Explained simply, e-invoicing is the ability to send an invoice digitally between suppliers and buyers. This is different, however, from sending a PDF or online invoice via email as an e-invoice is automatically sent to the buyer’s accounting system through a secure network.
It means the business does not manually need to handle the invoice like they would a paper copy or a PDF attachment. The two businesses, supplier and buyer, don’t need to work within the same systems as standards allow the systems to communicate to each other.
Governments worldwide have stepped up to help support local businesses with digital adoption showing the importance of e-invoicing for businesses of all sizes. For example, the Singapore government have been encouraging businesses to adopt electronic invoicing (e-invoicing) and officially joined the PEPPOL E-Invoicing Network in 2019. At the same time, they introduced the e-invoicing registration grant, which would pay businesses a one-time payment of S$200 when they first register for e-invoicing.
What are the benefits of e-invoicing for small businesses?
Reduce admin time & costs
When creating and sending invoices, whether via email or post, the customer still needs to open the invoice when it’s received and enter the data in their own accounting system. This process takes time for both your small business, and your customer. It can also lead to spending more valuable time chasing customers for payments. All of this manual effort can sometimes require a whole team of people.
When receiving and sending e-invoices, it eliminates the need for manual data entry, helping to reduce the risk of errors for both you and your customer. It also means you can spend less time on admin tasks and more time on activities that bring value to your business.
Shorten the cash-flow cycle
Over the last few years, the need for small businesses to have a cash reserve to help insulate against unpredictable circumstances has become heightened. It can help the business have the confidence and resources to grow the business. The problem of late payments for small businesses is becoming increasingly more aware, and thus stopping businesses from creating a cash reserve. Using e-invoicing helps businesses get paid faster, with more visibility, reducing manual errors and missing invoices.
Offer better customer service
It’s more convenient for your customers to receive an e-invoice into their desired platform, and they can save up to 90% on processing costs compared to a paper invoice. When the delivery time is shorter, your customer has increased possibilities to take advantage of early payment discounts helping achieve better payment rates, and completion of invoices.
More information
B2BE’s 20+ years of experience in the supply chain sector allows our customers to build, expand and adapt successfully, enabling greater effectiveness. We are trusted by over +6000 customers with more than +58,000 trading relationships. Find out more about how you can get immediate access to the PEPPOL e-Delivery network using B2BE’s PEPPOL Access Point.