The Australian government is driving a push to speed up the selection of e-invoicing. For this, it has declared a financial help of $15.3 million to the organisations to decrease expenses and lift productivity. The heavy utilisation of e-invoicing has the potential to assist businesses in effortlessly getting paid much quicker.
Savvy Australian firms are continuing forward from the problem of paper-based and PDF work. This depends upon email, printouts, and even snail mail for conveyance.
e-Invoicing is becoming a new trend as it provides a variety of advantages to ever-busy firms. For example, guaranteeing an invoice is more productive, precise and secure than any other time.
Below we have talked about the things offshore accountants & bookkeepers have to know about this initiative.
What is e-Invoicing?
Remember that sending a PDF receipt via email isn’t e-invoicing. Electronic invoicing or e-invoicing is the most recent automated innovation. In this case, the merchant’s invoice arrives directly in the buyer’s accounting framework.
This technology eliminates:
- A large part of the time,
- Any misinterpretations, and
- Costs that Australian organisations face pursuing and fixing invoicing issues.
The actual advantage of e-invoicing is that it saves your business valuable time and cash. This permits you to focus on your work efficiently.
The federal government and the ATO have chosen the Pan-European Public Procurement On-Line (PEPPOL) as the standard for e-invoicing. Through this standard, firms can send & receive documents like invoices and remittances, between their Accounting systems despite the software they use to make those documents. Every year, more than 1.2 billion invoices are sent.
Also, the PEPPOL standard is already in use by 30+ countries including some big economies such as England, New Zealand, Germany, and Singapore. In Australia, it recognises a recipient of an invoice by checking an Australian Business Number (ABN).
Advantages of utilising e-invoicing
Talking about e-invoicing, it’s a horrible idea to pause or oppose this amazing initiative by the government. This is because of its overpowering positives. e-invoicing guarantees the invoicing interaction is productive, precise, and secure for both the buyer and seller.
According to a study by the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), they estimated that:
53% of invoices are either paid late or remain overdue 23 days on average. These late invoices value around $115 billion.
For the buyer, they don’t have to physically enter or scan the invoices into their accounting system. This decreases:
- Time wastage,
- The potential for human mistakes, and
- Related monetary expenses.
It likewise implies automatic payment booking and no loss of the invoices.
For the seller, there is the assurance that the buyer has gotten the receipt. Plus, the receipt has entered their system which, thus, adds assurance and time saving to when they get paid.
For both, e-invoicing is more dependable and secure than those sent by email or in the post. Likewise, e-invoicing supports cash flow as they are paid all the more rapidly.
How is it “worth considering” for Accountants & Bookkeepers and their clients?
Quicker and easier payments is probably the greatest advantage related to e-invoicing.
Accountants or bookkeepers can send invoices directly from their accounting systems, then onto the other. This eliminates the chance for them to become mixed up, neglected, or accidentally missed in an inbox.
It’s anything but harmless to the ecosystem. Since it diminishes the need to print paper. Thus, firms can make their due contributions to the environment.
The ATO says that manually processing an invoice can cost you up to $30 on paper and $28 through email or PDF. However, an e-invoice will cost you just $10.
With e-invoicing, the chances of fraud also reduce. This is because the PEPPOL needs your ABN number to further process. It becomes essential as it stops high costs associated with fraudulent activities.
In 2019, the Australian Competition and Consumer Commission (ACCC) stated in their study that:
Fraud invoices made companies lose $132 million.
e-invoicing likewise helps nearby firms to purchase and sell across global boundaries, most remarkably into New Zealand through the Trans-Tasman Electronic Invoicing Arrangement. Through this, the two countries have consented to seek ways to deal with e-invoicing.
Australia additionally has approached to work with Singapore one-invoicing and will want to work with different nations utilising PEPPOL later on.
Who is managing it?
The ATO is the lead office encouraging government and businesses to adopt e-invoicing in Australia. It makes guidelines based on the PEPPOL standard.
It has worked intently with the New Zealand government to guarantee a common methodology. This is to steer the creation of a single digital economy market between the two countries.
The government has focused on preparing 80% of invoices electronically before the end of this year. For the remaining invoices, the deadline is by June 2022. Further, the government is in talks with both small and big firms on the more extensive usage of e-invoicing from the word go.
Thus, the initial step is for accountants and bookkeepers to urge their clients to receive e-invoicing.
This will require clients using the old accounting frameworks to adopt the current cloud-based accounting software. For example, QuickBooks that are attempting to boost PEPPOL.
Companies need to begin approving ABNs and entering this information into systems to send e-invoices.
There is a huge amount of work on the government’s part and private sector level to proceed to e-invoicing. A significant change will provide multiple benefits directly across the economy.
Outbooks is a leading bookkeeping firm in Australia. It’s the primary choice of thousands of accountants in Australia for e-Invoicing purposes. Get in touch to book an appointment!
Contact us on +61 451320102
The blast in the information that has started the Fourth Industrial Revolution, a period when business operations will get changed by digital technology frameworks, has empowered a few innovation trends to create. Each business can use these significant technologies. They should focus on using these technologies to accomplish the organisation’s business system. Further, it’s also necessary that accountants leverage technology.
While the worry is obvious among the bookkeepers, the use of correct technology can avoid such worry(s). This includes the service operations software that integrates with the tools you require to streamline your business.
The right technology will automate and smooth out your everyday work process. Thus, keeping you from feeling disappointed, unmotivated, and muddled.
So, right away, there are different ways Australian accountants leverage technology.
Enterprise resource planning (ERP) systems
ERP systems make information easily accessible. Further, they hold activities between the various divisions of a firm. The data is made accessible through a typical database management system and shared through functional regions. For example, HR, accounting, sales and marketing, production, etc.
Accountants do the smartest thing by keeping their team and the production teams of their clients on the same page. They try to sync payment and invoices automatically from XERO accounts to any smart platform.
Through this, accountants find it very easy to get access to ledger codes, tax codes, and client details in one dashboard. This helps them to calculate and update their client’s business information. Simply think about the amount of time you’ll save with paperless tax forms which could otherwise cost you up to thousands of bucks every year.
Accountants leverage technology such as cloud-based accounting
Many bookkeeping service firms still utilise outdated software. This is what they’re familiar with. However, cloud accounting is changing the whole work process that includes:
- Lodging tax files,
- Organising source archives,
- Filing of tax forms,
- Audit and conveyance, and
All this can now get handled by an “all-inclusive resource” cloud-based innovation.
You collect the data in one place for less confusion. In the dashboard, there is a feature of the client access. It’s a typical interface where clients and accountants can work together. It also allows clients and bookkeepers to transfer and download records and speak with one another. Also, they can share information from anywhere with the device at any time.
Accountants Leverage Technology Such As Blockchain
One more trend affecting the eventual fate of bookkeeping jobs is Blockchain innovation. It’s a computer-based recording framework that utilises digital money inside a user-to-user network.
While Blockchain may have acquired fame due to bitcoin, the innovation has advanced significantly. It is another kind of bookkeeping ledger. It can get persistently refreshed and validated without the danger of being changed or corrupted.
Since Blockchain empowers clients to get to records continuously, make savvy contracts, and document transactions, it’s obvious why the framework is attracting the bookkeepers. Truth be told, many outsource accounting firms as of now utilise Blockchain.
To Sum Up
Technology has expanded. And so has the bookkeeper’s capacity to dissect statistical work. Improving the bookkeeper’s capacity to understand information productively and successfully without hardly lifting a finger is why accountants have started working as business counsel.
If you are also looking for an outsourced offshore bookkeeping partner for your firm, just contact our experts and let us know all your issues. +
Contact us on: +61 451320102
Being ambitious in the present business environment indicates developing the way you work and employing talents considering that. Accounting and bookkeeping firms always complain that they can’t find and keep a decent staff.
While the need for talented bookkeepers is occurring more than ever, the number of acceptable candidates is consistently decreasing. While senior bookkeepers leave after ageing out, others leave on their own. Further, today’s skilled graduates look for careers in different ventures.
The accounting & bookkeeping business is changing rapidly. Further, today’s individuals are seeing this industry as dull, less paid, and ailing in improvement opportunities.
Today, the majority of impressive candidates attract towards IT companies, the marketing world, and innovative start-ups. On the other hand, the individuals who stay in accounting rely upon to work in a firm for at least 4 years. It is excessively long for some yearning recent college grads except if they’re being prepared for ownership.
Most accounting firms favour somebody with a few years of experience. They need balanced bookkeepers who know tax law. Besides, someone who has an understanding of the value-added services and use numbers to drive the procedure. While misguided education policies have given rise to an excess of bookkeepers in Australia, they have less compliance knowledge and auditing skills.
How can your accounting and bookkeeping firm deal to stay reasonable in a quickly evolving industry? Here’s a quick guide for the same.
Nurture your current geniuses
Guide your current employees and reward them with regular incentives and development opportunities. Facing problems in offering the compensation of a bigger firm? Don’t worry, get inventive.
Some inventive ideas include holiday leave, company lunches, gym offers, and office trips. Remember, all these are highly appreciated by employees. Further, work-from-home (WFH) is something every employee would prefer in the post-COVID world.
Put your resources into what’s to come
Generate more clerk level jobs and give continuous training. While recruiting somebody with some experience appears simple, it’s likewise costlier. Xero, in its study, found that:
In 20 years, 80% of bookkeeping occupations will get automated.
However, some human interference will still hold significance.
An enormous amount of information analysis has featured a requirement for client advisory services; assisting them with figuring out what the numbers mean. The government has multiple tax obligations on the corporate world, understanding this employee will be needed.
Soft skills matter too in accounting
Indeed, you must check the core accounting skills of the candidate while hiring. However, don’t forget the importance of soft skills. For example, problem-solving, critical thinking, leadership, and risk analysis skills are what an accountant must possess.
Roles like client advisory and auditing requires more soft skills. Thus, your employees will feel more secure and satisfied if they possess sufficient soft skills.
Evolve client-accountant relationships
With technological advancements, clients have evolved themselves too. Nowadays, they don’t just rely on your tax lodging and compliance work. They demand more from your firm. They need help in budget analyst forecasting, financial planning, business scaling rather than simple record keeping and payroll handling.
You must advise your clients related to their needs and solve their queries to develop relationships. Keep their work on priority and engage more with them.
Outsource time-consuming tasks like accounting
Take the support of an accomplished outsourcing accounting and bookkeeping services firm. When searching for an outsourcing supplier, pick an agency sufficiently large to take on work immediately.
Allow one individual, like your office supervisor as a point of contact to guarantee consistency and clearness for your outsourcing group. Additionally, some outsourcing organisations will provide a free trial of their services so you can choose the best one.
How Outbooks can help?
Having proficiency in Australian tax laws, budgeting & forecasting, management accounts, and payment management; experts at Outbooks can set up the systems they require to begin within a few hours. Thus, overseeing most parts of the technical handover for your support.
In case you’ve limited staff and are facing an occasional spike in your responsibility, a 10-minute call is all it takes.
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