Thanks to the NZBN, smarter invoicing is on the way
Electronic invoicing (e-Invoicing) is the first in a range of new digital products that use the New Zealand Business Number (NZBN) to help businesses save time and money.
Check out our video to find out about e-Invoicing and how it will benefit Kiwi businesses.
1:30 minutes | Transcript
How it works
E-Invoicing is the direct exchange of invoices between suppliers’ and buyers’ financial systems.
With e-Invoicing, businesses will no longer need to create paper-based or PDF invoices that have to be scanned, posted or emailed, and then manually entered into a finance system. That’s because an e-Invoice can be sent directly to a customer’s finance system, even if the two businesses are using different systems. International standards will allow these systems to ‘speak’ to each other, resulting in fewer errors. By removing manual handling the billing process becomes faster and more accurate, reducing the chance of problems and delays.
The benefits for Kiwi businesses
Faster and easierE-Invoicing will save businesses time and money by enabling faster delivery, processing and payment of invoices. This supports better cash flow and business growth.
Fewer errorsAround 40% of invoices are more than a month overdue for payment, often because of simple errors from manual inputting. Removing manual handling and the re-keying of information improves data quality and results in fewer incorrect and lost invoices.
Direct and secureNot only are e-Invoices impossible to lose, they increase confidence by minimising the risk of fake or compromised invoices. If an incorrect invoice is sent, the business will receive an immediate notification allowing them to address the issue quickly.
For every businessE-Invoicing offers a solution that all businesses will be able access and benefit from, regardless of your size and the systems you currently use.
Preparing for e-Invoicing
The New Zealand and Australian governments are working on a joint approach to e-Invoicing. This will make it easier for businesses on both sides of the Tasman to work with each other and across the globe.
Ways your business can start preparing
- Use your NZBN and the NZBNs of the businesses you deal with. You can find these by searching the NZBN Register. Companies have been given one automatically, while sole traders, partnerships, trusts and other businesses can get an NZBN now for free.
- If you use a software provider or reseller, let them know you’d like to switch to e-Invoicing once it’s available and ask about their plans to support the NZBN and e-Invoicing.