The Next Digital Disruption with Cash Flow benefits

The Accounting profession was one of the first industries to feel digital disruption with the introduction of browser based accounting software that included the ability to automate the coding of transactions via bank feeds vs the manual data entry method of coding.  Along with this came machine learning and AI,  providing the ability to set up coding rules within your bank feeds, and as bank feeds are utilised for coding, the machine learning has also improved.

In tandem with this came the receipt processing softwares such as Dext and Hubdoc.  One of the features here allows for copies of supplier invoices can be uploaded into the platform, coded and pushed into the accounting software.  Coding rules can be set up so  that in certain circumstances it will fully automate your receipt processing.  You can even process RCTI invoices and push them across into your accounting system.

So what’s next?  Wouldn’t it be great to improve your cash flow

E-Invoicing is a term that has been bandied about for a number of years, but is now finally gaining some traction.  It’s not just about creating an invoice in your accounting system, generating it as a PDF and emailing it to a customer, and it’s no longer just Government departments and big business that can take advantage of being able to:

  • Save costs
  • Have less errors
  • Improve reliability and security
  • Get paid faster

E-invoicing is the automated digital exchange of information directly between a supplier and buyers software.  This removes the need to manually enter the data from the buyers end thereby increasing the accuracy of the information being entered.  In these days of cyber fraud the fact that the exchange can only occur between registered e-invoicing businesses, it reduces the chance of fraudulent invoice claims being made.  Both the Australian Federal Government and the State Government are encouraging e-invoicing.

So how does this help your cash flow?

  • Federal government departments are paying eligible e-invoices within 5 days
  • The NSW State government has mandated e-invoicing for all government agencies by 1st January 2022 – under this mandate they will pay eligible e-invoices within 5 days
  • No delays in the buyer receiving a copy of their invoice for payment processing
  • Greater accuracy and reliability in the information coming directly into the buyers system for payment processing

For further information take a look at the following articles

Business – E-invoicing

ATO E-invoicing

 

 

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