Electronic invoicing (e-invoicing)
More and more Australian small businesses are replacing paper invoicing with electronic invoicing (also called e-invoicing) for business-to-business and government transactions.
How does e-invoicing work?
E-invoicing allows businesses to exchange invoices directly between accounting systems on a secure network. It differs from just sending an invoice by email. You can both send and receive invoices via e-invoicing if you have the right software and your creditor or debtor is registered for e-invoicing.
All federal government agencies need to transition to e-invoicing by 1 July 2022. State government agencies are also progressively converting to e-invoicing. For example, New South Wales government agencies must switch by 1 January 2022.
The benefits of e-invoicing
There are several benefits of going digital via e-invoicing, including:
reducing the postage and handling costs of sending paper invoices.
speed of delivery to creditors (instantly, versus the inevitable ‘snail mail’ delay).
increased security/less risk of fraud (as e-invoices are sent via a secure computer network)
faster payment times (as the invoice is automatically entered into the receiver’s accounting system ready to be approved).
reduced data entry errors (as invoicing information is automatically extracted from accounting systems).
Does accounting/bookkeeping software have e-invoicing capabilities?
Accounting/bookkeeping software providers like Xero have e-invoicing functionality as a standard feature. Xero software can exchange e-invoices with both Xero and non-Xero accounting/bookkeeping software.
How we can help
If you want to make managing your business finances easier, our team at Scorpion Bookkeeping can help. We provide cost-effective bookkeeping support services to a diverse range of clients in South Australia, New South Wales and Victoria.
And if you’d like to implement cloud-based Xero bookkeeping software, we can help you with that as well. We are a Xero-certified partner.
Contact us today for a free, no-obligation consultation to find out how we can help your business!