If you have been keeping up with business trends in Australia, you will have noticed that e-invoicing is the next upcoming business technology which is set to take over. Even the Australian Federal Government has pushed towards a nation-wide adoption of e-invoicing by allocating $15.3 million to its development in the 2021 Federal budget.
But what exactly is e-invoicing and how may it benefit businesses? Keep reading to find out!
What is e-invoicing?
E-invoicing is a digital system which allows businesses to send their invoices through their financial systems as data - where specifically designed software will be able to scan and receive the data automatically.
E-invoicing is different from regular paper-based invoices or PDF invoices sent through email as it involves automatic data transcription and eliminates the need for manual data interpretation.
What are the top 3 benefits of e-invoicing?
There are many benefits to adopting an e-invoicing system in a business, with the following three being the most noteworthy.
- Save time and money
By not having to manually scan the data from invoices, businesses will be able to save the time and money it usually takes to process invoices. By the Australian Taxation Office’s calculations, the difference is almost three times per invoice, which certainly adds up over the long run.
2. Increase security
E-invoicing, especially in the case of systems supported by the Australian Government, increases security by recording the ABNs of invoice senders and receivers. This reduces the risk of faulty invoices or scams.
3. Increased efficiency
E-invoicing is also overall, an efficient system. Digital invoices will not get lost in the post, and there is no manual scanning of documents required to waste time. The standardised information requirements also makes the information simple to acquire and international invoicing is also much easier.
E-invoicing is certainly the future of the business world, as it provides industries with many benefits with little to no downside. If you are looking to implement e-invoicing into your own business, working with an accountant may help.