The Ombudsman for Australian Small Business and Family Enterprise, Kate Carnell AO, has encouraged larger businesses to offer e-Invoicing to their small business clients.
Speaking at the recent Australian Business Software Industry Association (ABSIA) Annual Conference on ‘e-Invoicing, Ms Carnell said: “We will continue to advocate digitisation, and its many applications, so small businesses can realise the benefits of participating competitively in the digital economy.”
e-Invoicing is a digital practice where trading partners directly exchange invoice data, enabling the invoice to be directly lodged in the recipients accounting system.
The adoption of e-Invoicing promises to generate huge savings for both large and small business. Studies have shown that the processing costs associated with e-Invoicing can be as much as 80% less than traditional paper and PDF style invoices. A paper invoice can cost as much as $30.87, with its PDF cousin, typically delivered via email, being only slightly less at $27.97. In comparison, an e-Invoice attracts only $9.18 in processing costs. A significant saving for all participants.
There are 2.2 million small businesses, which represents 97% of all businesses in Australia. Over 50% have adopted cloud-based accounting systems.
This high rate of adoption in the small business community opens up the opportunity for larger business to provide an easy time-saving low-cost purchasing process to their small business clients.
ABSIA’s resident e-Invoicing expert, Simon Foster, will be holding a free education session for the supply chain industry on 16 January in Sydney. Simon Foster is also the e-Invoicing leader for the Digital Business Council (DBC) and the founder of Squirrel Street, an eBusiness enablement provider.
For booking and more information click here.