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    What is the Government's EInvoicing Initiative?

    Published by allsorted on
    Xero einvoicing

    We are very excited about the introduction of eInvoicing because it will save you time and money. It is another huge step towards the automation of your bookkeeping processes. Once fully implemented it will replace Autoentry (the invoices email address that you currently use) and will allow you to send and receive invoice instantly.

    The Government's eInvoicing initiative will make your bookkeeping more efficient, accurate, secure and cost-effective.

    If you register now you can opt-in to receive your Xero invoice as an eInvoice. This means:

    • No more having to download and email through your invoice, and
    • A saving of $0.30 per month as your Xero invoice no longer needs to be processed via AuroEntry.

    Click here for instructions on how to save time and money by receiving your Xero invoice directly into your Xero file?

    What is eInvoicing?

    eInvoicing is the digital exchange of standardised invoice information between suppliers' and buyers' software through the Government's secure Peppol network.

    It is different to sending and receiving invoices as PDFs and emails, as is currently the case for yours and most other businesses.

    With eInvoicing:

    • Suppliers won't need to print, post or email paper-based or PDF invoices
    • Your Bookkeeper won't need to manually enter or scan invoices into Xero
    • You will connect once and immediately be able to deliver invoices securely to other business' accounting software, no matter what accounting package they use.

    Benefits of eInvoicing

    Save time and money

    eInvoicing reduces manual data entry and enables the automation of a key business process. It can save you time and let you focus on running your business.

    eInvoicing will also help reduce your administration costs. With the implementation of Autoentry by All Sorted in 2018, we were able to reduce the cost of processing paper and PDF invoices from between $20 and $30 to around $10 for our clients. eInvoicing can reduce this to less than $3 an invoice.

    With eInvoicing, you:

    • as a buyer, don't need to scan and manually enter invoices into your software
    • as a supplier, don't need to create paper or PDF invoices and then print, post or email them
    • can automate invoice processing through standardised, better-quality data
    • reduce delays caused by invoice errors and invoices being misplaced, incorrectly addressed or going missing
    • reduce the time spent following up late invoices.

    While we still need to apply our internal checks and assurance processes before paying invoices, you will see cost savings due to automation of manual administrative tasks and faster processing.

     

    Reliable and secure

    According to the Australian Competition and Consumer Commission, payment redirection and false billing scams were some of the most common scams reported, and we are seeing an increasing number of them. They are becoming more and more sophisticated and harder to detect every year.

    eInvoicing can help make your business more secure in several ways:

    • eInvoices are exchanged securely through the Peppol network by approved access points, using the buyer's and supplier's ABNs.
    • The risks of fake or compromised invoices, email scams and ransomware attacks are lower compared with posted or emailed invoices.
    • There is no risk of lost invoices.
    • You keep control of invoice processing. This includes verifying and approving invoices.
    • eInvoices can only be viewed by the supplier, buyer and digital software provider. eInvoices don't go through the ATO and they can't view them.

     

    Reduce payment times

    eInvoicing can improve your cashflow with faster processing and quicker payments.

    Australian Government agencies are paying eInvoices in 5 days, where both the supplier and buyer use Peppol eInvoicing. For more information, see Australian Government Supplier Pay On-Time or Pay Interest PolicyExternal Link.

    State governments are also encouraging eInvoicing. The NSW Government mandated eInvoicing for all government agencies from 1 January 2022. Other states are working on their approach.

     

    Better for the environment

    eInvoicing can help your business reduce the use of paper and other resources when managing invoices. eInvoicing also reduces energy consumption and greenhouse gas emissions, making it an environmentally friendly alternative to printing and posting paper invoices.

    For companies who have environmental, social and governance targets, eInvoicing can help you achieve them.

     

    Connect once, trade with many

    Businesses only need to connect once to trade with anyone on the Peppol network.

    • Businesses can use eInvoicing regardless of their size or software they use.
    • All that's needed is that both the supplier's and buyer's software are connected to the Peppol network.

    eInvoicing is Available now?

    There are thousands of businesses already using eInvoicing and we would like to have all of our clients registered and using the system before the end the 2023 financial year.

    Large businesses, such as Bunnings, Telstra, Google and many others have recognised the potential savings to their businesses and have already implemented eInvoicing.

    Here is Xero's explanation of eInvoicing and how it works within Xero

    It is free and easy to use and you are already set up to use it. Why not start using eInvoicing now.

    Check out All Sorted's listing on the Peppol directory and also see which of your other suppliers are already using the system.