23 Nov How e-invoicing can assist to reduce costs and lift productivity
Gone are the days when invoicing meant lots of paperwork and many hours spent entering data. Advances in digital tech have ushered in the era of e-invoicing, which enables businesses to send invoices directly from one organisation’s financial systems to another. The move to e-invoicing has been happening for some time, Simeon Duncan, Intuit’s senior manager of International Corporate Affairs.
Advantages of e-invoicing
A key plus of e-invoicing is not having to manually handle invoices, which slashes the processing time. There is no need to manually scan or rekey invoices into financial systems, chase missing information on paper files or make corrections.
“Despite the advances of the digital era, a lot of business process still involves friction – particularly an antiquated process such as keying in invoices,” Duncan explains.
“So, the electronic invoices are all about that automated exchange of invoice information directly from the buyer to the suppliers’ account systems. It reduces the time taken to enter data, but also the receiver can see in their system what invoices have been received, check the line items, and add them into the system for payment to remove that friction.”
Another advantage of going electronic is increased security for payers. While manual invoicing leaves organisations exposed to the risk of paying fraudulent invoices, Duncan says e-invoicing has built-in checks and balances to mitigate threats from criminal actors.
“E-invoicing significantly reduces the risk of paying fraudulent invoices because all Australian businesses using the Pan-European Public Procurement Online (PEPPOL) network are registered and identified using their ABN. This is important for all organisations given the high cost associated with fraud.”
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