What does eInvoicing entail?
eInvoicing is a modern and secure approach to exchanging invoices between businesses. It operates through a global public network called Peppol, with the Australian Peppol Authority overseen by the ATO. While eInvoicing is widely adopted for efficiency, it is not obligatory.
To utilise eInvoicing, both buyers and suppliers must be registered with Peppol. This registration process can be completed through compatible accounting software, which offers eInvoicing functionality. Larger businesses may need to explore alternative options to connect to the network.
The advantages of eInvoicing lie in its enhanced security and time-saving features. It eliminates the reliance on traditional methods like email or postal mail, resulting in a more secure transmission. Moreover, manual data entry and the need to scan or attach PDF copies of invoices are reduced significantly. When an eInvoice is received, it can be approved before preparing for payment. The Institute of Certified Bookkeepers diagram illustrates the disparity between the current invoicing process and the simpler eInvoicing process.
To ascertain if your suppliers or customers are eInvoicing-enabled, consult the Peppol Directory, where registered contacts are listed. The ATO website provides a register of software products equipped with eInvoicing functionality, encompassing accounting packages and online web portals. Four popular eInvoicing-ready accounting packages are Xero, MYOB, Quickbooks and Reckon. Notably, Xero and MYOB do not impose additional charges for eInvoicing, which is advantageous. Reckon offers monthly packages that include eInvoicing.
It is completely understandable if you are not ready to embrace eInvoicing or require more information. Although large companies and government departments have been utilizing eInvoicing for some time, smaller businesses are gradually adopting this novel method. The uptake of eInvoicing is continuously increasing, but it may only be necessary or suitable for some businesses at its current stage of development.
Take the next step towards efficient eInvoicing by reaching out to Katia Chehade.