- ACE Team
Invoice Faster, Get Paid Faster e-Invoicing for SMEs
As governments around the world enforced shutdowns to ensure public safety, many digital initiatives that were previously a low priority became critical for business continuity.
Singapore's government stepped up its support to help local businesses with digital adoption.
Fortitude Budget announced at the start of June included a Digital Resilience Bonus (DRB).
DRB enhances support for businesses to start paying and invoicing digitally.
The government has been encouraging businesses to adopt electronic invoicing for some time. In January 2019, Singapore officially joined the Peppol E-invoicing network.
What is e-invoicing?
It is the ability to send an invoice digitally between the accounting systems of business suppliers and buyers.
It is different from sending a PDF file or online invoice via email as an e-invoice is automatically sent to the buyer’s accounting system through a secure network.
Business does not need to manually handle the invoice. Crucially, the two businesses involved don’t even need to be working on the same accounting system because the international standard allows these systems to ‘speak’ to each other.
What are the benefits of e-invoicing?
Shorten your cash flow cycle
A cash reserve provides the cushion that your business needs to manage unexpected events.
A cash reserve also insulates you from the economic cycle and whims of banks and other lenders.
It gives you the confidence and resources to grow your business when it is time to do so.
When you make it easy for your customers to pay you by using e-invoicing and issuing invoices with Xero’s online invoicing feature, you get paid faster.
According to Xero data, more than half of invoices paid to SMEs in 2019 were paid late while only four out of ten payments were late in 2018.
Data also shows that Xero customers that issue online invoices (and include a payment option) enjoy a 43 percent reduction in average debtor days.
Reduce admin time
You can send a PDF via email or post a hard copy in the mail. Your customers still need to open the invoice when it’s received and enter the data into their accounting system.
This manual process takes time for both you and your customer. It can also lead to spending more valuable time chasing customers for payment.
Using Xero’s Peppol-ready online accounting software and register on the E-invoicing network, the e-invoices you receive appear automatically as a draft bill in Xero for you to approve.
Eliminates the need for manual data entry reducing the risk of errors for both you and your customer.
You and your team spend less time on admin tasks and more time on revenue-generating activities that bring value to the business and your customers.
Facilitate cross border business
The global accessibility of e-invoicing means more countries around the world have started accepting it as a best practice (and sometimes mandatory) standard.
Potential to create a fast and secure way to do business across borders.
Singapore has signed free trade agreements with both Australia and New Zealand on several digital initiatives, including e-invoicing.
The agreement aims to enhance economic ties between the three nations, with various systems in place in each of the three countries such as e-invoicing is to improve trade flows.
Your business's financial health is more important than ever. E-invoicing can send an invoice digitally between business suppliers and buyers, so it will make the work easier.
Want to know more about e-invoicing with Xero?
Call us at +65 6262 0402 or email us at firstname.lastname@example.org to get the information details on your needs.
Credit:E-invoicing and what it means for small businesses | Xero Blog