E-Invoicing is the digital exchange of invoice information that you can use for your debtors and creditors, even if they are on a different software. Here is a quick run down of how this works:
What is e-Invoicing and how does it work?
- A supplier would generate an invoice for the customer.
- The invoice information goes through a secure eInvoicing network called Peppol and validates the NZBN number to ensure this is the correct customer, before it goes into the customers software. (The customer also needs to be registered on the eInvoicing network in order to receive this).
How can I get eInvoicing?
- First you need to check if your software has been registered with eInvoicing. You can check if your software is is supported here. You will also need a New Zealand Business Number.
- Register to receive eInvoices through your software.
- Follow any steps your software prompts you to do to get your system ready to send/receive eInvoices.
- There is a list to check if your customers and suppliers are registered for eInvoicing, which you can view here.
Why get e-Invoicing?
- Reduced admin / Improved efficiency: The person processing the supplier invoices will no longer have to scan or email each invoice into your accounting software. The eInvoicing network helps automate the bill entering side by extracting data from the invoice, which can save time and reduce errors. It will also save money if you are still printing paper invoices.
- Faster payments: Electronic invoicing can speed up the payment process. Since e-invoices are delivered instantly and there is less chance of missing invoices, businesses can sometimes receive payment quicker.
- Enhanced security: E-invoicing can provide better security and privacy for businesses. They minimise the risk of fake/compromised invoices, sender and receiver details are validated, audit logs are kept, and strict protocols are followed to ensure invoices remain secure while they are sent across the network, for greater accuracy, security, and peace of mind.
For more about eInvoicing, click here.