Recent announcements from the Chancellor include a push for greater adoption of electronic invoicing (e-invoicing).
HM Revenue and Customs (HMRC) will launch a consultation aimed at promoting broader use of e-invoicing. This initiative aims to simplify business transactions, ease administrative workloads. Furthermore, and, perhaps most importantly for HMRC, reduce tax return errors, which can help ‘close the tax gap.’
While HMRC stands to benefit from businesses using e-invoices, there are clear advantages for businesses as well.
Benefits of E-Invoicing for Businesses:
- Improved Cash Flow: Accelerates payment times by automating the invoice approval process. Therefore, making it easier for businesses to receive payments quickly.
- Fewer Errors: Automation reduces the chance of manual entry errors in invoices, which can lead to delays or disputes in payments.
- Enhanced Productivity: With fewer administrative tasks, businesses can save time and focus on critical areas, like growth and customer service.
- Simplified Tax Compliance: Can help businesses maintain accurate tax records. This makes tax returns easier to complete and minimising the risk of discrepancies that could lead to penalties.
How to Get Started
Although the consultation has yet to launch, it’s worth considering a move to an e-invoicing system now. Many software providers offer affordable, tailored solutions for SMEs that integrate with existing accounting software, and you may find that the software you already use supports this way of invoicing.
Some of the accounting software that offer this already are:
- Xero – Save time entering your bills with eInvoicing software
- QuickBooks – E-invoicing: the ultimate guide to quicker invoicing
Here at NRB, we have a dedicated team that can help you with a smooth transition over to e-invoicing or help you get started on a brand new accounting software.
Further Information
If you would like more information on accounting software or how to get started with e-invoicing, please contact your usual NRB advisor or our bookkeeping team.
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