Understanding how E-Invoicing works can be a bit confusing. There are probably a bunch of questions flying around your head about the concept, so lets go over a few of those questions to clear things up.
1. What is e-invoicing?
That’s a good start to get the gears going. e-invoicing essentially allows the accounting systems to talk together in real time. Delivering the invoice information exactly where it needs to go – in real time. It is cost effective, digital, faster, more convenient, and provides a boost to the process of money conversion. It also protects you from the email being intercepted and the invoice details changed. So it’s much safer too.
2. I receive invoices, how can I benefit?
E-invoicing put simply helps cut invoice costs by up to 80%, allows faster payments, improves cash flow and connects straight to your system without the need for manual entry. It also helps alleviate issues with current invoice methods, which include unforeseen costs, including payments being made late or sent to the wrong place.
E-invoicing can help your business take that extra step to becoming more digital and support operations to run smoother in the business.
3. Do I need to buy new software?
There are different ways invoices can be sent, that is paper, email with pdf or through a cloud service. Some systems may require you to buy particular software, but as long as you have a cloud accounting system, most e-invoicing services can be easily used without the need for purchasing additional software. It can connect to any cloud system but also between different systems as well.
Link4 InvoiceExpress is an example of a service which does not require a cloud system. This service sends the invoice as an e-Invoice directly to the customer’s cloud accounting system on the PEPPOL e-invoicing network.
4. Will it be mandated?
At this point, having an e-invoicing system would give a business an advantage over competitors who are still using paper. As e-invoicing grows its awareness, government bodies are recognising the value of it, and have taken action to help businesses utilise its usefulness. Some have began to make it mandated, for example Australia, India and Egypt are some which have started taking action, while others like Singapore are giving out rewards for businesses who implement it into their system. It won’t be long until it’s mandated, as it improves efficiency, security and control of their cash flow, helping business keep on top of their cash flow.
5. I don’t use a cloud software, Can I still do e-invoicing?
Sometimes implementing a cloud system can be expensive, especially for entrepreneurs and SMEs. There are options out in the market which can provide an alternative solution so that everyone can still use it. Link4 InvoiceExpress is an example, as it connects to the cloud without needing cloud accounting software to work with.
What do I need to do?It’s quite simple, all you need to do is find an e-Invoicing service provider, preferably one with a free service (like Link4) and sign up online. It just takes 2 mins and there’s no need for credit card details. So start today!