{"id":11427,"date":"2024-10-29T20:39:56","date_gmt":"2024-10-29T07:39:56","guid":{"rendered":"https:\/\/link4.co\/nz\/?p=11427"},"modified":"2025-03-21T12:58:09","modified_gmt":"2025-03-20T23:58:09","slug":"urgent-need-for-einvoicing-adoption-as-key-government-agencies-fail-to-meet-payment-goals","status":"publish","type":"post","link":"https:\/\/link4.co\/nz\/news\/urgent-need-for-einvoicing-adoption-as-key-government-agencies-fail-to-meet-payment-goals\/","title":{"rendered":"Urgent Need for eInvoicing Adoption as Key Government Agencies Fail to Meet Payment Goals"},"content":{"rendered":"\n
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Despite New Zealand’s central government agencies commitment to pay 95% of domestic invoices within 10 working days<\/a>, many continue to face challenges in meeting this goal. Recent data from the Ministry of Business, Innovation and Employment (MBIE) highlights progress, with 95.3% of invoices paid on time\u2014up from 93.6%<\/a> in the previous quarter. However, key agencies like the Department of Conservation (DOC) and the Customs Service are falling short, paying only 70% and 74%<\/a> of invoices on time, respectively.<\/p>\n\n\n\n

Currently, 32 central government agencies are required not only to meet this payment target but also to be capable of receiving eInvoices from their suppliers. The slow adoption of digital solutions, such as eInvoicing, is often at the core of the payment delays experienced by these agencies. Challenges such as outdated manual systems, high volumes of invoices, and complex approval chains are contributing factors, resulting in payment delays that strain business relationships and disrupt cash flow for suppliers.<\/p>\n\n\n\n

Earlier this year<\/a>, Hon Andrew Bayly, Minister for Small Business and Manufacturing, announced plans to repeal the Business Payments Practices Act 2023. The government will instead focus on non-regulatory measures, including increasing eInvoicing adoption across agencies, setting faster payment targets, and publicly disclosing payment times to improve transparency.<\/p>\n\n\n\n

eInvoicing solution providers such as Link4, are urging government agencies to fully embrace the technology to close the gap in payment performance.<\/p>\n\n\n\n

Robin Sands, CEO of Link4, underscores the far-reaching benefits of eInvoicing for both government agencies and suppliers. \u201cThe adoption of eInvoicing marks a significant step forward. By embracing Peppol eInvoicing standards, the government is not only boosting transparency and efficiency but also ensuring timely payments for businesses working with government agencies, thereby fostering greater trust between the two sides.”<\/p>\n\n\n\n

\u201cAdditionally, eInvoicing offers substantial cost-saving benefits. It costs around $26 to process a paper invoice and $23 for an emailed PDF invoice, whereas processing an eInvoice costs less than $10<\/a>\u2014largely due to the reduction in manual handling,\u201d added Sands.<\/p>\n\n\n\n

The government’s commitment to Peppol eInvoicing has already enabled 21 agencies to exceed the 95% on-time payment target,  with Ministry for Women, Serious Fraud Office, Crown Law, and Ministry for Primary Industries agencies achieving a perfect record<\/a>, further demonstrating the technology\u2019s effectiveness in easing administrative workloads and faster payments.<\/p>\n\n\n\n

Peppol eInvoicing ensures seamless and accurate exchange of invoices between businesses and government entities, significantly reducing processing times. This efficiency helps minimize errors and delays, which are often associated with manual or PDF-based invoicing systems.<\/p>\n\n\n\n

The head of Link4’s New Zealand office, Tim Findlay, highlights the practical advantages of eInvoicing. \u201cFrom both a practical and financial standpoint, eInvoicing is a win-win. It\u2019s cost-effective, easy to integrate, and helps government agencies meet their payment obligations more promptly. By adopting eInvoicing, agencies can strengthen relationships with suppliers and drastically reduce processing times.\u201dWith over 280 million<\/a> business-to-business invoices exchanged in New Zealand each year, the government estimates that eInvoicing could save the economy $4.4 billion over the next 10 years.<\/a><\/p>\n\n\n\n

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About Link4:<\/strong><\/h4>\n\n\n\n

Link4<\/a> is a leading provider of global eInvoicing solutions, empowering businesses worldwide with innovative Procure-to-Pay solutions. Committed to excellence and customer satisfaction, Link4 delivers cutting-edge technology to streamline invoicing processes and drive business growth.<\/p>\n\n\n\n

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Media Contact Link4:<\/strong><\/h5>\n\n\n\n

Kasun Illankoon \u2013 PR Specialist<\/p>\n\n\n\n

kithzk@link4.co<\/p>\n\n\n\n

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Find out more about eInvoicing<\/h5>\n\n\n