In a recent update, the ATO said government agencies, business, and software providers across Australia were getting on board with electronic invoicing (e-invoicing).
“You might like to consider the benefits of e-invoicing for your organisation, including faster payments from government agencies,” the ATO said.
E-invoicing is the new standardised way to send and receive invoices via existing software, according to the ATO. It allows sending of invoices directly to the business partner’s accounting system, removing the need for manual data entry and making the whole process safer, more accurate and efficient.
The ATO noted that generally, paper and emailed PDF invoices costs between $27 and $30 to process. E-invoicing enables process automation and reduces costs to less than $10 an invoice.
As a supplier, businesses will no longer need to create paper or PDF invoices to print, post or email. As a buyer, businesses won’t need to scan and manually enter invoices into the software.
E-invoicing can also result in fewer errors as it uses standardised data that is validated before the e-invoice is sent through the network to the company’s software.
The ATO flagged that e-invoices were exchanged securely through the Peppol network by approved access points, using the buyer’s and supplier’s ABNs. This means the risks of fake or compromised invoices, email scams and ransomware attacks are lower compared with posted or emailed invoices and businesses can keep control of invoice processing. This includes verifying and approving invoices. E-invoices can only be viewed by the supplier, buyer and digital software provider, where needed.
“To use e-invoicing, both you and your business partner need to connect to the e-invoicing (Peppol) network via e-invoicing ready software or a service provider,” the ATO explained.
“Digital service providers have started rolling out e-invoicing solutions. You can contact your software provider to find out what options are available, so you can enjoy the benefits of e-invoicing.”
This comes as the government will finish up its consultation of the Business E-invoicing Right (BER) later this month.