E-Invoicing - The future of business transactions
Introduction
Invoice is the first and most crucial step in the bookkeeping process. An invoice establishes an obligation for payment for products and services provided. Most of the organisation use accounting software for creating invoice and making online payments. Even though this process is done with the accounting software still, human intervention is required for the sharing of invoices.
Most of the organizations still print and post paper invoices. Some companies share and follow up for invoice via email. Electronic invoicing (E-Invoicing) allows the sharing of invoices between a buyer and a seller in an electronic format. Electronic invoicing (E-Invoicing) automates and eliminates manual intervention in sending and sharing of invoices.
Some companies around the world are using electronic invoicing (E-Invoicing), but there are still many businesses that are still not aware of all the benefits. This article looks into E-Invoicing, its benefits, and explains what the Singapore government is doing to promote electronic invoicing (E-Invoicing) use in Singapore.
What is an Invoice?
Invoice is the foundation of bookkeeping for all businesses. Invoice is also the most commonly created document in any accounting software. Every time goods and services are bought or sold; an invoice is issued. A sales invoice tells your customers how much they owe you, and when is the payment is due. Invoices are the most crucial document in bookkeeping as they enable companies to get paid for their products and services. Invoices are critical documents for both buyer and seller.
What is an e-invoice?
Electronic invoice (e-invoice) automates and eliminates manual intervention in sending and sharing of invoices between a buyer and a seller. This means that the invoice is created, sent, and received in standard electronic format. This allows buyers and sellers to automate invoice processing.
Some accounting software has automated E-Invoicing and its payment. Once e-invoice is received in the accounting software, the buyer can check the invoice and can make the online payment via credit transfer, direct debit, or card payment. Electronic invoice (e-invoice)enables you to create automated invoice payment as no need to manually add the bank details, payment amount, etc. as the e-invoice already has everything that the buyer needs to make the online payment.
Why should businesses move to E-Invoicing?
Electronic invoices (e-invoices) prevents human errors caused by manual work such as the wrong amount being sent or typos when entering bank account details, etc. Electronic invoices (e-invoices) remove the possibility of errors while making an online payment as electronic invoices (e-invoice) contain all of the information such as amount due, bank account details, etc. that are required to make the online invoice payment.
By automating the online payment process for e-invoices, both the sender and the receiver of the e-Invoice can benefit from significant cost-savings spent in printing and sharing of invoices. Electronic invoicing (E-Invoicing) allows sellers to save money that is spent on printing and posting of paper invoices, responding to customer requests for copies of lost invoices.
Electronic invoices (e-invoices) makes the whole process of sharing and paying invoices faster. E-Invoicing enables sellers to receive the money more rapidly and have a more predictable cash flow. E-Invoicing allows buyers to save more time and cost incurred from printing paper invoices and payment mistakes made while paying bills.
What are the advantages of E-Invoicing?
With e-invoice, businesses can automate and streamline processes of sending and paying for the invoices. E-Invoicing helps to reduce operational costs spent on manual work. With E-Invoicing, the process of sharing and paying for invoices can be executed much more efficiently and effectively as invoice data can be captured, managed, and maintained with minimal labor and time required. Here we have listed the advantages of E-Invoicing.
Reduced Manual Work
- E-Invoicing allows easy creation and sharing of invoices in one standard electronic format.
- E-Invoicing significantly reduces the time and effort spent in exporting invoices, invoice verification, emailing invoices, manual data entry for bills.
Eliminates data entry errors
- E-Invoicing eliminates data entry errors made by finance staff.
- E-Invoicing allows sending invoice data in electronic format, which minimises erroneous entries.
- E-Invoicing significantly decreases the time and effort spent in following-up and rectifying errors made in the process.
Save printing expense & go green with a paperless office
- E-Invoicing allows companies to save money in printing invoices.
- Send invoices in standard electronic format and eliminate hard-copies.
Faster payment cycle
- E-Invoicing reduces customer’s and supplier’s inquiries about invoices, which leads to speedy approval and faster payments.
- E-invoices allows for faster processing as less manual work is required to make an online payment for the invoice.
Improved Customer and Vendor Management
- Send and receive invoices from any buyer and seller on the Peppol network.
- Negotiate discounts for early payment of invoices
More Efficient Cash Flows
- E-Invoicing allows real-time visibility of the payment cycles, enabling more efficient cash flow management for your business.
- Better control of cash flow for forecasting and growth planning
To know more about cash flows and cash flow statement, read our Complete Guide to Cash Flow and Cash Flow Statements.
How is Singapore Government promoting E-Invoicing?
Singapore government has recognised the benefits of E-Invoicing and has been encouraging businesses to use E-Invoicing. The E-Invoicing registration grant is a scheme from IMDA in partnership with ESG to help businesses to digitalise. E-Invoicing Registration Grant is a one-time grant of $200 to encourage every organisation to join the nationwide E-Invoicing network early and benefit from operational efficiency and reduced cost via digitalisation. This grant can be used by businesses to buy Peppol-ready accounting/ERP solutions. Click here to find out more about E-Invoicing Registration Grant.
E-Invoicing Registration Grant
The E-Invoicing Registration Grant is a scheme from IMDA in partnership with ESG to help businesses to digitalise. E-Invoicing Registration Grant provides businesses with a one-time payment of $200 per UEN after first-time registration to E-Invoicing Network. Click here to find out more about E-Invoicing Registration Grant.
This grant provides companies with a one-time payment of $200 per UEN, upon first-time registration to the E-Invoicing Network on or before 31 December 2020. This grant is applicable for businesses which are valid, active and registered in Singapore on or before 25 March 2020. Source: IMDA
Additional Information about E-Invoicing Registration Grant (Source: IMDA) :
- Click here to find out more about E-Invoicing Registration Grant.
- Click here to download the E-invoice submission guide.
- Check E-Invoicing Registration Grant FAQs here.
- Click here to view Terms and Conditions for E-Invoicing Registration Grant.
Go Digital with Deskera E-Invoicing
Deskera Books is Peppol ready software and allows users to share the invoices with customers in electronic format through a secure network. Avoid the hassle of printing and sending invoices or pdf attachments in email. You can just share invoices with a single click. Deskera E-Invoicing makes sending and receiving of documents super easy and quick.
Buy Deskera Books and get S$200 with the IMDA E-Invoicing Registration Grant (ERG). Click here to find out more about Deskera People E-Invoicing.