ATO says system could save time and money

Source: Unsplash/Scott Graham.

The Australian Taxation Office (ATO) and accounting providers have welcomed the launch of e-Invoicing Week, celebrating the new digital invoicing process that promises to save time and money for small businesses across the Australia.

E-invoicing is a nationwide digital upgrade allowing buyers and suppliers to send and complete invoices without ever putting pen to paper or converting a physical document to PDF.

The standardized system connects a company’s accounting software to the new Peppol network, which can connect with other companies across the country.

The ATO says businesses that use e-invoicing can reduce the cost of issuing an individual invoice by up to $20, which could save small businesses a significant amount of money over time.

Automated processing means there are fewer human errors caused by manual entry. According to the ATO, this same automation speeds up billing processing, which helps the company’s cash flow.

While the tax office and accountants sing the system’s praises, new data shows that a significant number of small businesses have yet to discover e-invoicing or how it could improve their processes.

While awareness of e-invoicing has improved significantly since 2021, only 64% of SMEs had heard of the system as of July this year, according to data collected by accounting software platform MYOB.

Among companies that have not yet adopted e-invoicing, just over half are waiting because they don’t know enough about it.

MYOB has partnered with MessageXchange for its electronic invoicing solution. The company’s managing director, John Delaney, said eInvoicing Week can help “demystify eInvoicing and make the process of going live as easy as possible.”

“Using e-Invoicing Week as a time to find those few minutes to try e-Invoicing could become one of the best business decisions a small business can make this year,” he said.

The week is centered on training courses and information sessions organized by the ATO, at partner companies such as MYOB, Xero, Intuit QuickBooks, Reckon and other leading business accounting providers.

The ATO has also encouraged small businesses that have adopted the process to share their experiences online and on social media, using their own platforms to extend the program’s reach.

An overview of e-Invoicing Week activities and sessions can be found on the ATO website.