E-invoicing is growing in popularity around the world but particularly in Australia and New Zealand. Now is the time to get started with e-invoicing. Not just because of the benefits e-invoicing brings, but also because of the financial incentives. Many businesses are also looking to improve their reporting and analytics through the use of e-invoicing. So, here are three reasons to act now for e-invoicing.
We’ve seen organisations promote discounts or faster payments for e-invoices. A prime example is the Australian federal government announcing 5 day payments to suppliers who send e-invoices for contracts less than $1 million. For businesses with poor cash flow, particularly small businesses, this can make a huge difference.
And even if you’re not able to secure guaranteed discounts or shorter payment terms, the average e-invoice is processed in 5 days (compared with 23 days for a regular invoice).
Another reason to jump on e-invoicing is that it makes it really easy to get financial data for more accurate decision making. E-invoicing significantly improves the accuracy of your data because of the automation and reduced manual inputting.
With e-invoicing, you can generate reports and analytics in an instant. E-invoicing can capture data such as:
- the number of invoices sent and received
- the value of invoices sent and received
- the number of invoices rejected and accepted.
It allows you to monitor everything from the convenience of one platform. And because it’s digital, you can access your financial data from anywhere with internet.
Efficiencies to your business
The benefits e-invoicing brings to both buyers and sellers is also a reason to act now and implement. These include:
- 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’re interested in learning more about getting your teams ready for e-invoicing, request a call from our e-invoicing experts below.