Streamlined business invoicing a step closer
Streamlined payment practices are a step closer for Kiwi businesses with the formal launch of New Zealand’s e-Invoicing framework.
Small Business Minister Stuart Nash says the government has now established the structure to enable automated and direct data exchange between the accounting systems of buyers and sellers.
“The move to e-Invoicing has been driven by the Prime Minister Jacinda Ardern and her Australian counterpart Scott Morrison, as part of the Single Economic Market agenda to create a seamless trans-Tasman business environment,” Mr Nash says.
“E-invoicing replaces paper-based or PDF invoices that have to be manually processed, with a common digital language that allows different payment and accounting systems to speak to each other.
Mr Nash has told a Wellington conference of around 200 software and financial services providers that MBIE has now been formally established as the agency to manage and oversee the local element of the international network for e-Invoicing.
“The establishment of MBIE as the local authority for the Pan European Public Procurement Online (PEPPOL) network marks a big step towards the first exchange of e-Invoices by Kiwi businesses,” Mr Nash says.
“Financial and IT service providers and others can now gain accreditation to use the PEPPOL network, which connects businesses across 32 countries. It allows private sector and government agencies to begin adopting e-Invoicing by the end of 2019.
“Businesses should prepare now for e-Invoicing by adopting a New Zealand Business Number (NZBN). The NZBN enables e-Invoicing and can be fully integrated into procurement and finance systems.
“We know late payments and long payment terms are some of the biggest sources of stress and cash flow problems for small businesses. As a more accurate, secure and efficient process, e-Invoicing will help ensure businesses are be paid on time.
“We are already first in the world for ease of doing business, but we want to be even better,” Mr Nash says.
More information about the NZBN and e-Invoicing is here: https://www.nzbn.govt.nz/