What are the benefits of eInvoicing?

eInvoicing is fast gaining traction across the globe. Peppol eInvoicing is already the standard in many European countries, with Australia and New Zealand following suit.

In short, eInvoicing is a secure, standardised way to digitally send invoices between businesses and their customers.

Unlike PDF or paper invoices, an eInvoice is directly sent from one accounting system to another – offering a fast, secure and cost-effective way to send and receive invoices.

Let’s take a closer look at the benefits of eInvoicing.

eInvoicing minimises manual data entry and enables automated invoice processing, saving time and money.

According to the Australian Taxation Office (ATO), paper and PDF invoices cost an average of between $27 and $30 to process, whereas eInvoicing reduces this cost to less than $10 an invoice. That’s up to 66% in estimated cost savings for each invoice.

eInvoicing is more time- and cost-efficient than traditional invoicing for several reasons:

For all Peppol eInvoices, sender and receiver details are validated, audit logs are kept and stringent protocols are followed to reduce the risk of invoice fraud or scams. The Peppol network has multi-layered security requirements including encryption, security certification (ISO27001 or ASD/NZISM) and Know Your Customer (KYC) compliance.

eInvoices also can’t be forwarded by email, which means they can only be received by the person who’s supposed to receive them. This minimises the risk of sensitive data being intercepted or compromised.

eInvoices are guaranteed to reach their intended recipient, reducing the risk of invoices being overlooked or misplaced and facilitating faster payment processing.

Businesses and government agencies on the Peppol network may also prioritise payment processing for Peppol eInvoices. In Australia, for example, government agencies pay eInvoices in five days, where both the supplier and buyer use Peppol eInvoicing.

With no manual data entry required, eInvoices minimise the risk of errors and ensure a high level of data integrity. Businesses that use eInvoicing can make financial decisions with the confidence that their invoice data is accurate and up to date.

eInvoicing through the Peppol network facilitates trade with any other Peppol participant globally. With Peppol, businesses of any size can use eInvoicing, regardless of the accounting software they use. The only requirement is that the supplier and customer are part of the Peppol network.

Once connected to the network, you can easily exchange eInvoices with companies and government agencies all around the world.

Tickstar (a subsidiary of Xero) builds, delivers and maintains the technology infrastructure for businesses, government agencies and accounting software platforms to send and receive eInvoices via the Peppol network.

To get started eInvoicing, you can register with the Peppol network directly from within Xero or connect your accounting software to the Peppol network via the Tickstar access point.

Got questions? Get in touch to discuss adopting eInvoicing for your business.