E-invoicing is taking off. Businesses are realising the benefits and starting to reap the rewards. Here are some reasons to get ready sooner rather than later and not risk getting left behind.
Start seeing the benefits now
If you’re a supplier to a government agency that’s e-invoicing enabled, and have a contract less than $1 million, you have the benefit of getting paid in 5 days. Government suppliers are already enabling e-invoicing to help their cash flow through faster payment.
So how much do you stand to save from implementing e-invoicing now? Sources show a paper invoice or PDF invoice costs around $30.87 and $27.67 respectively to process, and an e-invoice costs only $9.18. Say you send or receive 10 e-invoices a week, that’s a weekly saving of $184 to $217.
Be in a position to say yes to e-invoicing customers straight away
If you’re asked to issue e-invoices, you can do so straight away. You won’t need to spend time finding a solution. If you’re a supplier to a government agency, that’s e-invoicing enabled, and have a contract less than $1 million, you also have the benefit of getting paid in 5 days. Government suppliers are already enabling e-invoicing to help their cash flow through faster payment.
Get enabled before the rush
With an e-invoicing mandate set for all federal government agencies, and possibly other groups soon after, a lot of organisations will be looking to sign up. This will inevitably lead to a rush in demand and possible delays in implementation. This will also lead to suppliers getting involved in the rush. Now is a good time to get enabled if you happen to be a supplier to a government agency or a supplier to an agency.
Being prepared for the possible mandate
You might have heard about a potential e-invoicing mandate for businesses in Australia. The mandate is currently being reviewed by business leaders and industry experts. However, it’s likely to happen in some form, so getting in early will help you avoid any delays and reap the benefits sooner.
How do you get started?
E-invoicing doesn’t need to be complicated:
- Find out if your existing software is e-invoicing-capable
- If not, talk to an e-invoicing service provider like MessageXchange
- Fill in a form with your business details and work out which products works best for you
- Get connected to MessageXchange
- Start exchanging e-invoices
And don’t forget, e-invoicing helps businesses:
- Cost savings
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 e-invoice.
- Easier invoice processing
Removes the need for unnecessary data entry – the invoice just appears in your software.
- Fewer errors
Because much of the data entry is removed.
- Exchange of invoices directly to and from software
To reduce the risk of invoices going astray, reduce the time to receive them and reducing data entry errors.
Security measures, like encryption at rest and in transit, are implemented throughout the e-invoicing network so your data remains secure along the way.
If you want to learn more about implementing e-invoicing in your business, get in touch with our team.