Electronic invoicing

 

E-invoicing refers to the digital exchange of invoice information directly between buyers and suppliers.. 

 

 

It could help businesses get their tax right first time, reduce invoicing and data errors, improve the accuracy of VAT returns, help close the tax gap and save time and money. It usually results in faster business to business payments, leading to improved cash flow and less paperwork. 

 

This will help cut down time and resources businesses spend managing their tax affairs so they can be more productive. It forms part of the Prime Minister’s Plan for Change for a tax system that supports economic growth. 

 

 

Xero see e-invoicing as the next digital revolution for small firms, simplifying how businesses invoice customers and get paid faster. Firms will save money on chasing payments, improve cash flow and reduce fraud risks. 

 

a published business research report from Sage* shows that e-invoicing streamlines routine tasks like data entry and tax filing, driving annual productivity gains of around 3% in the UK, supporting the government’s broader growth agenda. 

 

 

Even if e-invoicing isn’t yet mandatory, it’s worth exploring digital invoicing tools to streamline your business processes. 

 

Almost every cloud accounting provider, like Xero and FreeAgent already support e-invoicing, making it easier to get ahead of any future changes. 

 

 

At Chart Accountancy, we are familiar with various types of software and electronic invoicing options. If you haven't yet signed up for a bookkeeping software solution and require expert advice and support, please reach out to a member of our team at [email protected]. We will be happy to help.