Swift, efficient and eco-friendly: How e-invoicing can streamline payments for businesses of all sizes

For many businesses large and small, processing payments is often a laborious and costly endeavour that still involves manual processing or even paper forms.

An invoice may be sent in a PDF file over email, then relayed to a finance executive or an electronic resource planning (ERP) computer system, before a payment is approved.

Worse, some businesses may even ask for invoices to be sent on paper, which not only needs to be handled by hand but also doesn't help with efforts to reduce waste and be more environmentally friendly.

In the future, these annoying problems might happen less often as more Singapore businesses switch to InvoiceNow, a nationwide e-invoicing network system that will make invoicing smoother and easier.

This new standard for invoicing works on the open Peppol network. It will help both small and medium-sized businesses (SMEs) and large businesses enjoy easier invoicing, faster payment, and a better way to save the environment.

Already, government agencies such as the Housing and Development Board (HDB), Jurong Town Council (JTC) and Maritime and Port Authority of Singapore (MPA) are sending e-invoices for direct receipt into their business customers' accounting systems through InvoiceNow.

InvoiceNow is set to be the default e-invoice submission channel for government agencies within the next few years as announced by Senior Minister of State for Finance, Mr Chee Hong Tat, in Parliament. He explains, "Using InvoiceNow will help businesses improve efficiency and reduce cost, by eliminating the need for manual processing and it also reduces errors. Businesses transacting on InvoiceNow can save $8 per invoice compared to the manual process."

Four years after its launch, InvoiceNow now connects more than 55,000 businesses, on a network supported by more than 200 service providers.

Larger businesses who are using an ERP software can connect to this network through an InvoiceNow Access Point Provider and are able to exchange e-invoices with partners who are using a different one, as long as their system is also connected to the same InvoiceNow network.

As more businesses join the InvoiceNow network, they can reap manifold benefits.

Firstly, they can improve accuracy and reduce errors. Without having to manually key in data to be approved and processed, common human errors that may occur with invoice payment can be cut down.

By making the processes more automated and seamless, businesses can minimise double payments or late payments that may adversely affect their bottom line and cash flow.

Secondly, they can use InvoiceNow to drive efficiency and improve processes. The e-invoicing system speeds up validation across financial systems through simplified data matching and by connecting to unique IDs (like UENs, or unique entity numbers) in Singapore.

Without having finance staff pore through a stack of invoices to approve, businesses can also better use their time for less manual and higher-level tasks.

Thirdly, by doing away with paper-based processes, InvoiceNow also helps boost sustainability efforts for many businesses that are keen to do their part to mitigate climate change.

Ultimately, all these benefits lead to an important outcome: faster, more accurate payments for partners and suppliers. This helps build up valuable trust and credibility in a competitive marketplace, opening up opportunities for more partnerships in the future.

In Singapore, larger organisations like Konica Minolta Business Solutions Asia is one example that has turned to InvoiceNow to improve its business. The company sends out an average of 18,000 invoices a year from its Accounts Receivable System to a diversified customer base that includes Large Enterprises, Small and Medium Enterprises, Government Agencies, and Suppliers.

The company dispatches thousands of invoices each month to government agencies as a government vendor, which is a repetitive and time-consuming operation if done manually. However, by leveraging InvoiceNow, they can now seamlessly send e-invoices to them directly via its Accounts Receivable System.

They aim to streamline its invoicing process through its participation in InvoiceNow, increase productivity and efficiency, and carry out its commitment to encourage environmentally friendly and sustainable practices.

"With InvoiceNow, Konica Minolta has been able to significantly reduce manual effort and errors when it comes to invoice creation and management," says Mr Leslie Peh, general manager for national sales operation at Konica Minolta Business Solutions Asia.

"Operating on the open-standard Peppol network has made month-end closing plain sailing," he adds.

Another organisation that has joined InvoiceNow is Unpackt. Since signing up for the e-invoicing system in 2020, it has spent less time on manual processes and found it easier to send invoices to government agencies directly from its own accounting solution.

"It is efficient and seamless to e-invoice from our accounting software to the Government or companies without the need to login to Vendors@Gov (a government invoicing portal) and to re-enter the invoice details," says Unpackt co-founder Jeff Lam.

"InvoiceNow has resulted in time savings, faster payment, and going paperless, which are in line with our business ethos," he adds.

There are various ways for businesses to connect to the InvoiceNow system, depending on whether they are an SME or a large business with its own in-house finance or ERP system.

IMDA has available grants for businesses that connect and transact on InvoiceNow, whether they are just sending invoices or becoming an important node in the network.

For larger enterprise who wish to connect their in-house accounting or ERP system - there is a $30,000 LEAD Connect grant and up to $40,000 LEAD Transact grant available that they can tap on. To encourage businesses to start sending out e-invoices there is a $200 InvoiceNow Transaction Bonus they can leverage on.

For LEAD Connect & Transact Grant: Register interest at this form to receive help from IMDA on planning and meeting eligibility criteria.

For InvoiceNow Transaction Bonus: Complete a one-time registration at this form to receive payout status and other InvoiceNow related matters from IMDA: www.go.gov.sg/register-itb

Brought to you by: