The introduction of e-invoicing is a government initiative to improve the way businesses interact with each other to lower the cost of doing business and improve payment times. It is another great step towards digitising Kiwi small business.
To understand the point of e-invoicing, let’s think about how invoicing works today. To request payment for products or services, you’ll either send a paper invoice in the post or a word doc, spreadsheet or PDF file via email. A business recipient will then receive it and check the details and pay it. They will then reconcile the payment transaction and save the invoice for their own accounting record.
This process is far from seamless. First of all, there’s the costly administrative work involved in sending, receiving and recording invoices. Secondly, there’s potential for lost or overlooked invoices that causes delay in payment. We know too well the harsh impact late payments