Local government influencing economic growth via e-invoicing

First and foremost: Recovery

The Australian government remains steady in their ongoing effort to uplift the country’s economy, which was deeply affected by COVID-19 and its aftermath.

Amidst the countless steps taken toward complete economic recovery, a key initiative the government has brought to the fore to aid the recovery was establishing a standard for electronic invoicing (e-invoicing).
So how does e-invoicing help? Let us shed some light…

What is e-invoicing, and how does it work?

Firstly, this is not invoice emailing. It is much safer and more efficient than using PDFs and email.

To put it simply, e-invoicing allows invoices to be electronically transmitted, enabling the direct exchange of information between a buyer’s and supplier’s accounting system – no matter the invoicing software used by either party.

For seamless e-invoice delivery, the invoice information must be shared using a standardised framework. The Peppol network is an internationally-approved framework used for this purpose.

Some call e-invoicing the future, but it would be more accurate to say e-invoicing is already here and taking over rapidly. This is why the Australian government mandated e-invoicing for all federal agencies by 1st July 2022. The e-invoicing initiative was led by ATO under its Digital Business Plan.

While federal agencies have taken the lead in adopting e-invoicing, the government is heavily encouraging organisations of all levels in both the government and private sector to switch from traditional invoicing to e-invoicing.

If e-invoicing is successfully adopted by just 15% alone they hope to achieve approximately 28 billion dollars in savings over the coming decade!

E-invoicing for the Local Government organisations in Australia

Local government organisations, unlike federal agencies, are not mandated to be e-invoicing compliant. But, they do deal with many local suppliers and trade with local businesses in the community. And this is the motivator for many councils – helping support their local economy.

E-invoicing has its obvious advantages. Like eliminating the need to print, scan or send paper-based or pdf invoices and reducing manual data entry. It cuts down the time and costs associated with invoice processing. Bottom line – e-invoicing can help streamline the whole invoice process to enhance workflow productivity and cash flow.  

By embracing e-invoicing, councils contribute to the overall economic growth of their communities, with the support of the following key benefits:

  • Safe invoice delivery – protect local suppliers and SMEs from falling victim to email fraud and avoid being used for payment redirection scams etc.
  • Swift invoice exchange – prompt invoice delivery
  • Avoid payment inefficiencies – pay local suppliers on time or sooner!
  • Zero errors and duplications, exchanging accurate invoices and with less to no manual labour
  • Maintain a better overview of invoice processes and the overall finances
  • Improved workplace productivity and cash flow

It’s evident that by using e-invoicing, councils can avoid most issues they frequently face with traditional invoicing and even support their local suppliers extensively while helping inject money back into the communities. It will help strengthen the relationship they have with local suppliers and SMEs in these communities.

E-invoicing is a valuable digital and financial tool that’s not complicated or expensive to install. With the help of an ATO and Australian Peppol accredited Service Provider like Link4, you can smoothly switch to e-invoicing with no disruptions to the ongoing operations, and it will significantly simplify the internal procurement process too.

If you’re interested in learning more about e-invoicing and how to assist your council join e-invoicing, we can help. Feel free to reach us through [email protected]

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