Techblog
Why should Small Businesses embrace e-invoicing?
It was announced in the recent Singapore Budget 2018 that a new national electronic invoicing (e-invoicing) framework will be introduced so businesses can process payments more efficiently.
According to SPRING Singapore’s SME Financing Survey that was released in 2017, “delay in customer’s payments” was the top finance-related concern for 2018. It also stated that three in five SMEs faced delayed payments from customers. But this is a concern that could be resolved soon. At the 2018 Singapore Budget, Finance Minister Heng Swee Keat announced the introduction of an e-invoicing framework that can help these businesses process payments in an efficient manner.
The Minister for Communications and Information Yaacob Ibrahim further elaborated on this at the Committee of Supply debate on March 6, saying that businesses will be able to increase productivity at work by adopting this e-invoicing framework.
“Without an invoice, businesses do not get paid. But invoicing can be very tedious and manual, with many inherent errors. E-invoicing can change that.”
Dr Yaacob added that this framework can help businesses cut costs, speed up payments, as well as improve and increase access to new financing options.
So what exactly is e-invoicing?
E-invoicing is not just digitising invoices created in PDF or Microsoft Word. Those processes still require human labour and are prone to errors. E-invoicing refers to the automated creation, exchange and processing of request for payments between suppliers and buyers using a structured format.
What are the benefits of e-invoicing?
Increased accuracy
The electronic capturing of invoices feeds data directly into a business’ accounts payable system without room for error. This makes the business more productive as less time is spent correcting human errors. E-invoicing also allows businesses to process their invoices more quickly, enabling on-time payments. This will in turn improve relationships with suppliers.
Better manage your cash-flow
As paper or email-based invoices take longer to become visible in the respective systems, businesses might lack the necessary data to make quick and efficient decisions for the company. By processing invoices electronically, all upcoming payments become immediately visible. This allows business owners or managers to make more accurate and comprehensive forecasts so that they can avoid the last-minute need to borrow funds.
Work within a single system
E-invoice software like Essentials Invoice are simple and easy to use. Essentials Invoice allows you to create, send and log endorsed quotations within a single system. This gives businesses more visibility and so they are better able to plan better. It is also possible to personalise the invoice with your own email or attach any artwork or proposal with the quotation.
Automate and standardise your quote process
Essentials Invoice also standardises your quotation process by importing your product directory and customer database. Additionally, businesses will receive automated quotation acceptance or rejection updates, and these will be accompanied with reasons. Inefficiency is eliminated, and businesses become more productive as rejected invoices can be amended almost immediately. The software also generates sales performance reports to help businesses finetune sales strategies.
Summary:
- A nationwide e-invoicing framework will be introduced to help businesses improve their productivity, cut costs, speed up payments, and improve their access to financing options.
- E-invoicing is the automated creation, exchange and processing of request for payments between suppliers and buyers using a structured format.
- Essentials Invoice is an e-invoicing software that is easy to use and allows businesses to create invoices in a few clicks.