Invoice Bill Paid Payment Financial Account Concept
Credit: Invoice Bill Paid Payment Financial Account Concept
The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed Treasury’s public consultation on how e-invoicing arrangements can be best managed, saying it is one of the aspects of digitilisation that makes small businesses more productive by streamlining payments and improving cashflow.
“Around 1.2 billion invoices are exchanged in Australia every year; the potential benefit to the Australian economy in switching to e-invoicing is $28 billion over 10 years,” Carnell said. “The benefits of e-invoicing are significant for small businesses – it means quicker payments and reduced administration costs.”
Ms Carnell pointed out the research which shows it costs $30.87 to process a paper invoice, $27.97 per PDF invoice and only $9.18 per e-invoice, which is considered a significant saving, stressing that e-invoicing will help eliminate processing errors as the core business details are stored online and can include a direct link to your bank account for payments.
Research also reports around 20 per cent of invoices today are sent to the wrong person and 30 per cent contain incorrect information, thus delaying payment.
“E-invoicing also reduces the time from creating an invoice to getting paid as the sending and payment is automatic, which increases business productivity,” Ms Carnell said. “We will continue to advocate digitilisation, and its many applications, so small businesses can realise the benefits of participating competitively in the digital economy.”