The Australian Taxation Office has hailed the start of eInvoicing week, which recognises the new digital invoicing system and promises to save time and money for small businesses across Australia (ATO).
eInvoicing Week 2022 will take place from August 15 to August 21, 2022. Businesses can learn more about eInvoicing, a fast and secure method of sending and receiving invoices that can speed up payments and enhance cash flow.
During eInvoicing Week, businesses will hear about the benefits of eInvoicing, how to get started with eInvoicing, and other subjects from software suppliers, industry and professional associations, and government agencies.
Furthermore, according to new research from Xero, the global small company platform, nearly half of Australian small businesses questioned would likely register for eInvoicing if government agencies and large corporations began sending eInvoices.
What is eInvoicing?
Electronic invoicing, often known as eInvoicing, is the electronic exchange of invoices between accounting software. An eInvoice is sent directly to or from the accounting platform of another company or government agency using the secure Peppol eInvoicing network, unlike sending a PDF or online invoice via email.
The poll of over 500 Australian small businesses and sole traders looked at the major pain points of manual invoicing and their comprehension of eInvoicing and willingness to use it. Almost half of those polled (48%) stated they would consider registering if high-volume government institutions like ASIC, the Australian Taxation Office (ATO), or state transportation authorities sent eInvoices.
It was also shown that 46 per cent of respondents would likely sign up for eInvoicing if their regular large company suppliers (e.g., Telstra, Officeworks, Woolworths) sent eInvoices straight into their accounting system.
“eInvoicing reduces administration and errors while accelerating payment for Australia small businesses, but they need lots of entities on the eInvoicing network to make registering worthwhile,” said Simon Foster, GM Product – eInvoicing at Xero.
“This is a terrific opportunity for governments to use the volume of invoices it sends in a way that helps cut red tape, speed up payment times and increase security for small businesses.
Government can lead the way with registrations by replacing multi-step processes like ASIC annual review fees, ATO payment plan statements and state vehicle registration fees with eInvoices sent directly into the software of the small business, as we have seen in leading digital economies overseas.”
“Over the last few years, small businesses have accelerated their digitisation journey to keep pace with a changing world. We know small businesses are time-poor, but they have the willingness to adopt new technology. We hope that eInvoicing week will give small businesses access to subject matter experts so that they can understand the positive impact it could have on their invoicing processes,” added Foster.
How to start eInvoicing
As per ATO, eInvoicing will help your small business save time and simplify invoice management. It’s a standardised and easy way to send and receive invoices between the buyer’s and supplier’s software through a secure network.
You and your trading partners can use any software for invoicing. You can connect to the eInvoicing network called Peppol. It’s not mandatory to use, but there are many benefitsof Peppol eInvoicing for suppliers and buyers.
Cost of eInvoicing
For software users, the cost will depend on your software product. eInvoicing may be included in your subscription or be available as a plug-in or app that integrates with your software.
For non-software users, there are free and low-cost web portal solutions available depending on your business needs.
Keep up to date with our stories on LinkedIn, Twitter, Facebook and Instagram.