Australian businesses are being encouraged to adopt E-invoicing to help simplify and automate the exchange and processing of payments following a recent update from the Australian Tax Office (ATO).
Accountants Daily reports a recent update from the ATO said the adoption of e-invoicing can help businesses simplify and automate the exchange and processing of invoices.
“Government agencies, business, and software providers across Australia are getting on board with electronic invoicing (eInvoicing),” the ATO said.
“You might like to consider the benefits of eInvoicing for your organisation, including faster payments from government agencies.”
Leadership, strategy and business news site In The Black reports reported the ATO estimates up to A$28 billion can be saved over 10 years by adopting e-invoicing systems, which is money that can be saved by everyone.
ATO calculations say between 30 and 50 per cent per invoice processed on both sides of the ledger can be saved.
Furthermore, the ATO noted that generally, paper and emailed PDF invoices costs between $27 and $30 to process. E-invoicing enables process automation and reduces costs to less than $10 an invoice, according to Accounting Daily.
As a supplier, businesses will no longer need to create paper or PDF invoices to print, post or email. As a buyer, businesses won’t need to scan and manually enter invoices into the software.
The ATO has set up a series of resources to help businesses get ready for e-invoicing.
The ATO has adopted the globally recognised standard for sending e-invoices and e-orders, known as Peppol (Pan-European Public Procurement OnLine).
Learn more about e-invoicing
Hear from the ATO on the new e-invoicing initiative at PASA ProcureTECH 11 and 12 May 2022.