WELCOME TO OUR BLOG, WE'RE EXCITED TO HAVE YOU HERE! WE HOPE THE BUSINESS ADVICE, SUCCESS STORIES AND CASE STUDIES WE SHARE WILL HELP YOU ON YOUR ENTREPRENEURIAL JOURNEY
There are big changes afoot that will completely turn upside down how we currently process invoices. The ATO are working with the software industry to implement the internationally recognised standards of Pan-European Public Procurement On-Line (PEPPOL).
Once implemented this will allow software systems to talk to each other. It won’t matter that you use Xero and your customers use Sage, Quickbooks or MYOB as examples. The PEPPOL standards will allow each software system to electronically send and receive invoices. This will remove the need for manual entry.
The benefits are said to be reduced processing times, improved cash flow, fewer entry errors and better record keeping for substantiation purposes.
It will also reduce tax evasion as the ATO will have access to transactions in real time.
The details have not been released but it is expected e-invoices will have a standard template, the invoice will then be validated through a central system and then electronically sent to the customer.
The ATO haven’t indicated when it will be available, but it is expected to be voluntary in the initial stages. Also, the Commonwealth Government has indicated that departments which use e-invoices, will pay invoices up to $1 million in value within 5 days or pay interest on the unpaid amount.
In the meantime, to speed up collection of your accounts receivable, we suggest you use Xero Network Key. Each Xero file has a unique key and when a customer’s Xero Network Key is entered in your system under their Contact Name, your Xero file will send a sales invoice in draft form to appear automatically in your customer’s Xero file. Please contact us if you need help setting this up.
You should also consider adding a payment service such as Stripe, PayPal or GoCardless to your invoices. This will make it easier for your clients to pay. Again, we’re happy to help you set this up.