e-Invoicing - enabled by the NZBN
Smarter invoicing is on the way
Electronic invoicing (e-Invoicing) is one of the first in a range of new digital innovations that will use the New Zealand Business Number (NZBN) to help businesses save time and money.
Businesses will no longer need to generate paper-based or PDF invoices that have to be printed, posted or emailed, and buyers will no longer need to manually enter these into their accounting system.
It’s time to start preparing your business for e-Invoicing, so that you can take advantage of this technology too.
How it works
E-Invoicing is the direct exchange of invoices between suppliers’ and buyers’ financial systems. Buyers can send an e-Invoice directly to their customer’s financial system through a digital ‘mail’ service. International standards will allow these systems to ‘speak’ to each other, even if the two businesses are using different systems. By removing manual handling, the billing process becomes faster and more accurate, reducing the chance of problems and delays.
Check out our video to learn how e-Invoicing will transform the way Kiwis do business.
The benefits for Kiwi businesses
E-Invoicing will offer a solution that every business will be able to access and benefit from, regardless of their size, and which financial management system they use.
Faster and easier
E-Invoicing will save businesses time, by enabling the faster delivery, processing and payment of invoices, which can improve cash flow and support business growth.
Moving to e-Invoicing will save businesses money, as e-Invoices are significantly less expensive to process than paper or pdf invoices.
Around 28% of invoices are more than a month overdue for payment, often due to simple errors. By removing manual handling, data quality will improve resulting in fewer delays caused by incorrect invoices.
Direct and secure
E-Invoices are impossible to lose and they reduce the risk of fake or compromised invoices, so businesses can be more confident that the invoices they are paying are authentic.
Joining PEPPOL — a global standard
In February 2019, the New Zealand and Australian Prime Ministers announced their intention to adopt the Pan European Public Procurement Online (PEPPOL) interoperability framework, to deliver e-Invoicing. PEPPOL is a global framework already used by 32 countries.
New Zealand became a PEPPOL authority in March. Specific requirements are being finalised for the transition to PEPPOL to take place by the end of 2019. It is expected that businesses will be able to access the e-Invoicing framework from that time.
Ways your business can start preparing
- Get your NZBN – you need it to access e-Invoicing
- Start sharing your NZBN with the businesses you work with
- Talk to your technology team or accounting software provider about including the NZBN in your customer and supplier databases
- If you are a supplier who would like to send e-Invoices to your customers, add their NZBNs to the information you already hold about them.
- If you are a customer who would like to receive e-Invoices from your suppliers, start loading their NZBNs against your supplier information.
- Ask your accounting/procurement system provider when your system will be able to send ‘PEPPOL’ formatted e-Invoices.
Powered by the NZBN
An NZBN is the unique, globally recognised identifier necessary for a business to access e-Invoicing. It’s available to all Kiwi businesses, whether they are working from the kitchen bench or a major corporation. NZBNs link to core business information (known as Primary Business Data). This includes things such as trading name, phone number and email.
The NZBN provides access to up-to-date, accurate information on the businesses you work with.
In order to use e-Invoicing, your financial systems need to know the NZBNs of the businesses you deal with, to direct e-Invoices to the correct customer’s finance system, and to validate the sender’s information.
You can find existing NZBNs by searching the NZBN Register. Companies and other registered businesses and government agencies are provided with an NZBN automatically, while sole traders, partnerships, and trusts can get theirs at nzbn.govt.nz.
If you’re a Service Provider or other interested party
There is an accreditation process required to provide Access Point, Translation, Gateway, or other e-Invoicing services.
Register your interest in learning more about the accreditation process here.