What is InvoiceNow?
4 minute read
InvoiceNow is a nationwide e-invoicing network by IMDA Singapore that aims to make invoicing for businesses smoother and more efficient. With this service, InvoiceNow automatically sends your invoice to a buyer’s accounting system via a secure network.
As long as both the sender and receiver are using InvoiceNow-ready software (such as Xero), e-invoices can be exchanged seamlessly and almost instantly contrary to sending a PDF file or online invoice through email. Thanks to an international standard that synchronises the two ends, InvoiceNow also works even if the two accounting systems are different!
Continue reading the article to find out more.
Why should my business use InvoiceNow?
InvoiceNow is a form of e-invoicing (or electronic invoicing) that involves the process of sending an invoice digitally. This replaces the need for manual invoicing that is often prone to:
- Human error
- Stacks of paperwork
- Duplicate payments
- Delayed payment approvals
- Manpower shortage
InvoiceNow helps to completely eliminate these problems through fast billing, clean data, automated processing, financing and factory, as well as an automated process to e-payments.
Source: IMDA Engage Newsletter Issue 2
What are the benefits of using InvoiceNow?
The first benefit of using InvoiceNow is that it reduces the likelihood of your invoices getting lost in the mail. e-invoicing ensures that invoices are sent and received directly to the other party’s accounting system. Thus, the chances of losing an invoice are practically non-existent.
Additionally, the online accounting software helps with administrative and manual tasks.
Finally, the most important benefit to the vast majority of companies — getting paid more quickly. By making it easy for customers to pay your company by using e-invoicing (and issuing invoices), your company gets paid faster.
Here are some other benefits from using InvoiceNow.
Source: IMDA Engage Newsletter Issue 2
Frequently asked questions
There are some uncertainties amongst business owners in using this system. Here are some of the most frequently asked questions (and solutions) to quell your concerns.
Since InvoiceNow uses the Peppol network that is European-based, can it work in Singapore?
Peppol only originates from Europe. However, it does work in Singapore and, in fact, is being adopted in several markets besides the European market. In fact, more than 30 countries use Peppol across all continents.
Is InvoiceNow the same as online invoicing?
No, there is a difference. Online invoicing refers to either a scanned copy of the invoice or a PDF file sent to the recipient by email. The whole process relies on manual data entry which is always prone to human error.
InvoiceNow is a form of e-invoicing which means that an invoice is created digitally in a supplier’s financial system. It is electronically transmitted via the network to the recipient’s financial situation, where it is processed without any human touch. This results in a safer, accurate, and more secure transmission of data.
Is InvoiceNow free and how can you sign up for it?
If you are a Sleek accounting customer, InvoiceNow comes with no additional charges!
To sign up for InvoiceNow, the only thing you need is a Xero subscription that you will already have if you are a Sleek accounting customer.
Do I need to register for InvoiceNow even if I am receiving e-invoices but not sending them?
It is necessary to register for InvoiceNow in order to receive e-invoices from suppliers/vendors on the network.
Is InvoiceNow safe?
Yes, it is safe and trusted. The security and integrity of the data exchanged through the Peppol network is fantastic thanks to encrypted transport that uses SSL and also a Public Key Infrastructure (PKI).
This kind of practice ensures that only parties with valid digital certificates can communicate on the Peppol network.
Can IRAS assess my e-invoices?
No, IRAS cannot access invoices under current law regulations. However, you still have to comply with any applicable IRAS tax regulations.
Making the switch to InvoiceNow could be the next big step for your business. Join 35,000 other local businesses to enhance your efficiency and save costs by joining the InvoiceNow network today!