First e-invoice paves way for faster, easier, more secure invoicing
This week, a Wellington business became the first in New Zealand to use e-invoicing, based on the international Peppol platform, setting the scene for billions of dollars of savings in business transactions.
The invoice was sent directly from the business’s financial system to that of their customer’s, using the common standard Peppol eDelivery Network, that enables e-invoicing data transfer. New Zealand accredited e-invoicing service providers were used to transmit and receive the e-invoice, which was received by the customer minutes later.
Through the direct digital exchange of invoices, e-invoicing replaces paper and PDF invoices, and reduces both manual processing and errors, while improving security. This facilitates both faster processing and payment times, which improves business cash-flow and productivity.
“Buyers have told us that manual systems add to administration costs and raise concerns about inadvertently missing a payment, or paying twice due to data entry errors. And suppliers have told us payments have often been delayed due to the time it takes customers to receive, process, reconcile, and upload our invoices,” says MBIE’s E-invoicing Director Mark Wierzbicki.
“E-invoicing has the potential to eliminate a lot of this manual entry, reducing time and the potential for errors. There are plenty of other things businesses would rather have their staff working on, and many customers and suppliers will benefit from this.”
E-invoices are exchanged via a network of accredited service providers using the New Zealand Business Number (NZBN) as the unique business identifier. All e-invoices will be facilitated by NZBNs, with nearly 710,000 businesses already having one. Read our online guide to find out how businesses can get an NZBN.
“A number of New Zealand and International service providers are currently working through the accreditation process so that they can connect businesses to the e-Procurement network. Once there are additional service providers accredited and more finance systems enabled, e-invoicing volumes are expected to increase quickly,” says Mr Wierzbicki.
“The Government also sees the framework as an enabler for wider e-procurement and for faster payment to suppliers in New Zealand. New Zealand government departments are moving to pay invoices within 10 days and it is hoped that this change alongside the introduction of e-invoicing will facilitate faster payment by all businesses in New Zealand.
“Simply put, e-invoicing is the future of business transactions and will save considerable time and money for businesses,” says Mr Wierzbicki.
Find out more in our e-Invoicing section on how businesses can take advantage of e-invoicing, which is forecast to ultimately save the New Zealand economy $4 billion a year.