Is swapping outdated billing software for a next generation e-invoicing solution on the agenda for your business in FY2025?
If the answer is yes, you’ve made a shrewd call and one which other Australian businesses would do well to consider.
Many continue to rely on outdated methods and solutions to bill their customers for the goods and services they sell. And it’s to their detriment. Creating, sending and chasing up invoices manually is slow and expensive.
In common with other manual clerical processes, it carries the risk of human error. Having to rectify and re-issue incorrect invoices can slow the flow of payments into your business, putting pressure on cash flow and your finance team.
And then there’s the customer experience angle to consider. Inaccurate billing is an irritant to customers who have to waste their own valuable time chasing a fix. It can cast your organisation in a disorganised and unprofessional light and, if it happens regularly, may prompt some buyers to start exploring what the competition has to offer.
The advantages of e-invoicing
Ample reason, then, to start looking for a better way and e-invoicing certainly is that.
Most simply described as the digital exchange, via secure network, of invoices between your business and a customer’s accounting platform, it does away with the need for printing, storing, posting and emailing.
Instead, your customers can download their bills securely just seconds after you issue them, and enhanced visibility of the process means you’ll be able to see exactly when they’ve done so. There’s a good chance you’ll receive your remittance more quickly, as a result of that reduction in processing time.
And you’ll save money directly as well. Deloitte Access Economics estimates that every time an e-invoice replaces a traditional paper or emailed PDF invoice, the businesses involved can share up to $20 in cost savings. If your enterprise is a prolific biller, that can fast add up to a significant sum.
Selecting the right solution
But while the case for e-invoicing may have been well and truly made out, how much it benefits your business will very much depend on the solution you decide to adopt. The finance technology market is a mature one and that means there’s no shortage of options to choose from. Features and functionality can, however, vary significantly and it pays to go with a market leading platform that can support your business’ current and future requirements.
If your business is in growth mode, or already has an overseas presence, you’ll need to look for a solution that enables you to comply with the specific invoicing and taxation requirements of the countries and markets where you’ll be trading. B2B e-invoicing, for example, is already mandatory in several European countries but the standards and specifications to which they must adhere vary.
Expanding your operations means you’ll likely be producing a higher volume of invoices each week or month too. The system you choose should be able to scale apace, as you make the transition from small to medium sized organisation, or take the leap into the enterprise sphere.
Robust data security measures are also an essential in today’s climate of rising cyber risk. Invoices are critical financial documents and any e-invoicing solution you adopt should have stringent safeguards in place to protect the privacy of your business and that of your customers. The cost of getting it wrong can be crippling. Here in Australia, organisations that fail to take adequate steps to protect customer privacy face potential penalties equal to the greater of $50 million, three times the value of the benefit obtained or 30 per cent of domestic turnover in the relevant period.
And, last but certainly not least, when choosing an e-invoicing solution, interoperability should be one of your primary concerns. Interoperability is the ability of different systems to communicate and exchange data with each other. When it comes to e-invoicing, interoperability allows e-invoices to be exchanged seamlessly between organisations, regardless of the software they use. There are several benefits to using an interoperable e-invoicing solution, including:
- Reduced costs: Interoperability can help reduce the costs associated with e-invoicing by eliminating the need to manually enter data into different systems.
- Increased efficiency: Interoperability can also improve the efficiency of e-invoicing by streamlining the process and reducing the risk of errors.
- Improved compliance: Using an interoperable e-invoicing solution can help improve compliance with e-invoicing regulations by ensuring invoices have a consistent and standardised format.
Setting your business up for a stronger future
Optimising your financial processes is a surefire way to achieve efficiencies, save money, boost cash flow and deliver a better customer experience. If improving its position is a priority for your business in FY2025, adopting best-of-breed e-invoicing technology is a great place to start.
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