Seamless exchange: InvoiceNow simplifies and streamlines the invoicing and payment processes between SME owners with Peppol-ready platforms. Photo credit: Unsplash
Invoices are the staple of any SME. If you run a business, you will need to issue and receive invoices to and from your buyers and suppliers respectively.
In the push for digitalization that was made more urgent due to the pandemic, e-invoicing is the next logical step that SMEs need to take.
Despite this, many companies still continue to process their invoices manually. But it is never too late to make the transition to e-invoices.
The question is: With so many e-invoicing platforms that can be found with just a quick search online, which presents the best e-invoicing solution for your business?
InvoiceNow, which was originally known as Peppol (Pan-European Public Procurement On-Line) e-invoicing, was launched by the Infocomm Development Authority of Singapore (IMDA) in 2019.
An e-invoicing method that is used nationwide, InvoiceNow allows invoices to be encrypted and directly transmitted electronically in a structured digital format between various finance systems.
Data is exchanged seamlessly between buyers and suppliers through a framework based on the Peppol international network. This eliminates the need for both parties to key in the data manually from their side.
InvoiceNow also standardizes the invoice format between buyers and suppliers.
Any supplier who has a Peppol-ready platform and registered for e-invoicing can receive your invoices.
You can find out more about the Peppol system here.
Here are six reasons why InvoiceNow is a viable e-invoicing solution for your business.
1. Streamlines the invoicing process
Keeping track of your invoices manually can be a tedious, time-consuming and messy business.
InvoiceNow simplifies and smoothens the process of sending and receiving invoices through your finance or accounting system, saving you time.
2. Allows you to get paid more quickly
The biggest advantage for SMEs that use InvoiceNow is that the system can offer e-payments via PayNow.
After you issue an invoice via InvoiceNow electronically, the buyer can pay through PayNow, hence increasing your chances of receiving payment more quickly.
3. Safe payment process
Get validated across different financial systems easily through the use of Unique Entity Numbers (UENs) for InvoiceNow and PayNow. Your unique Peppol ID will be tied to your UEN.
4. Reduces grunt work and the possibility of human error
When you keep track of your invoices manually, mistakes are bound to occur now and then.
With an efficient system such as InvoiceNow, mistakes are less likely to crop up as invoices can be managed more easily. Even better, they are trackable!
5. Offers greater convenience
InvoiceNow allows SMEs to create, exchange and process payment requests automatically.
SMEs can transact with any company that is linked to the InvoiceNow network – whether they are based locally or internationally.
6. Cuts down on paper waste
InvoiceNow sends invoices to your buyers electronically, which reduces your paper usage and ultimately translates to cost savings for your company.
So what type of company should use InvoiceNow? Perhaps a better question would be which type of business shouldn’t – since the advantages of using the system are plain to see. Well, we can’t think of anyone, so follow these steps to get started.
For SMEs that already have an existing accounting or finance solution:
Step 1: Check if your existing finance or accounting system is Peppol-ready and included in IMDA’s pre-approved list of solution providers.
Step 2: Next, get the Peppol-ready solution provider to activate the InvoiceNow feature on the solution you are currently using.
Alternatively, you can select an Access Point Provider from this list to integrate PayNow into your current system.
Step 3: You can start to send and receive invoices through your accounting or finance system via InvoiceNow.
For SMEs that do not have an existing accounting or finance solution:
Choose any of these free solutions that come equipped with InvoiceNow capabilities.
For large local enterprises (LLEs):
LLEs that are already using an in-house accounting or Enterprise Resource Planning (ERP) solution can contact an Access Point Provider to connect to the Peppol network.
Apart from choosing a free solution or tweaking your current finance or accounting solution to include InvoiceNow capabilities, there is also another convenient option – checking if your bank offers InvoiceNow services.
In September 2020, IMDA announced it was working with DBS, OCBC and UOB to get more SMEs to start using InvoiceNow and PayNow to send and receive e-invoices, and collect payment respectively.
So if you have a business bank account with DBS, OCBC or UOB, good news – these banks are designated Access Point Providers that can help you get started with InvoiceNow.
When you subscribe to an Access Point Provider or solution provider, they will send the e-invoices on your behalf to an Access Point Provider that serves the party receiving the e-invoice.
Once this is done, both parties can then start sending and receiving invoices in a standardized format.
In other words, buyers or sellers just need to connect to one Access Point Provider to be connected to all businesses that are already on the network.
Who can apply: Any business owner who has a business account with DBS.
What you need to do: You need to have DBS IDEAL – the bank’s digital banking feature. Find out more.
Sole proprietors or private companies can sign up for it. Other types of corporations can sign up for it here.
How it works: DBS IDEAL is also available as an app on the App Store and Google Play. The digital token is free, while a physical token costs $50. Find out more about its services here, which include the options of Xero and PayNow.
What it costs: There are no application or usage costs.
What you need to know: Check out the frequently asked questions.
Who can apply: All OCBC Business Banking customers.
What you need to do: Apply for OCBC Velocity Digital Business Banking, which is free for OCBC customers. The e-invoicing function is integrated into the bank’s digital banking feature.
How it works: Log in to OCBC Velocity.
Under “Financial Management’, select “InvoiceNow Registration”. You will be directed to a form, which will automatically fill in your details. Check that your details are correct then click “Register Now”. Find out more.
What it costs: Free, as long as you have a business bank account with OCBC. There is no subscription fee or cap on the number of invoices you can send.
What you need to know: Read the terms and conditions here.
Who can apply: Any business keen to adopt e-invoicing – you do not necessarily need to have a business account with UOB.
What you need to do: Contact a UOB relationship manager on how to get started.
Or sign up with this form, after which one of UOB’s partner providers will contact you to start the onboarding process.
How it works: Whether you are a buyer or seller, the bank will help you get on the Peppol network and refer you to a suitable partner based on your level of digital readiness.
UOB will then facilitate your payments or provide financing between buyer and seller based on your invoices.
You can also opt for trade financing options and cash management solutions with the bank.
What it costs: “Preferential rates” will apply when UOB assists you with the onboarding process with one of its appointed solution providers.
What you need to know: Read about the benefits and the frequently asked questions.
Seamless exchange: InvoiceNow simplifies and streamlines the invoicing and payment processes between SME owners with Peppol-ready platforms.
Belinda loves thinking about random stuff, and collecting useless bits of facts and trivia. She often roots for the underdog, and believes the world needs more happy endings.
