Date posted: 08/08/2022

eInvoicing is not just for big business

SMEs can take advantage of efficiencies and cost savings.

In brief

  • eInvoicing is fast, easy and secure
  • Getting started is easy
  • Eighty percent of small and medium businesses still use manual invoicing

eInvoicing is the fast, easy and secure way to send and receive invoices between buyers’ and suppliers’ accounting systems. It is not email or pdf.

eInvoicing is like a mobile phone service. Once you select a provider and get connected, you can exchange invoices with anyone on this network using their ABN. This reduces the chance of scams or fraudulent invoices. 

Australia and New Zealand adopted the Pan-European Public Procurement On-Line (PEPPOL) in 2019, which is an international framework used in almost 40 countries, including Singapore and Japan. 

With eInvoicing, suppliers easily create and send invoices and know immediately if it is received or rejected. This means any errors can be fixed quickly and the invoice resent. 

Customers no longer need to manually enter or scan paper or pdf invoices into their accounting systems because it will automatically appear in their systems ready to be processed and paid.
To find out more about eInvoicing visit business.gov.au/eInvoicing.

The benefits of eInvoicing include:

  • standardised, more accurate invoices, which can mean fewer mistakes 
  • reduced time and costs 
  • no more lost invoices by getting the right information to the right contact on time
  • stronger security than email and less chance of invoice fraud or scams
  • faster payments and improved cash flow
  • better business decisions, based on correct, real-time financial information.

What are the costs?

Most small business accounting software providers are building eInvoicing into their products and some already have it available. This may include free or low-cost solutions, depending on how many invoices you exchange and your product.

Talk to your accounting or software or service provider to find out their costs. See the eInvoicing - Ready Product Register to find a provider.

How can my business get started?

Getting started with eInvoicing is easy. There are several options, depending on how you currently create, send and process.

If you use software to create and send invoices, check with your software provider to see if it offers eInvoicing. Many SME accounting software providers already have eInvoicing capability or have plans to introduce it soon.

If your software does not currently have eInvoicing, find out if and when it will be eInvoicing-ready. You can also connect your software to the network via an eInvoicing app available in your software marketplace or app store.

If you manually create invoices in Word, Excel, or even by hand, consider using an eInvoicing web portal. Alternatively, you can investigate the range of eInvoicing solutions available and take a step towards your business’ digital future.

You can look up business.gov.au/eInvoicing to find out how to get started.

You can also talk to your accountant, bookkeeper, or other trusted financial and business advisers about what options may be best for you and your business.

Keep up to date with eInvoicing

The latest resources, submissions and articles.

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eInvoicing – Ready Product Register 

This ATO product register has been established to help business identify eInvoicing-Ready software products. eInvoicing-Ready software products allows business to send or receive digital invoices in real time with suppliers, contractors, or government through their business software.

Read more

Cyber security hub for SMEs

As the accounting profession is growing increasingly reliant on online systems, a cyber security threat is not a question of if, but when. Find the information, tools and resources you need to develop a strong, proactive plan to mitigate risks and protect your business and your clients.

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