give them the info they need and make it as easy as possible At some stage, you may want to include requirements and message implementation guide (MIG) documents if you have them. MIGs are guides that detail what data in what format will be required to be exchanged.
If you’re interested in learning more about the process and best plan for onboarding, read our whitepaper, A guide to successfully onboarding trading partners to eInvoicing.

Certification and testing

The Peppol eInvoicing framework has certain fields that can be used within eInvoices. If you require certain fields on your invoices outside of these you’ll need to test your partners messages to ensure they include these fields. Once you’ve decided on these additional fields make sure to document it in a MIG or elsewhere. You will then need to ensure the eInvoices that your suppliers will send to you include these fields and are Peppol-compliant. MessageXchange provides customers with message compliance testing (MCT) service that is customised to each business’ needs. Your supplier will upload their Peppol eInvoice file to a portal, which will check its syntax, business rules and more against your requirements. It’s a simple interface for suppliers to test their messages and ensure it meets your requirements before they start to send you production-ready invoices. It also saves you from manually testing with your suppliers, which can require constant back and forth.

Managing a hybrid process while you onboard

It’s normal and expected that businesses maintain multiple invoicing processes while they’re onboarding suppliers. After all, not every business is in the same level of readiness when it comes to eInvoicing. Some may be more advanced than others. Some may be reluctant to change. For this reason, you’ll need to have different processes for different businesses. Initially you will need to continue operating in the same way with some businesses as you transition others to eInvoicing.

Tips for success

There are a few things to keep in mind to make the process go smoother.

Stage your onboarding process

It might be a good idea to start with the partners you know are ready and get them onboarded first. Then you can focus on other partners that might be less capable. Start with a small number at a time to make it more manageable, and to give you an opportunity to learn what to do, or not to do.

Remind partners of the benefits for them

It’s one thing to communicate your reasons for jumping on eInvoicing but it’s a good idea to make it clear how it’ll benefit your partners too. Reinforce these benefits in your communications throughout each stage. This will help them transition and comply with your process.

Give them options for compliance

We touched on your partners’ ability earlier on. It can be helpful to suggest options for compliance. You might think suggest a web portal to issue eInvoices for those who use their existing invoicing software. This can make it cheaper and easier for them to comply. We provide a free portal, Colladium, for these types of businesses to issue and receive eInvoices.

Seek help

If you’re stuck at any point in the process or need help always look for help. Your eInvoicing Access Point, or provider, can be a good starting point. They’ve likely seen the issue before, or know someone who has. If you’re interested in implementing eInvoicing for your business, request a call back below.

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E-invoicinggovernmentRetailersSuppliers

15/12/2020

eInvoicing and goods not for resale (GNFR): A recipe for success

Retailers are forever looking for ways to cut costs. Typically, it’s operations and supply chain that are targeted to improve efficiency and reduce costs. Retailers often adopt electronic data interchange (EDI) to automate the procure-to-pay process. But another, often overlooked area where processes can be optimised is also in procurement; it’s goods not for resale, or GNFR.

What is ‘goods not for resale’?

Goods not for resale covers anything that’s purchased without the intent of being re-sold. Things like:
  • store fittings
  • training
  • facilities and office space
  • utilities
  • professional services
  • marketing
  • travel
  • IT.
Procurement in these areas can be forgotten because they’re often managed by individual departments and can fall through the cracks, making it difficult to get an overall picture. A solid GNFR strategy gives you better visibility and understanding of your total costs, allowing you to identify unnecessary spending and achieve business objectives.

Find new areas to reduce costs. Enter, GNFR.

During tough times, businesses often push their efforts to cost reduction. And this normally happens in supply chains and operations like:
  • reducing locations
  • reducing staff
  • cutting prices and increasing discounting
  • looking for cheaper suppliers and products.
Continuing this path is unsustainable, so it’s important to look at other areas for efficiencies. Some sources claim GNFR can represent around 25% of a retailer’s total operating costs. One way to manage and improve GNFR procurement processes is eInvoicing.

eInvoicing: one small change for business, one giant leap for cost savings

eInvoicing enables organisations to exchange invoices electronically, directly between invoicing software. eInvoicing happens through a four-corner model, where corners one and four are the supplier and customer, and corners two and three are Access Points, like MessageXchange. Access Points connect to each other to exchange eInvoices. You can think of it like a telephone network – your phone and your friend’s phone are corners one and four, and your network provider (like Telstra, Optus or Vodafone) are corners two and three.When purchasing goods for your business, invoicing is one of the most time-consuming and costly processes. As a result of the automation from eInvoicing, a few benefits are:
  • Cost savings Studies have found that it costs, $27.67 to process a PDF invoice, and only $9.18 to process an eInvoice.
  • Easier invoice processing Removes the need for unnecessary data entry - the invoice just appears in your software. And by exchanging invoices directly between software, there’s less risk of them going astray.
  • Faster invoice payments The average eInvoice is processed in 5 days (compared with 23 days for a regular invoice).
  • Fewer errors Because much of the data entry is removed, reducing the risk of paying more for goods. This also improves data accuracy for use in reporting and optimising processes.
  • Better security Security measures, like encryption at rest and in transit, are implemented throughout the eInvoicing network so your data remains secure along the way.
GNFR typically accounts for 20% of a retailer’s spend but covers 80% of its suppliers and a high percentage of transaction volumes. If you compare the cost of a manual procurement process and an automated eInvoicing process in the GNFR space, it’s easy to see the cost savings add up. Request a call from one of our experts to learn more about how eInvoicing can help manage GNFR costs.

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E-invoicingRetailers

25/11/2020

OCR vs eInvoicing

Some of the challenges that finance teams, particularly accounts payable teams, can often face include:
  • too many manual processes
  • data entry errors
  • high costs from labour, printing and archiving
  • paying fraudulent or misleading invoices.
Two of the most common approaches to overcoming these issues are optical character recognition (OCR) readers and eInvoicing. So what should you choose?

What is OCR?

OCR is a technology that distinguishes printed or handwritten text characters of physical documents, such as a PDF document. The basic process of OCR involves examining the text of a document and translating the characters into code that can be used for data processing. OCR can be hardware using a physical scanner or software which takes advantage of Artificial Intelligence (AI) for character recognition.

How does it work?

Generally accounts teams upload the PDF or scanned document to their OCR software where the invoice is read, captured and input into their accounting software.

Pros and cons of OCR

From afar, it can seem that OCR reduces the amount of effort it takes to process and invoice, makes for faster processing and depending on the volume of invoices, can reduce costs. But because it’s not true data exchange because it scans an unstructured document and tries to interpret it, it can produce mistakes. Some consider 70% OCR accuracy as ‘good’. Identifying and fixing up these mistakes can be time-consuming and costly. Some of the other cons are:
  • a limited range of document types can be read
  • it isn’t always accurate, so further checks and balances need to be in place (often manual)
  • technology experts may need to be hired to look after your technology
  • upfront costs can be high.

What is eInvoicing?

eInvoicing enables organisations to send and receive invoices electronically, directly to and from their software. No need to scan an invoice before uploading it into your software like you do with OCR scanners.

How does it work?

eInvoicing in Australia and New Zealand is provided through a network of interoperable Access Points, like MessageXchange, that exchange your eInvoices using the Peppol standard that has been adopted around the world. You can think of it like a telephone network.

Pros and cons of eInvoicing

eInvoicing has a few key benefits:
  • cost savings from data entry, printing and archiving
  • easier invoice processing
  • faster invoice payments
  • fewer errors
  • exchanging invoices directly to and from software
  • Enhanced security.

Next steps

There are a few things you should think about when looking at eInvoicing:

Getting your business ready

To prepare your business, think about these things:
  • Define your objectives
  • Look at your business processes
  • Get the relevant teams involved
If you want to learn more about preparing for eInvoicing, check out our whitepaper, . At MessageXchange, we try to make things easier to get started with eInvoicing:[vc_column_inner width="1/3"]

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E-invoicinggovernmentRetailers

06/11/2020

The state of eInvoicing in AUS and NZ

eInvoicing has taken off in countries around the world. Here in Australia and New Zealand, eInvoicing is still in its infancy, but steadily gaining momentum.

What is eInvoicing?

eInvoicing enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. eInvoicing in Australia and New Zealand is provided through a network of interoperable Access Points, like MessageXchange, conforming to the Peppol standard. The standard was developed in Europe, but has been adopted around the world, including here in October 2019.

The current state of eInvoicing

The term ‘eInvoicing’ has been thrown around here in Australia for a number of years now. It really started to gain traction in 2019 when Australia and New Zealand signed a trans-Tasman eInvoicing agreement, allowing it easier for businesses both countries to exchange eInvoices. Today, the largest users of eInvoicing are government agencies. The Australian government is providing incentives for suppliers to use eInvoicing by promising suppliers with contracts less than $1 million payment within 5 days of issuing an eInvoice. In New Zealand, the government have set a target to pay 95% of all domestic invoices within 10 business days and eInvoicing is one of the key strategies to help reach it. New Zealand Inland Revenue (NZIR) was one of the first New Zealand government agencies to use eInvoicing. The focus for NZIR was to pay invoices early to help suppliers’ cash flow and to give them a seamless experience. Check out the case study here. The New South Wales state government has been a leader in eInvoicing in Australia. The Department of Customer Service (NSW DCS) recently implemented eInvoicing as part of the NSW Digital Government Strategy. The strategy’s purpose is to offer digital services that benefit customers and suppliers. Learn more about NSW DCS eInvoicing journey here. Some of the government agencies that are currently up and running with eInvoicing include:
  • The Australian Taxation Office (Australian government department)
  • The Department of Finance (Australian government department)
  • Services Australia (Australian government department)
  • The Treasury (Australian government department)
  • New South Wales Department of Customer Service (Australian state government department)
  • New South Wales Department of Premier and Cabinet (Australian state government department)
  • New South Wales Treasury (Australian state government department)
  • New South Wales Health (Australian state government department)
  • New Zealand Government Procurement (New Zealand government department)
  • New Zealand Inland Revenue (New Zealand government department)

What's next?

The government is currently looking for ways to increase the uptake of eInvoicing. The 2020 Budget here in Australia includes $120 million in funding to help businesses implement digital technologies. It also includes $3.6 million to make eInvoicing mandatory for all government agencies by the 1st of July 2022. If you want to get all the latest eInvoicing news, sign up for our newsletter below.

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E-invoicinggovernmentRetailersSuppliers

30/10/2020

Budget announcements and its impact on eInvoicing

The Australian government recently released its budget for 2020 and it’s clear that digital transformation is high on their agenda – it included $800 million to improve access to digital services. Some of the initiatives announced were:
  • accelerating the creation of a single national business registry
  • expanding the government’s Digital Identity Program
  • accelerating the take-up of 5G technology
  • promoting Australian finance technology overseas and
  • helping businesses adopt digital technologies.
eInvoicing is also high on their agenda. eInvoicing enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. Some of the benefits of eInvoicing include:
  • cost savings
  • easier invoice processing
  • faster invoice payments
  • fewer errors
  • exchange of invoices directly to and from software
  • improved security.

So what eInvoicing initiatives did the Government announce?

The Government set aside $120 million to help businesses adopt digital technologies, which includes $22.2 million specifically for small businesses. Small businesses in Australia have a long way to go, with some figures showing 90% of small and medium businesses still use paper-based invoices. The Government allocated an additional $3.6 million to help Federal Government agencies implement eInvoicing, which was announced in conjunction with a government eInvoicing mandate. Larger government agencies need to adopt eInvoicing by the 1st of July 2021, followed by all other agencies by the 1st of July 2022. The Federal Government also announced they’ll be looking at ways to mandate eInvoicing for State Government departments in the near future. This is just one of the steps to a more digital economy, with reports indicating government agencies, both federal and state, are responsible for around 10% of all business-to-business invoices. Another focus announced in this year’s Budget is to improve digital skills for workers and SMEs. $2.5 million will be allocated to help businesses with digital skills training. This funding will be used to develop a Digital Skills Finder platform to help workers and SMEs find training courses to further their digital skills.

What can we expect from the measures?

The Government have made it clear from this year’s Budget that they want to boost small business capability and increase the uptake of digital technologies. Overall, there are more than a dozen initiatives already planned to support businesses to adopt digital technologies. Expect to see Federal Government agencies implement eInvoicing early to comply with the mandate dates. And if you’re a supplier to government, expect to start receiving communications about issuing eInvoices. Now’s a good time to start preparing at your end and looking for eInvoicing providers. Just get in touch to find out more.

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E-invoicinggovernment

26/10/2020

Why government is so keen to implement eInvoicing?

Many organisations around the world are implementing eInvoicing, in particular government agencies. So why is government leading the charge? Here are a few reasons:

It benefits the economy

One of the key reasons government agencies are adopting eInvoicing is to stimulate the economy. It helps increase businesses’ cash flow because payment times are generally reduced. The Australian government even promises to pay eInvoices within 5 days for contracts less $1 million. In fact, studies estimate eInvoicing could provide the Australian economy with over $30 billion in benefits over ten years.

Benefits to government agencies

eInvoicing brings many benefits to government agencies themselves. These include:
  • Streamlined processes eInvoicing saves time processing invoices and payments by automating what would be manual processes. You don’t need to enter invoice information into your software, it just appears.
  • Fewer errors Less manual inputting also means less errors and more accurate data for reporting.
  • Reduced costs Because of the automation, workload and labour costs are reduced. And because there’ll be less errors, agencies avoid the added costs of fixing mistakes. Another critical cost that can be reduced is printing and filing. Overall, studies have found that it costs $30.87 to process a paper invoice, $27.67 a PDF invoice, and only $9.18 to process an eInvoice.
  • Faster payments eInvoicing can significantly speed payment processing due to automation. The average eInvoice is processed in 5 days, compared with 23 days for a regular invoice. This can help government agencies improve their supplier relationships and meet their promised payment terms.

Leading from the front

The government here in Australia is looking for ways to facilitate the adoption of eInvoicing. They’re leading from the front by implementing it with their own agencies first – they’ve mandated the use of eInvoicing for all Commonwealth government agencies by July 1, 2022. They’ve even promised $3.6million to help government agencies transition to eInvoicing and allocated $2.5 million to upskill workers and SMEs. There are a few agencies that are already accepting eInvoices. Some of them include:
  • The Australian Taxation Office (Australian government department)
  • The Department of Finance (Australian government department)
  • Services Australia (Australian government department)
  • The Treasury (Australian government department)
  • New South Wales Department of Customer Service (Australian state government department) – check out our case study
  • New South Wales Department of Premier and Cabinet (Australian state government department)
  • New South Wales Treasury (Australian state government department)
  • New South Wales Health (Australian state government department)
  • New Zealand Government Procurement (New Zealand government department)
  • New Zealand Inland Revenue (New Zealand government department) – check out our case study
If you’re looking at implementing eInvoicing, fill in the form below and we’ll get in touch with more information.

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E-invoicinggovernment

15/10/2020

Why finance needs to become friends with technology

Finance teams constantly find themselves battling things like:
  • a need to reduce costs
  • greater workload with the same amount of staff
  • manual processes, which often lead to errors and
  • disparate sources of data, making it hard to find information when they need it.
The good news is that technology can improve these issues. And that’s why finance needs to become friends with technology.

Here’s where technology can help

Automate your whole procurement process with electronic data interchange (EDI)

This can significantly improve the processes of ordering and invoicing for any finance team. So, what is it? Simply put, EDI is the exchange of business information directly between business software. Think of a purchase order being created in one company’s accounting package, and it ‘magically’ appearing in the supplier’s software. EDI can help:
  • Reduce manual processes EDI can ease a lot of pressure on finance teams that find themselves processing an increasing amount orders. You’ll no longer need to input data into multiple systems or email documents to buyers and suppliers. This leaves you more time to focus on the other tasks that might come up.
  • Reduce costs EDI reduces manual processes and significantly reduces the amount of labour needed to process orders. This is especially beneficial during peak times of the year where casual assistance can be required. On top of this, EDI is all digital so you can save a lot on printing and filing.
  • Reduce errors and improve data accuracy EDI also reduces the risk of errors, making the data more reliable for reporting. You could use that data to monitor suppliers’ performance around responding to orders or delivery times.

Remove manual handling of invoices with eInvoicing

Another bit of technology that can help finance teams is eInvoicing. Invoicing makes up a huge chunk of finance teams’ time. Electronic invoicing, or eInvoicing, enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning.

eInvoicing can:
  • Reduce manual processes eInvoicing automates a lot of the manual processes involved in invoicing. No need to input the invoice information into multiple software and attaching to an email before sending to the customer. Everything is done within your existing ERP or accounting software.
  • Reduce costs Reducing manual processes simplifies invoicing for any finance team leaving you more time to work on other tasks. It also helps reduce the need to additional staff cover during peak times. The sending and filing of these eInvoices are electronic reducing your paper use and filing costs.
  • Data accuracy Manual processing is reduced limiting the risk of errors and improving data accuracy. Fewer errors means fewer disputes with partners and the need to follow up or correct invoices.

Use the data from your automated processes for more

If you leverage technology, the likelihood is that you can now use the data at your fingertips in more in-depth, insightful ways.
  • Two-, three- or four-way matching Is your team manually checking orders before they pay invoices? This is something that can be completely automated. Two-way matching checks the quantity and price on the order and the invoice to make sure you’re paying for exactly what you ordered. Three-way matching also checks what was shipped (on a despatch advice). And the bee’s knees, four-way matching, checks what the suppliers has agreed to send from the order response.
  • Invoice reconciliation With a feed from your bank and visibility of your invoices, our technology can reconcile your invoices. Imagine the time that could save!
  • Reporting Now that all the raw data is at your fingertips, you can use it to report on anything. It might be DIFOT (delivered in full on time) performance, the amount of invoice discrepancies or something else. The options are only limited by your imagination.
If you’re interested learning more about how eInvoicing or EDI can help you, request a call from one of our EDI experts.

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E-invoicingEDIRetailersSuppliers

04/09/2020

When is the right time to implement eInvoicing?

eInvoicing lets companies exchange invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. Businesses are increasingly adopting eInvoicing to:
  • reduce costs involved in processing invoices
  • process invoices faster
  • make faster payments
  • reduce data entry errors
  • move to a more secure way of exchanging invoices.
So when is the right time to implement eInvoicing? Here are some signs that it’s now time.

Your customers and suppliers are implementing eInvoicing

As businesses and government agencies enable eInvoicing, there’ll be a bigger push for their customers and suppliers to join them. Some organisations are providing incentives to make the transition more attractive. For example, government agencies here in Australia who can receive eInvoices have promised to pay them in five days for contracts up to $1 million. So, if you have multiple partners who are using eInvoicing, now might be the time to get on board. You’ll can start exchanging eInvoices with them, and future proof your investment by connecting with other customers and suppliers as they come on board.

Data entry is taking up too much time and resources

If you’re struggling to keep up with all your work, or if you’re looking to hire extra staff to help with invoice processing, it might be time to look at eInvoicing. Invoice processing can be time consuming for accounts payable and receivables teams because of the manual inputting, which is prone to errors. Processing a paper invoice is estimated to take 23 days, and that’s when the process runs smoothly. As a business processes more invoices, this can take even longer. eInvoicing is significantly streamlined and automated, reducing processing time. eInvoicing can reduce it by up to 65%.

You’re seeing too many data entry errors

Processing invoices manually or using OCR scanning can be error-prone. If you’re seeing a high error rate, it could be worth considering eInvoicing. The data is only input once – when the supplier inputs it into their software. And it’s no re-entry or scanning required – the source data is used all the way through the process. eInvoicing can reduce errors by 37% compared to manual invoicing.

You want to reduce costs

All businesses are looking for ways to reduce costs. One process that’s often forgotten is invoicing. Traditionally, costs attributed to invoicing can be:
  • Printing: even if you’re using PDFs, invoices may be printed. You’ll need to pay for paper, ink and even printer maintenance.
  • Labour: you need people to process invoices and this only increases as your business grows.
  • Filing: if you’re storing hard copies of your invoices, the costs can add up.
Overall, it’s estimated to cost $30.87 to process a paper invoice and $27.67 for PDF invoices. If you’re processing more and more invoices, these numbers start to add up. For suppliers, eInvoicing can:
  • reduce accounts receivable costs by up to 44%
  • reduce archiving costs by up to 32%
For buyers, it can:
  • reduce the cost of receiving an invoice by up to 90%
  • reduce the cost of archiving accounts payable invoices by up to 67%
  • cost less than $10 to process
  • reduce accounts payable labour by 25-40%.

You’re undertaking a digital transformation review

Businesses often look to digital transformation to improve business process and performance. The result of it should also provide more accurate data to help with analysis and decision making. Finance teams can realise fantastic benefits when they implement eInvoicing. eInvoicing can automate the invoicing process and significantly reduce manual inputting. This improves data accuracy for reporting and decision making, making it easier to see real-time liability position. The other great thing is that it works with your existing accounting software, so there’s no need for further investment.

Low cashflow

High competition in the business environment has led to an increase in credit sales, particularly in Australia. This has led to a high volume of suppliers struggling with cashflow. Economic downturns have added further pressure, so now more than ever, businesses are looking for ways to collect receivables as quickly as possible. eInvoicing helps to speeds up the time it takes to get to a customer. It also speeds up invoice processing and payment for buyers. Studies show eInvoicing can improve on-time payment by more than 15%. If you think it’s time for your business to implement eInvoicing, request a call from one of our EDI experts.

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E-invoicingRetailersSuppliers

04/08/2020

What are my eInvoicing options?

eInvoicing is changing the way we send invoices and other documents to our partners. Simply put, eInvoicing enables organisations to send and receive invoices electronically, directly to and from their software. It removes the need for unnecessary data entry and inaccurate OCR scanning. eInvoicing happens through a four-corner model, where corners one and four are the supplier and customer, and corners two and three are Access Points. Access Points connect to each other to exchange eInvoices. You can think of it like a telephone network – your phone and your friend’s phone are corners one and four, and your network provider (like Telstra, Optus or Vodafone) are corners two and three.We’re seeing eInvoicing rapidly expand around the world, especially in government agencies. In Australia, the government has promised to pay suppliers with contracts less than $1 million in 5 days if they issue eInvoices. It can be difficult for suppliers to decide what’s best for their business. Here are some of the eInvoicing options you have as a supplier.

What are my options

Portal based eInvoicing

This option is the fastest to implement and has the least up-font costs. You can enter your eInvoices in a website and send them to your customer via the Peppol eInvoicing network. These are then received into your customer’s software.

MessageXchange offers businesses a free portal, Colladium, which can be used to send eInvoices to businesses on the Peppol network.

There are a few benefits of using portal-based eInvoicing:
  • It’s easy to set up
  • There’s generally no establishment fee and low to zero monthly costs
  • It can be accessed anywhere – you only need an internet connection
  • They often have an easy-to-use interface.

eInvoicing integration/gateway

The more automated option is an eInvoicing gateway or integration. This allows you to send and receive eInvoices directly from your ERP or accounting software. This means you don’t need to do any additional manual processes. Once you’ve entered the invoice in your existing software, it’s then sent to your customer’s software for them to process. There are a number of benefits to an integrated eInvoicing solution:
  • It uses your existing software
  • You can find cost savings (paper, printing and labour costs)
  • There’s no need for data re-entry
  • You’ll see fewer errors
  • It’s secure through encryption at rest and in transit.

What are my options

It’s important to choose an option that is adaptable and flexible for your business. Two of the main factors to consider are:
  • The amount of orders you receive As your orders increase, so does the amount of manual inputting.
  • Your strategic goals Whether you’re looking to automate your processes or just comply with your buyers eInvoicing requirements or incentives.
Use this table as a rough guide:[vc_column_inner width="1/2" css=".vc_custom_1565317545162{padding-top: 0px !important;background-color: #00b7f1 !important;}"]

Consider portal based eInvoicing if…

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Consider an eInvoicing gateway if…

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You issue a small number of invoices a month

[vc_column_inner width="1/2" css=".vc_custom_1565317619229{padding-top: 0px !important;padding-bottom: 0px !important;background-color: #eeeeee !important;}"]

You issue a large number of invoices a month

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You have a small amount of eInvoicing enabled customers

[vc_column_inner width="1/2" css=".vc_custom_1565317619229{padding-top: 0px !important;padding-bottom: 0px !important;background-color: #eeeeee !important;}"]

You have large amount of eInvoicing enabled customers

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You just want to comply with a handful of buyers’ requirements

[vc_column_inner width="1/2" css=".vc_custom_1565317619229{padding-top: 0px !important;padding-bottom: 0px !important;background-color: #eeeeee !important;}"]

You don’t want to double-enter data

[vc_column_inner width="1/2" css=".vc_custom_1565317604253{padding-top: 0px !important;background-color: #eeeeee !important;}"]

You’re just starting out in eInvoicing

[vc_column_inner width="1/2" css=".vc_custom_1565317619229{padding-top: 0px !important;padding-bottom: 0px !important;background-color: #eeeeee !important;}"]

You need a flexible solution that grows as your business does

[vc_column_inner width="1/2" css=".vc_custom_1595395392804{padding-top: 0px !important;background-color: #ffffff !important;}"][vc_column_inner width="1/2" css=".vc_custom_1565317619229{padding-top: 0px !important;padding-bottom: 0px !important;background-color: #eeeeee !important;}"]

You want to reduce errors

If you’re interested in learning more about eInvoicing options, fill in the form below and one of our experts will get in touch.

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E-invoicing