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

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You issue a large number of invoices a month

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You have a small amount of eInvoicing enabled customers

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You have large amount of eInvoicing enabled customers

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

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You don’t want to double-enter data

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You’re just starting out in eInvoicing

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You need a flexible solution that grows as your business does

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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

26/06/2020

The benefits of eInvoicing for businesses: An infographic

eInvoicing automates the exchange of invoices directly between businesses’ software and its use is growing across the globe as a result of the benefits it brings. Australia and New Zealand have joined forces to to make trans-tasman eInvoicing easier using the internationally-adopted Peppol eInvoicing framework. Any business within this network can now send and receive invoices straight from their accounting software to their customer's software. No more emails, no more PDFs and no more manual data entry. If you're new to eInvoicing, check out our blog, traditional invoicing and eInvoicing: a comparison. Here are just some of the reasons businesses are turning to eInvoicing.

For buyers

A major benefit for those receiving eInvoices comes from the fact you'll no longer have to manually enter an invoice again. Think of the time savings and the mis-keying errors that'd disappear. Here are some stats:

For suppliers

A major benefit of eInvoicing is the speed of it. It can ultimately lead to faster payments, which means better cash flow for you. Let's have a look:

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E-invoicingRetailersSuppliers

15/05/2020

5 ways to make savings in your business when times get tough

A lot of us have had a chuckle at this meme:But it’s no joke. It’s times like these that often spur us into action. Whether you’re looking for ways to overcome the current economic downturn, prepare for the next one or you’re just looking for ways to reduce costs, have a look at these five things you can do to make savings:

Automate your supply chain

If you’re still emailing orders and invoices, you’re probably doing more data entry than you need. It might look like this:
  1. Buyer manually enter purchase order in their software.
  2. Buyer send order to supplier via email or post.
  3. Supplier receives order and manually enters the purchase order details into their software.
  4. Supplier manually enters the invoice into their software.
  5. Supplier send invoice to buyer via email.
  6. Buyer manually enters the invoice in their software.
This is where EDI can help. EDI connects your software with the software of your partners, automating most of the process. Here’s the difference:
  1. The buyer enters the purchase order in their software.
  2. It’s automatically sent to the supplier and appears in their software.
  3. The supplier actions the PO and then creates the invoice in their software and sends back to the buyer.
  4. The invoice then appears in buyer’s software.
This can save your staff a lot of time, allowing them to work on more high value tasks. It helps suppliers process and send invoices faster, which can improve cash flow. For buyers, invoices can be processed faster and some suppliers even offer discounts for early payments. The automation from EDI can also generate significant cost savings for businesses. Manual data entry errors and the costs associated with fixing them are also reduced through automation. Suppliers can send shipment information through EDI, allowing buyers to prepare in advance and better allocate their warehouse staff and resources. This can reduce receiving costs, particularly labour, for buyers. Check out our blog for more information.

Automate your accounts payable

Often errors are made by incorrectly entering invoice data. Not only does it stop staff from working on higher value tasks, but it can be costly to rectify the errors. EDI makes it easy to implement two- or three-way matching. Two-way matching involves automating the process of checking invoice quantities and values against that on the purchase order. Three-way matching goes one step further and also checks delivery information to verify the invoice is for the same quantity that’s been sent. It not only saves your team time, but can also reduce labour costs.

eInvoicing

eInvoicing allows you to send invoices directly from your software to your partners’. It uses the international Peppol standard to send and receive eInvoices. It’s different from EDI in that you only need to connect to the Peppol network through an Access Point to you can exchange eInvoices with anyone else in the network. eInvoicing produces savings by:
  • Reducing the amount of work required send invoices. This reduces costs and allows your accounts receivables teams to focus on value adding activities.
  • Helping increase cash flow for suppliers by speeding up the preparation and sending of invoices.
  • Helping buyers speed up their payment processing, allowing them to make good on early payment discounts.
Want to learn more about eInvoicing? Check out this blog.

Automate goods receipt

Receiving goods from suppliers can be a time-consuming process. It can be difficult to know when goods will arrive and therefore can be difficult to plan. This only wastes time, money and resources. A way to make savings in this area is to ask suppliers to send you advanced shipping notices (ASNs) directly to your software through EDI. ASNs detail what your supplier is sending, how it’s packed, when it’ll arrive and more. This allows you to prepare to have the right warehouse staff to receive the shipment, saving you money on labour and allowing you to allocate staff more efficiently. Receiving ASNs from suppliers will also allow you to automatically record stock as it comes in. SSCC labels (the barcodes on each unit your supplier sends) correlate to a unit (e.g. a box or container) on the ASN. Scanning each pack as it comes in reduces manual inputting, saving your warehouse team time and reducing the risk of costly inputting errors. It also means your stock levels will always be up-to-date.

Consider alternative models with suppliers

A large cost for retailers can be for warehousing and logistics and that’s why savvy retailers are turning to drop shipping. The drop shipping model sees the supplier hold stock. When the retailer makes the sale, they pass the details onto the supplier to ship the order to the customer. EDI can create even more efficiency in this model by:
  • Sending orders directly to suppliers when the order is placed
  • Reducing errors and the related costs
  • Keeping you updated on suppliers’ stock levels, helping you avoid shortages of goods.

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E-invoicingEDIRetailersSuppliers

26/03/2020

Benefits of eInvoicing for software providers: An infographic

eInvoicing automates the sending and receiving of invoices directly between businesses' software. Countries in Europe and South America were among the first to mandate eInvoicing and others around the world are starting to follow after seeing the benefits. In Australia and New Zealand, more and more government agencies and their suppliers are connecting to the eInvoicing network. Often the benefits of eInvoicing are focused on end users, but what are the benefits for software providers? We’ve gathered some statistics to explain some of the benefits for software providers and their customers at a quick glance.

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E-invoicingSoftware providers

27/02/2020

What do you need to prepare for eInvoicing? Your readiness checklist

So, you’re interested in implementing eInvoicing but unsure where to start? You’ve come to the right place. We’ve put together a few things you’ll need to think about.

Look at your business processes

This is to understand your current business processes and where eInvoicing could fit. Ask yourself:
  • How many invoices are you processing?
  • Are you sending invoices, receiving them or both?
  • Do you work with suppliers or customers overseas?
  • Are you looking to implement this with customers or suppliers, or are you complying with a partner’s requirement?
You’ll need this information to determine what solution is best for your business.

Gather information

If you’re going to send eInvoices, you’ll need to gather your trading partners’ eInvoicing identifiers – it’s usually an ABN or NZBN, but can be a GLN. The identifier is used by your eInvoicing Access Point to find your customers in the eInvoicing network. Your Access Point will also need your own identifier to register you in the network.

Get the relevant teams involved

It’s easy to have just one team take ownership of the project but it’s best to get all relevant business departments involved. By getting them involved, you’ll ensure that the solution suits everyone. The main departments are normally the finance and procurement teams, but it’s also important to include the IT team as it will involve your software.

Define your objectives

It’s important to think about what you’re trying to achieve – your business objectives – and how eInvoicing will help you achieve them. Defining these up front will help you keep on track throughout the project.

Review your software for eInvoicing

Before getting started with eInvoicing you will need to make sure your software is ready. Here are some things you should ask your invoicing software provider. Your Access Point may need this information to get you setup.
  • Does your software support eInvoicing?
    • If so, to what extent? Some software providers will offer a fully-integrated solution, while others might produce a file and customers will have to find their own Access Points.
    • Does eInvoicing require an update or an additional cost?
  • Does your software produce the Peppol file? If it doesn’t, your Access Point may be able to translate the file to the Peppol format.
  • Is your software cloud based or on-premise?
  • What connection protocol your software can work with?

Find an access point

There are a few things you should think about when looking at Access Point providers. These include:
  • Technical capability Make sure they can get you connected with your partners and the Peppol network quickly and easily. You should also be looking for a provider that can offer other services to future proof your investment.
  • Experience It is important to know about your provider’s experience and how they keep up to date with eInvoicing developments.
  • Pricing and support Understand exactly how you will be charged and what support you will receive to avoid any conflict in the future.
Having the information in all the sections above will help you start the process of enabling eInvoicing.

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E-invoicing

27/02/2020

4 things to think about when choosing an eInvoicing Access Point

Businesses around the world are recognising the benefits the Peppol eInvoicing network. Some of the benefits are:
  • easier invoice processing
  • cost savings
  • faster invoice payments
  • fewer errors
  • exchanging invoices directly to and from software
  • security
  • it’s 60–80% more efficient than paper-based processing.
If you’ve decided eInvoicing is right for you, the next step is choosing an eInvoicing Access Point. It’s important to make the right decision the first time around to avoid changing providers later on. Four main areas to consider when comparing eInvoicing Access Points are:
  • technical capability
  • experience
  • pricing
  • support.

Technical capability

An eInvoicing Access Point’s technology plays an important part in assessing their capability. Some of the things to ask are:
  • Does your eInvoicing Access Point have an integration with your ERP or accounting software? If they already have an integration with your software, the eInvoicing setup time is usually much quicker.
  • Can your Access Point translate files to the Peppol standard? This is important if your software doesn’t export files in the Peppol standard. If you’re not sure about your software’s file format, ask your software provider.
  • Can your Access Point send more than just invoices? Future-proof your investment by checking that your Access Point has other Peppol messages on their product roadmap. Automate the exchange of other supply chain documents such as purchase orders, advanced shipping notices and remittance advices once they’ve been added to the Peppol standard.
  • Can your Access Point provide other services? Some providers also offer Single Touch Payroll, SuperStream and electronic data interchange (EDI) solutions so you can bundle your services with the one provider. Some can even automate invoice reconciliation through an integration to your bank. Ask them what other services they offer.
  • Does your Access Point provider offer tools to onboard your customers and suppliers? eInvoicing is only beneficial if your customers and suppliers can exchange invoices with you. Here at MessageXchange, we offer a free service for you to onboard your customers and suppliers. It’s free for them to join and exchange invoices. Your Access Point may also have a service for you to test your messages before going live so you can make sure your message is compliant before you start sending eInvoices.
  • How does your Access Point make changes to their software and infrastructure? Find out their security and infrastructure procedures to make sure your business won’t be impacted when they perform security patches and releases.

Experience

Experience is important when comparing Access Point providers. Your Access Point will be your first point of call for information, so ask them how they keep on top of eInvoicing news and developments. Beyond experience in eInvoicing, it’s beneficial for your Access Point to have experience in related areas, such as electronic data interchange (EDI) for example. Providers with similar integration experience can provide insights and different approaches for your business to achieve its supply chain goals. They might have case studies you can look at. Ideal providers will have worked with businesses in your industry and location so they can provide you with insights and help along the way. If your Access Point has staff familiar with the countries you operate in, they’ll also be able to help you comply with the local requirements.

Pricing

Find out how your Access Point charges. Take the time to understand their model. Do they charge per message? On data consumed? The number or kilocharacters? Are their plans capped or uncapped? And look at their charging model for ongoing support. Be clear about what’s chargeable and what’s not. This will ensure you’re both on the same page and will reduce likelihood of conflict in the future. As well as the cost to you, ask your Access Point to provide you with a guide to work out the expected cost savings from eInvoicing. You can use this to set your expectations and to review the project once it’s been up and running for a while.

Support

Finally, look at the support they offer. Does their support model work for you? Support is crucial when implementing eInvoicing so make sure you‘re fully aware of what is included. Having support in the country you operate in makes your eInvoicing implementation much easier. Ask provider how quickly they respond to enquiries from customers. MessageXchange is the first Peppol-certified eInvoicing Access Point provider in Australia.

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E-invoicingSoftware providers

16/12/2019

eInvoicing Access Points: Building your own vs outsourcing it

Access Points are vital to eInvoicing. But why are they so important? As part of the four-corner model, Access Points send and receive trade documents between two parties. Organisations who want to connect to the Peppol eInvoicing network need an Access Point. Access Points go through a certification process set by the Peppol framework. It sets out the standards and interoperability requirements for providers. Certification ensures providers have the capability and compatibility to function within the network, to help maintain reliability and stability of the network and manage risks that might damage the trust of the network. Businesses have two options when it comes to Access Points:
  1. Choose to become an Access Point themselves by going through the certification process.
  2. Work with an Access Point service provider, such as MessageXchange, to connect you to the eInvoicing network.
In this blog we compare both options to help you decide what’s best for your organisation.

Cost and infrastructure

There are a number of costs and infrastructure requirements to become an Access Point. Costly hardware and infrastructure are one thing, but the associated maintenance costs are another substantial cost. There are also a number of compliance-related costs to become a Peppol-certified Access Point. Some include:
  • ensuring your software is compliant with Peppol requirements
  • security, which requires multiple controls, one of which is adherence to ISO 27001 or ASD/NZ ISM standards
  • adherence to messaging and e-delivery standards.
All these are required to obtain and maintain your Peppol certification. On top of this, Peppol charge a sign-up fee and an annual membership fee. When using an Access Point service provider, all the costs and requirements are covered by the provider, and the costs are often shared among all their clients. Overall, this makes it much less resource intensive and often much more cost effective.

Time

Becoming an Access Point is a very time-consuming process. The Australian certification process looks like this:
  1. Comply with operational framework The operational framework is a set of standards used to enable access to the eInvoicing network. The framework is split into four areas:
    • Legislation and policy: Ensure you comply with the implementation guidance and governance of the local authority.
    • Organisational interoperability: Ensuring you are able to comply with all requirements for sending invoices (and adjustment invoices) and recipient created tax invoices. You must demonstrate you can connect with all corners within the four-corner model. Unique business identifier requirements need to be adhered to so businesses can be found. A business address needs to be established for all businesses to be able to send and receive documents.
    • Semantic interoperability: Sets out requirements to ensure different applications can read and process information that is exchanged.
    • Technical interoperability: This involves standards and protocols to exchange information securely and reliably between businesses (directly or via service providers).
  2. Security compliance You’re required to implement security controls equivalent to ISO 27001 or ASD/NZ ISM standards, which can often be a lengthy and costly process in itself. You also need to implement encryption in transit and at rest, security monitoring and multifactor authentication.
  3. Join OpenPEPPOL Fill in registration form and pay the annual subscription.
  4. Expression of interest This is submitted to the local Peppol Authority, the Australian Taxation Office (ATO).
  5. Sign Transport Infrastructure Agreement (TIA) Following membership approval, you need to sign the Transport Infrastructure Agreement (TIA) with the ATO. You will also need to sign the New Zealand Annex 5 if you want to be certified in New Zealand.
  6. Complete due diligence Checks relate to business operations, senior staff, criminal record and insurance.
  7. Complete security questionnaire You must show evidence of adherence to ISO 27001 or ASD/NZ ISM, encryption requirements, security monitoring and multi factor authentication.
  8. Testing
    • Unit testing Verify your ability to send and receive Peppol documents in line with eDelivery Network specifications within your own environment.
    • Obtain test PKI certificate Request a test PKI certificate from OpenPEPPOL and fill in the form. This form will then be reviewed by both Peppol and your local Peppol authority.
    • Peppol acceptance testing – eDelivery network compliance This happens within the OpenPEPPOL test environment to ensure you comply with Peppol eDelivery network specifications.
    • Interoperability testing This involves working with a partner to test interoperability. In Australia, scheduling and identifying your partner is done by the ATO. You need to allow a lead time of two weeks for the ATO to find a suitable partner.
  9. Receive certification
  10. Proceed into production
By using an Access Point service provider, you don’t need to go through any certification process. Instead, you just need to provide some information for them to tailor their service to your business. This includes:
  1. Determining your file format If you’re software doesn’t produce the Peppol standard file format then your Access Point may be able to translate, or map, your file for you.
  2. Connection type Your Access Point will need to know what connection protocol you require for your software. This might be API, sFTP or something else.
  3. Business identifier Access Points require your business identifier to register you in the eInvoicing network. In Australia and New Zealand, the ABN and NZBN are needed to uniquely identify organisations when exchanging eInvoices.
Connecting to the Peppol eInvoicing network using an Access Point service provider can take less than a day.

Knowledge

Another fundamental aspect of becoming an Access Point is knowledge. You’ll need to keep up-to-date with developments and requirements from Peppol and the ATO. You’ll also need to connect with other Access Points and rectify any issues that come up to send and receive documents. All these things will require knowledgeable staff and dedicated resources. Access Point service providers take care of all developments as they come out. There’s no need to connect with Access Points, Peppol or the ATO. It’s all taken care of. Using an Access Point service provider can save businesses money, time and hassle when connecting to the Peppol eInvoicing network.

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E-invoicingSoftware providers

28/11/2019

Why should software providers become eInvoicing-capable?

eInvoicing continues to gather momentum and increase uptake around the world due to its many benefits. These include:
  • improved cash flow and quicker payments
  • easier processing and cost savings
  • fewer errors
  • direct and secure messaging
  • available for every business size.
A business’ software plays a big part for those looking to implement eInvoicing. Businesses will need software that is eInvoicing-capable. What’s in it for software providers? We look into some of the reasons software providers incorporate eInvoicing into their product.

What’s in it for software providers?

Retaining and acquiring customers

One of the clear reasons is retaining existing customers and the potential to acquire new customers. Software providers are always looking for ways to provide more functionality and improve features for their clients. Becoming eInvoicing-capable increases existing functionality for their customers. It also provides additional value to help software providers differentiate themselves from competitors.

Allow customers to trade seamlessly internationally

The Peppol eInvoicing network currently has 33 countries using the standard, allowing businesses around the globe to send and receive trading documents such as eInvoices. This means software providers that become eInvoicing-capable also allow customers to trade seamlessly with partners overseas. This is a huge benefit for existing and potential customers who currently trade internationally. This also benefits businesses looking to expand around the world.

Early payments from the Australian Government

The Australian Government has announced its plan to make payments within five days for contracts under $1 million from January 2020. This is set to increase demand for eInvoicing, which makes it a big potential market for software providers. Many smaller suppliers will be looking to implement eInvoicing to benefit from of this incentive. The Australian and New Zealand Governments’ push to move more suppliers to eInvoicing will also help drive demand in the region. As larger businesses look to connect to the eInvoicing network, demand will grow even further. Globally, we are seeing 20% growth annually in eInvoicing uptake.

What is the process for software providers to integrate?

There are a number of options for software providers to make their products eInvoicing-capable. The process normally consists of:
  1. Choose an Access Point Access Points connect companies to the Peppol eInvoicing network. They send and receive the messages and pass them on to the recipient’s Access Point. There are options when it comes to Access Points:
    • Choose to become an Access Point yourself by going through the certification process with Peppol and local Peppol authority.
    • Work with an Access Point provider, such as MessageXchange, to connect you to the eInvoicing network. Working with an Access Point provider is often the easiest and quickest way to connect to the network, and in many cases is the most cost efficient.
  2. Determine your file format The Peppol eInvoicing network exchanges messages in the Peppol standard. There are two ways to comply:
    • Produce the Peppol file format from your software.
    • Work with an Access Point provider to translate your software file to a Peppol compliant file.
  3. Error messaging As part of sending and receiving eInvoices, you’ll need to be able to display any error messages. You can choose to show these error messages in your own software. Some Access Points offer a solution for displaying error messages that don’t require development on your side.
  4. Customer onboarding In order to enable your customers for eInvoicing, their organisation details will be needed for the Access Point to register businesses. In Australia and New Zealand, the ABN and NZBN are needed to uniquely identify organisations when sending and receiving eInvoices.

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E-invoicing

25/11/2019

Traditional invoicing and eInvoicing: A comparison

We’re beginning to see a big change in the way we do invoicing in business. What used to be a very manual, paper-based process is now becoming automated and digital with the introduction of eInvoicing. What is eInvoicing? To put it simply, it is the electronic sending and receiving of invoices in a structured data format directly between software applications. This isn’t sending a PDF and or sending an email, eInvoicing is software to software and 100% automated. By comparing traditional invoicing and eInvoicing we can see just how efficient eInvoicing can be for both buyers and sellers in the following areas:
  • Processing and payment
  • Costs
  • Visibility, transparency and accuracy of information
  • Security

Processing invoices

Traditional invoicing

In traditional invoicing, the process of creating invoices and receiving payments can be lengthy. Often it looks like this:
  1. Create the invoice
  2. Print and post it (or send via email)
  3. Buyer receives and sends it to their accounts team
  4. The invoice is downloaded, reviewed and approved
  5. The invoice is paid
  6. The invoice is archived.
The process involves a lot of manual handling and re-keying of information, causing errors in invoice data, slowing processing and running the risk of invoices being sent to the wrong person or company. Traditional invoicing is also very labour and time intensive, so when staff are working on multiple tasks, the process can be slowed down even further. All these elements can create huge delays in payments and reduce cash flow for sellers, which is especially problematic for smaller businesses. Overall, paper invoices are estimated to take 23 days to process when the process runs smoothly. This can blow out to up to 90 days when they run into errors.

eInvoicing

eInvoicing works a bit differently. It looks like this:
  1. The seller finds their purchase order (PO) in their software and creates an invoice. The information is brought across from the PO. The seller sends the invoice electronically from their software. The invoice is sent, almost magically, through Peppol network directly to buyer’s software.
  2. The buyer’s software matches the received invoice against the PO for payment authorisation.
The process is streamlined through automation for both the seller and buyer. The issues presented by traditional invoicing are eliminated by significantly reducing redundant manual processing. eInvoicing has been shown to be 60-80% more efficient than paper-based processing greatly reducing payment times. One source calculates the average for processing an eInvoices is just 5 days . By reducing processing times with eInvoicing, sellers receive payment faster and buyers streamline their processes and business operations.

Costs

Traditional invoicing

There are a few different costs that are attributed to the traditional invoicing processing. For both buyers and sellers, the main costs are:
  1. Printing: even if using PDFs, invoices may be printed. Costs include paper, ink and even printer maintenance.
  2. Labour: you need people to process invoices and this only increases as your business grows.
  3. Postage
  4. Filing
Overall, costs have been estimated to be $30.87 to process a paper invoice and $27.67 for PDF invoices.

eInvoicing

Costs are much lower when we look at the costs associated with eInvoicing. Many traditional invoicing costs are reduced or eliminated altogether because of reduced manual processing and electronic sending. It’s been calculated that eInvoices are approximately 70% cheaper than traditional invoicing. On top of this, buyers can often stick to the payment terms of their suppliers, reducing late fees and even benefiting from early payment discounts.

Visibility, transparency and accuracy of information

Traditional invoicing

Traditional invoicing can require multiple platforms and software and sometimes complicated physical and electronic filing systems. This can make it very difficult to manage, maintain and retrieve records. This can make reporting harder, which impacts the accuracy of your business performance results and the data used in decision making.

eInvoicing

eInvoicing allows you to use a single piece of software for creating and processing invoices. This makes it much easier for businesses to have visibility and transparency of their payables and receivables. The need for collating information from multiple systems and paper documents is significantly reduced. As well as this, the reduced risk of errors from manual processing increases the accuracy of data.

Security

Traditional invoicing

There are a number of security issues that can occur from traditional invoicing.
  • Fake or comprised invoices: details on invoices can be changed or altered without knowledge from either party.
  • Billing scams and fraud: invoices can be sent to misleading sources, causing money loss.
This is commonly because the formats the documents are sent in allow them to be easily altered. Plus, sending invoices through mail or email means they’re easily intercepted, sent to the wrong person, or send fraudulently.

eInvoicing

eInvoicing uses the Peppol network, which requires buyers and sellers to have a certified Access Point send and receive invoices. The Peppol network adheres to a secure and reliable framework that all parties must comply with. eInvoices are sent in a pre-defined format which can’t be changed or altered. Archiving using eInvoicing is much easier to track, improving your audit trail. Comparing both traditional invoicing and eInvoicing shows significant efficiencies when using eInvoicing. If you’re interested in finding out how eInvoicing could work for your business, request a call from one of our experts today!

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E-invoicing
Single Touch Payroll search

20/11/2019

New eInvoicing legislation has become law. What does it mean for you?

More than 1.4 billion invoices are sent every year in Australia and New Zealand. With that in mind, it is easy to understand why people, especially those in the Australian Government, see eInvoicing as a game changer.

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. The eInvoicing model is based on four-corners, where corners one and four are the supplier and customer two and three are Access Points. These Access Points connect to each other to exchange eInvoices. You might also hear about Peppol in relation to eInvoicing. Peppol is a standard for eInvoicing, developed by OpenPEPPOL, an international standards body. It defines the eInvoice message format, as well as connection protocols and governance. The Peppol network is also able to exchange more than just eInvoices. Purchase orders are being reviewed and localised for Australia and New Zealand with more expected to be launched in the future.

What are the benefits of eInvoicing?

  • Easier invoice processing
  • Cost savings
  • Faster invoice payments
  • Fewer errors
  • Exchange of invoices directly to and from software
  • Secure
  • Available for businesses of every size
  • 60–80% more efficient than paper-based processing
  • Could save Australia and New Zealand more than $10 billion a year
  • The US Government has already seen eInvoicing save them more than US$450 million in processing costs alone.

A round up of developments so far:

  • In March 2018, the Australian and New Zealand governments agreed to look at common approaches to eInvoicing under the Single Economic Market (SEM) agenda. This was formalised on the 25th of October 2018 when the Australian Assistant Treasurer and the New Zealand Minister for Small Business signed the Trans-Tasman Electronic Invoicing Arrangement.
  • In February 2019, both governments announced their intention to adopt the Pan-European Public Procurement Online (Peppol) interoperability framework for eInvoicing.
  • In November 2019, the Australian Government announced that as of the 1st of January 2020, contracts valued up to $1 million will be paid in five days or face interest on late payments, as long as both the seller and the agency use eInvoicing.

What’s in the new eInvoicing legislation?

On the 29th of October 2019, legislation became effective allowing an Australian Peppol authority to be established by the Australian Taxation Office (ATO). The ATO put in their application to OpenPEPPOL to begin the membership process and was announced as a Peppol member on the 31st of October. Around the same time, the Ministry of Business, Innovation and Employment (MBIE) become the New Zealand Peppol Authority. As a result of the new legislation, the ATO and MBIE can now start to certify Access Points in Australia and New Zealand respectively. The ATO has begun working with software and eInvoicing solution providers to get the ball rolling. This is an important development as it means Australian and New Zealand businesses can connect and start to send invoices through the eInvoicing network as soon as Access Points have been certified.

What does this mean for you?

To access the eInvoicing network and start reaping the benefits of eInvoicing, businesses will need an Access Point. Software providers should find their own Access Points, or if your software doesn’t have an Access Point, you can find one directly. You can choose to become an Access Point yourself by going through the certification process with Peppol or you can work with an Access Point provider, such as MessageXchange, to connect you to the eInvoicing network. Working with an Access Point provider is the easiest and quickest way to connect to the network, and in many cases is the most cost efficient. Some Access Points can also translate files into the Peppol eInvoicing format. For software providers: Now is the time to start engaging Access Points to get your customers ready for eInvoicing. For businesses: Speak to your software provider to find out their plans for eInvoicing. If they’re not providing an Access Point, start getting in touch with Access Point service providers to prepare for eInvoicing.

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