Singapore’s adoption of PEPPOL e-Invoicing makes us the first National Authority in Asia to adopt the standard.
Exciting news, but what exactly does this mean for businesses in Singapore?
First, let’s differentiate between e-Invoices and Digital invoices.
Digital invoices are unstructured that are, at best, semi-automatically completed, which means some level of human input is required. Common formats of digital invoices are PDF, Word document or Paper scans.
Electronic Invoices (e-Invoices) are structured (meaning all e-Invoices following the same standard would look the same), automatically created and can be viewed and processed digitally. Common formats for e-Invoices are XML and EDI.
With a Nationwide adoption of the PEPPOL standard, this will be the preferred standard for e-Invoices in Singapore, so organisations doing business in Singapore will need to be prepared for the future.
IMDA has provided a list of Access point providers and PEPPOL Ready solutions (TenderBoard is a PEPPOL Ready Solution!) organisations can use to get connected to the PEPPOL network, making it even easier for them to participate in e-Invoicing.
Why the shift towards e-Invoicing?
Adopting a new invoicing process could be difficult at the beginning (as with every transformation!), but there are benefits to having a nationwide adoption of the same invoicing standard.
Get Paid Faster
With a standardized format for every invoice, digital software systems are able to easily process invoices, resulting in faster processing, validation and payment times.
Increased efficiency in invoice processing
Invoicing systems will be able to automate verification and processing of invoices, removing unnecessary steps manual processes needed to reduce human.
Much of the cost of manually processing, sending, receiving and storing hardcopy or digital invoices will be removed with e-Invoicing. Not to mention the time saved on tracking lost/missing invoices. Now, your team can concentrate on more value-adding tasks for your organization.
Access New Financing Options
With e-Invoicing, the authenticity of invoices can be validated, providing accurate information for organisations to review and provide for financing. Financers providing alternative financing options such as Trade Financing/Factoring will also have peace of mind knowing the invoices are genuine and verified.
For your organization, being an early adopter of e-Invoices allows you to streamline your processes quicker and benefit from the advantages of an e-Invoice system. At the same time, not all your customers and suppliers would migrate over to an e-Invoice system at the same time as you. Therefore, you need to have systems in place that allow to send and receive both e-Invoices and digital invoices.
On systems like TenderBoard, they are built to accept and send out digital invoices AND PEPPOL e-invoices for users. The system would also be designed to know whether to send out a digital or PEPPOL e-invoice to the other party, so you wouldn’t have to worry about it.
As the government continues to prepare businesses here for a digital economy, e-Invoice is another step Singapore has taken; allowing businesses to speed up transactions while minimising manual processing and operating costs. The initiative was announced on May 2018 last year, and businesses are gearing up for the new PEPPOL standard.
If you’re curious to see how e-Invoice can help you, or thinking about adopting a PEPPOL Ready solution to help your business transactions, talk to us today!