An introduction to eInvoicing for New Zealand businesses

eInvoicing, or electronic invoicing, is the process of creating, sending, receiving, and processing invoices in a digital format. Unlike traditional PDF or paper invoices, an eInvoice is transmitted directly from one piece of software to another, eliminating the need for manual handling. This process offers a fast, secure, and cost-effective way to manage invoices.

eInvoicing offers a myriad of benefits to businesses, particularly when it comes to enhancing security. eInvoicing significantly reduces the risk of email invoice fraud—a growing concern for businesses worldwide. By automating the invoicing process and bypassing email systems, eInvoicing ensures that invoices are sent directly and securely between businesses.

Beyond security, eInvoicing offers several other advantages:

Less admin. Automating the invoicing process reduces the administrative burden, freeing up valuable time for your business.

Faster payments. As at August 2024, it takes an average of 25.1 days* for a New Zealand small business to be paid. By eliminating manual processing—along with the errors and delays it can bring—eInvoicing accelerates payment timelines, improving cash flow.

Cost savings. Processing a paper invoice costs businesses around $26*, while an emailed PDF invoice costs $23. In contrast, eInvoicing can reduce this cost to less than $10, thanks to the time saved by reducing manual handling.

Greater financial visibility. With eInvoicing, businesses can gain real-time insights into their financial transactions, enabling more accurate forecasting and decision-making.

Global connectivity. As governments worldwide strive for greater transparency in financial transactions, New Zealand businesses that trade internationally will be impacted. An example of this is the European Union’s ViDA (VAT in the Digital Age) initiative, which will require New Zealand-based businesses that do business with the EU to meet compliance requirements, even if these transactions are conducted online (for example, selling products through a website or providing professional services to an EU-based business). Adopting eInvoicing is a step that businesses can take to ensure they are compliant with global regulatory requirements.

Added benefits for software providers. If you’re a software provider with invoicing functionality, integrating eInvoicing into your product offers your customers greater security as well as a number of other benefits.

As more governments and businesses adopt eInvoicing, New Zealand is poised to see an increasing shift toward digital invoicing solutions. The trend toward global financial transparency, as exemplified by initiatives like ViDA, will continue to drive eInvoicing adoption. For New Zealand businesses, this means staying ahead of compliance requirements and leveraging the efficiency and security benefits of eInvoicing.

In the near future, we can expect more businesses—both large and small—to adopt eInvoicing, driven by its clear advantages and the growing global demand for transparency and efficiency in financial transactions.

New Zealand businesses should prepare for eInvoicing by evaluating their current invoicing processes and identifying areas where automation can reduce costs and improve efficiency. Partnering with a trusted eInvoicing provider like Tickstar ensures that your business is not only compliant with local and international standards but also benefits from a smooth transition to digital invoicing.

Tickstar is at the forefront of eInvoicing adoption in New Zealand. As a subsidiary of Xero, Tickstar understands the unique needs of businesses of all sizes. Whether you’re a small business or a large organisation, contact Tickstar to find out how you can get started with eInvoicing and future-proof your invoicing processes.

*Source: MBIE (Ministry of Business, Innovation & Employment)