eInvoicing reduces manual data entry and enables process automation. It can save you time and let you focus on running your business.
eInvoicing will also help reduce your administration costs. Paper and PDF invoices generally cost between $27 and $30 to process. eInvoicing can reduce this to less than $10 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 you still need to apply your internal checks and assurance processes before paying your invoices, you may see cost savings due to automation of manual administrative tasks and faster processing.
According to the Australian Competition and Consumer Commission, payment redirection and false billing scams were some of the most common scams reported. More than $227 million was lost to these scams in 2021.
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 we can't view them.
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.
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.
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.
- Large businesses can add Peppol to their trading networks to help their SME trading partners to exchange invoice data directly from their software and help them reduce admin costs.