The highest myths about eInvoicing, busted

Is eInvoicing in your radar? This new method to handle invoicing holds big promise for the 90 per cent of Australian small companies that also ship PDF or paper invoices. Why’s that? Properly, it’s not solely quicker, however a extra environment friendly and safe method to handle invoices and payments. However there are nonetheless many misconceptions holding folks again from seeing these advantages. Which is why it’s time to take a deeper have a look at the most important eInvoicing myths. 

1. Sending an eInvoice is identical as sending a PDF or utilizing accounting software program

Practically half (47%) of small companies surveyed in Xero analysis final 12 months incorrectly outlined eInvoicing as sending a PDF of the bill or sending a hyperlink to the bill by way of e mail. Sure, whereas many small companies might already be utilizing an digital method to ship and obtain invoices, that is really totally different to eInvoicing. 

As an alternative, eInvoicing is a method to change invoices immediately between accounting software program. This implies as an alternative of getting to be PDFed and emailed, invoices will routinely present up as a draft invoice ready to be authorized and paid in Xero – saving you valuable time on handbook knowledge entry. 

2. My enterprise is simply too small to wish eInvoicing

The excellent news is that eInvoicing is related for all companies that ship and obtain invoices, giant or small. One of many massive advantages is that it permits smaller companies to simply work with enterprises and authorities businesses. 

Historically, giant patrons have pressured smaller suppliers to ship digital invoices by way of costly and clunky custom-built programs (often at a serious implementation price to the provider). This gorgeous a lot locks small companies out of the equation as they merely can’t afford to fulfill these necessities. eInvoicing adjustments this fully. It means everybody, giant or small, makes use of the identical community – eradicating these obstacles.

3. I don’t ship or obtain sufficient invoices for eInvoicing to make a distinction

You is perhaps shocked to study that every time an eInvoice replaces a PDF or paper bill it will possibly save as much as $20 for these concerned. Even in the event you solely ship or obtain a number of invoices a month, the time financial savings can add up quick. Since eInvoicing can also be safer than sending by way of paper or PDF, it reduces the danger of foul play and helps ensure that your bill finally ends up the place it’s meant to go. Since eInvoicing is already included in your Xero subscription, there’s no further prices or new software program wanted. 

4. eInvoicing isn’t related to me since I solely obtain invoices, quite than ship them

eInvoicing affords advantages at each step of the journey – sure, even in the event you solely obtain payments (or vice versa). When receiving payments, it saves time and handbook knowledge entry since eInvoices routinely move into Xero. Moderately than having to sift via emails and enter particulars, they as an alternative present up as a draft invoice ready to be authorized and paid. 

It’s fast, straightforward and free to register to evaluate eInvoices in Xero. Merely observe the steps right here to make sure you’re good to go. 

5. I can’t use eInvoicing as a result of my buyer isn’t utilizing Xero

Probably the greatest issues about eInvoicing is that it’s platform agnostic. What this implies is that it doesn’t matter which accounting software program you or your consumer makes use of, so long as it’s an authorized Peppol entry level or can present entry via one. Peppol is a community custom-built for eInvoicing, with further safety and protections to assist invoices journey safely to their vacation spot. Peppol is somewhat like sending an e mail – it doesn’t matter whether or not you’re utilizing Gmail or Outlook; each the sender and receiver want an e mail deal with for it to work.

6. The ATO is spying on my enterprise exercise via eInvoicing

Don’t fear, nobody is taking a look at your eInvoices who shouldn’t be. In Australia, the ATO is chargeable for managing the Peppol community and enabling companies and governments to entry eInvoicing. It is a pure extension of its different programs and obligations in terms of supporting Australian companies. 

Nonetheless, this doesn’t imply the ATO has entry to any of the data shared by way of the Peppol community. You possibly can relaxation assured that your eInvoices are solely being seen by their meant recipients.

7. I’m a B2C enterprise so eInvoicing doesn’t apply to me

While you could not have the ability to bill your prospects by way of eInvoicing, you’ll be able to nonetheless reap the advantages of eInvoicing by registering to obtain eInvoices from companies who bill you. It will prevent time manually coming into or scanning payments into Xero.

8. eInvoicing will price me further

Think about this fantasy busted! eInvoicing is included as a part of our commonplace Xero providing. Getting began takes only some easy steps – have a look right here for extra particulars.