The recent CrowdStrike global tech outage significantly impacted banks, supermarkets, airports, and many other businesses, leading to costly ramifications. Many businesses, including retailers and supermarkets, were forced to either close or operate in a limited capacity, causing delays in accounting processes.
Transactions via EFTPOS, online orders, and self-serve checkouts could not take place. Some businesses had to rely on paper receipts due to the inability to process transactions on computers.
Home Affairs Minister Clare O’Neil described the impact on Australian businesses as “significant,” with some still in the “recovery phase.” The outage has raised concerns about the reliability and continuous use of conventional invoicing methods, highlighting the crucial role of cybersecurity in ensuring smooth invoicing processes.
Cybersecurity issues are neither new nor unexpected. This incident underscores a known issue within our highly interconnected supply chains: a disruption to any key supplier can have extensive repercussions, affecting a broad spectrum of systems and services. It highlights the critical need for more resilient eInvoicing systems to safeguard business operations.
Diversified Accounting Systems
To mitigate future risks, businesses should consider diversified accounting systems. Using eInvoicing systems can reduce the risk of single points of failure, ensuring resilience. Cloud-based eInvoicing solutions offer enhanced resilience due to robust data storage, recovery, and business continuity plans.
A comprehensive cyber resilience plan is essential for businesses of all sizes. Companies must test their infrastructure and have multiple fail safes in place to strengthen their defences against outages. Typically referred to as a cyber resilience plan, this approach is crucial for maintaining security. However, it is often impossible to simulate the full scale and impact of potential issues in a controlled environment without testing the actual network. This makes thorough testing vital for effective cyber resilience.
Enhanced Security with eInvoicing Solutions
Cloud-based eInvoicing solutions not only enhance resilience but also offer advanced security measures to protect sensitive financial data. These systems are designed with multiple layers of security, including encryption, secure data transmission, and regular security updates to protect against evolving threats. This is particularly true for businesses adopting the Peppol network, a standardised framework that enhances the security and efficiency of eInvoicing.
One of the key benefits of eInvoicing solutions within the Peppol network is the unique identification with a Peppol ID. Every organization registered in the Peppol network is assigned a unique Peppol ID, ensuring that the sender of an invoice is always clearly identified, leaving no room for fraudulent activities. This unique identification provides an additional layer of security and trust in the eInvoicing process.
Encrypted Data Transmission
Another significant advantage of using eInvoicing solutions, especially those compliant with the Peppol network, is encrypted data transmission. All data transmitted through the Peppol network is encrypted, ensuring that sensitive information remains secure during transmission. This robust encryption protects your financial data from unauthorised access and cyber threats, making the Peppol network a reliable choice.
By leveraging the power of the cloud and the Peppol network, businesses can ensure that their invoicing processes remain secure, even during widespread IT disruptions. The integration of eInvoicing systems with existing accounting software is seamless, providing businesses with a reliable and secure method for managing their financial transactions.
Global Connectivity and Standardisation
Under the Peppol network, SMEs can gain immediate access to a vast network of organisations across various countries. With a single connection, you can interact with a wide range of businesses and public administrations, facilitating seamless and efficient international trade and communication. Peppol also standardises the format of invoices and other business documents, ensuring consistency and compatibility across different systems and organisations. This standardisation simplifies the exchange process, reduces errors, and improves efficiency in handling electronic documents.
Building Trust with Robust Security Protocols
The commitment to security by providers of eInvoicing solutions is unwavering. They undergo rigorous security reviews and tests to ensure compliance with industry standards and to maintain their status as trusted add-ons for major cloud accounting solutions. This continuous assessment helps in identifying and addressing potential vulnerabilities, ensuring that the integration remains secure and reliable.
For instance, these eInvoicing solutions are often required to pass stringent security checks before being approved and listed on cloud marketplaces. This level of scrutiny provides an added layer of assurance for businesses, knowing that their invoicing processes are backed by robust security protocols. The annual security reviews conducted by these providers further demonstrate their dedication to maintaining high security standards.
Mitigating Risks Through Proactive Measures
Clearly, businesses need to adopt proactive measures to protect their operations. Diversifying their accounting systems by incorporating eInvoicing solutions can significantly reduce the risk of similar disruptions in the future. By doing so, businesses can ensure that their financial data is protected, even in the event of a widespread IT failure.
The global IT outage serves as a reminder of the importance of having resilient systems and solutions in place. eInvoicing solutions, particularly those leveraging the Peppol Network, offer a viable and secure alternative to conventional invoicing methods, providing businesses with the tools they need to navigate the challenges of today’s digital landscape.
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Footnote: In this article, “eInvoicing” and “e-invoicing” are used interchangeably to refer to electronic invoicing.