Benefits of e-Invoicing
E-Invoicing brings a number of financial, operational and strategic benefits to businesses of all sizes, by simplifying and automating the exchange and processing of invoices.
Faster payment and improved cash flow
E-Invoices are sent electronically into the recipient’s accounting system, which helps speed up processing. As e-Invoices pass through the Peppol network they are validated to ensure the information is correct, reducing potential delays, enabling faster payment and improving cash flow.
Cost savings due to easier processing
Each year, New Zealand businesses process more than 282 million invoices. Our research shows, the processing cost of an e-Invoice is estimated to be $7.63, while PDF invoices are estimated to cost $23.01 and paper invoices $25.67. Moving to e-Invoicing will result in an estimated saving of around $15 and $18. This could save New Zealand businesses up to $4.4 billion annually.
Our research shows nearly 80% of all New Zealand businesses have been affected by late payments, with 28% of payments more than one month overdue.
E-Invoicing standards ensure the information exchanged is correct and of high quality, and the automated process reduces manual handling and the re-keying of information, resulting in fewer incorrect or lost invoices.
Direct and secure
E-Invoices are impossible to lose, minimise the risk of fake or compromised invoices, and reduce the chance of paper or PDF invoices being intercepted.
Peppol e-Invoices are sent through a network of trusted service providers who are required to validate sender and receiver details, keep audit logs and follow strict protocols to ensure invoices remain secure while they are sent across the network. This increases confidence that the invoice being paid is genuine.
Improving financial visibility
With e-Invoicing, it’s possible to include a lot of detail on each invoice, and to have better visibility through the invoicing process. This supports analysis, forecasting, planning and budgeting, enabling more accurate financial management.
Available to all businesses
All businesses and government agencies can access and benefit from e-Invoicing, regardless of their size and the systems they use.
The e-Invoicing framework can be accessed in different ways, with many large businesses using their own ‘in-house’ solutions, and smaller businesses engaging their accounting software provider or a Peppol accredited e-Invoicing service provider to deliver these services.
Use this calculator to learn about the potential financial benefits e-Invoicing can provide for your business.