In 2019, IMDA introduced the nationwide E-invoicing network, also known as InvoiceNow, with the aim of assisting Singapore businesses (both SMEs and Enterprises) in enhancing their efficiency, cutting costs, facilitating faster digital payments, and promoting environmental sustainability.
InvoiceNow revolutionizes the way businesses exchange invoices, bringing efficiency and cost savings to both small and large organizations. By utilizing the Nationwide E-delivery network, which is built on the Peppol infrastructure, InvoiceNow enables the seamless transfer of digital invoices between different financial systems. This eliminates the need for manual paperwork and allows for automated processing, benefiting businesses of all sizes.
In contrast to the traditional method of emailing a PDF e-invoice, InvoiceNow facilitates a two-way exchange of data between the supplier and the buyer's system. This means that the invoice details are automatically transferred from the supplier's system to the buyer's accounting system, such as accounts payable, without any human intervention. This comprehensive solution not only streamlines the invoicing process but also opens up the possibility of seamless payment of InvoiceNow invoices.
The advantages of adopting InvoiceNow are manifold.
Firstly, businesses can expect quicker payment of invoices as the streamlined invoice-to-payment process reduces delays and bottlenecks. This is especially beneficial for small businesses that rely on prompt payment for their cash flow. Additionally, the elimination of laborious and time-consuming manual processes reduces costs associated with invoice processing. According to a study commissioned by IMDA, manual processes can cost up to $8 per invoice, a significant expense that can be alleviated through the use of InvoiceNow.
Error rectification is another area where InvoiceNow proves its value. Traditional paper invoices are susceptible to errors, which can be time-consuming and expensive to rectify. However, with InvoiceNow's automated system, the likelihood of errors is reduced, resulting in cost savings for businesses. According to the same study by IMDA, approximately 3% of paper invoices require rectification, costing up to S$72 per error. By minimizing these errors, businesses can avoid unnecessary expenses and allocate their resources more efficiently.
Furthermore, the implementation of InvoiceNow brings about a decrease in costs associated with storage, retrieval, and delivery. With e-invoices, businesses no longer need to allocate physical storage space for paper documents or invest in costly document management systems. Instead, invoices can be stored digitally, easily retrieved when needed, and delivered electronically. This not only saves businesses money but also contributes to a greener and more sustainable business environment.
To adopt InvoiceNow, finance and procurement leaders in Singapore can follow a few simple steps.
In conclusion, InvoiceNow revolutionizes the invoicing process, bringing numerous benefits to businesses in Singapore. By facilitating direct and automated exchange of invoices, InvoiceNow enables faster payments, reduces manual processes and errors, and decreases costs associated with storage and delivery. Finance and procurement leaders can easily adopt InvoiceNow by ensuring Peppol-readiness and partnering with the right solution providers. With InvoiceNow, businesses can streamline their invoicing processes, improve efficiency, and contribute to a more sustainable business environment.
About Valtatech as PEPPOL Access Point certified provider
A PEPPOL Access Point serves as your gateway to the PEPPOL network, allowing your business to seamlessly exchange electronic documents with other connected companies. This essential service, obtained from a service provider, enables efficient and secure communication within the network, ensuring that your business remains connected to other Access Points.
Valtatech serves as the driving force behind the connectivity gateways that operate as access points on the e-invoicing network. We ensure adherence to Peppol standards, efficiently route invoices to the designated destination access points, and take responsibility for registering and updating participant details in the Singapore SMP.