How InvoiceNow Can Help Your Business
Despite the pandemic, many employees in Singapore still process their invoices manually. The invoices are usually sent by email as PDF documents, but occasionally they are sent by post, and finally manually keying the data into a database. This process is time-consuming and prone to errors.
To help firms and employees avoid the stress and time wasted on invoicing issues, IMDA Singapore is promoting InvoiceNow, which can deliver invoices from one finance system to another using the Nationwide E-delivery network, which is based on Peppol, an internationally-recognized protocol. This allows for invoices to be E-transmitted directly to payers via Paynow.
Furthermore, InvoiceNow automates the manual process of invoice entry and eliminates the potential for errors. To learn more, read the rest of the article.
Why should I change PDF E-Invoice to InvoiceNow?
A PDF E-Invoice is not an e-invoice. Unlike an e-invoice, a PDF E-Invoice cannot be processed automatically because it is not sent in a structured format. Also, it is usually sent by email. This is a one-sided operation. The recipient must re-enter the details into their accounting system (e.g., accounts payable). A better solution would be to automate data transmission between the supplier and buyer systems, potentially enabling InvoiceNow invoices to be paid seamlessly.
Source: IMDA
How does InvoiceNow benefit you?
1. Faster payment cycles
InvoiceNow Invoices are processed more quickly by both buyers and suppliers, which leads to faster payment. Faster processing leads to faster payment.
2. Minimize cost
InvoiceNow also helps companies save money on printing paper and allows them to be more environmentally friendly. Since invoice transactions are now conducted electronically, companies no longer need to print invoices to evidence sales transactions or for tax and audit purposes.
3. Increase your business efficiency
Using e-invoicing eliminates the need for data entry, reducing the potential for human error. Also, businesses can save time and resources by skipping steps such as verifying information, rectifying errors, and resolving conflicts. The processes have been simplified.
4. Less complex
UEN-based e-payment and e-invoicing applications, PayNow and InvoiceNow, share the same underlying UEN, which simplifies the process of moving invoices to payments.
5. International transactions
When other businesses are in the network, you can send e-invoices to overseas partners without any problems.
In Summary
InvoiceNow offers small and medium-sized businesses a way to reduce costs and free up time by helping them get paid faster. It also allows business owners to focus on innovation and growth, rather than spending their time on administration.
Source: ENGAGE Newsletter Issue 2 (Final) - IMDA
InvoiceNow Grants
To encourage businesses to use InvoiceNow, IMDA has introduced some grants that may be used by SMEs and enterprises.
1. InvoiceNow Transaction Bonus (ITB)
ITB is applicable to all businesses on the InvoiceNow network. Businesses can claim $200.
Eligibilty criteria:
Businesses that send a total of 10 e-invoices on the network within 12 months from their 1st e-invoice will receive a $200 bonus.
Receive $50 for your first e-invoice
Send the remaining 9 e-invoices and you will receive another $150
No application or claim form is necessary
The bonus will be paid directly to the grantee through PayNow Corporate
2. LEAD Connect Grant
LEAD Connect Grant applies to large enterprises with their finance/ERP solution. Enterprises can claim $30k.
Eligibility criteria:
Enterprises that integrate the InvoiceNow network with their own financial/ERP system within 12 months of work start will be eligible for the grant.
Entity has at least 200 business counterparties
Entity has its own ERP/finance solution, which must be connected to the InvoiceNow network through Access Point providers
Any enterprise that has received a LEAF-Chain Leader grant will not be eligible
No application required
The grant will be paid directly to the grantee through PayNow Corporate
3. LEAD Transact Grant
Lead Transact Grant aims to encourage large enterprises to bring their business counterparts into the network and transact with them. Enterprises can claim up to $40k.
Eligibility criteria:
Enterprise who is able to meet the minimum transaction tier, i.e. transacting with 25 business UENs as buyer or 250 business UENs as biller
Billers receiving LEAD Transact Grant will not be eligible for InvoiceNow Transaction Bonus (ITB)
As a buyer and/or biller, Enterprise can receive incentives
Any enterprise that has received a LEAF-Chain Leader grant will not be eligible
The grant period is 12 months starting from the grantee's first claim submission
No application is required. The grant will be paid directly to the grantee through PayNow Corporate
Connect to InvoiceNow with Acc Pro (Singapore)
E-invoicing software, like Xero or QuickBooks Online, allows you to send and receive e-invoices between accounting systems with InvoiceNow. Switching to InvoiceNow could be the next step in reducing your business's processes. For more information about InvoiceNow Package, contact us today.