What is e-invoicing?
e-Invoicing, or electronic invoicing, is a digital method of creating, sending, and receiving invoices directly between businesses’ accounting systems. Unlike traditional PDFs or paper invoices, e-Invoicing uses a standardised format that automates data exchange. It eliminates manual data entry, reduces errors and streamlines payment processes.
Where Does e-Invoicing Apply?
e-Invoicing is widely applicable across industries and business types, especially for organisations that:
- Transact frequently with other businesses (B2B): Ideal for maintaining efficient billing cycles and reducing administrative burdens
- Work with government agencies (B2G): Many governments now require e-Invoicing for compliance, making it essential for businesses dealing with public sector clients
- International operations: e-Invoicing helps businesses align with global standards, facilitating cross-border transactions and compliance with local regulations.
Benefits of e-Invoicing
- Automates the exchange of invoices, reducing processing time and manual intervention
- Minimises errors from manual data entry and mismatches in invoice information
- Invoices reach recipients faster, helping businesses get paid sooner
- Ensures adherence to local e-Invoicing requirements, particularly in countries mandating its usei
- Reduces use of office consumables, typically paper, printer cartridges and postage.
Xero’s Role in e-Invoicing
Xero supports businesses by providing a robust e-Invoicing platform with features that simplify the billing process, enhance flexibility, and improve cash flow. Its integration-friendly approach ensures compliance with regional standards while enabling businesses to maintain a professional and seamless invoicing experience.
Registering for e-invoicing does not mean you automatically have to send e-invoices. Sending e-invoices is a choice you make for each invoice. For updates, resources and guidance on getting started, visit the e-Invoicing hub on Xero Central.
Useful tips for Xero users
- If you have Dext connected to your Xero file, it’s worth holding off on registering for e-invoicing as the two are currently incompatible (if you get stuck, contact Carrick Aland’s Books team and we can sort you out)
- If you’re not registered for e-invoicing but another Xero user else is and sends you an e-invoice, you won’t receive it and there is currently no way to locate or recover it from the interweb.
Related Xero resources
- General overview of e-invoicing, and some info around e-invoicing in Xero
- Register to receive e-invoices (also instructions for how to deregister)
- How to send an e-invoice in Xero
Using Carrick Aland’s Books service, we develop a plan to capture all of your business data in a timely and efficient manner – this is vital to remain on top of your obligations and tracking your financial goals. Our digitised management and bookkeeping services help make your life easier because we streamline your bookwork and make sure you hit every regulatory deadline. From collating important documents to making key financial decisions, our proactive team communicates with you throughout the year to make sure your business doesn’t miss a beat. Get started with Carrick Aland Books here »
