Could e-Invoicing be The Future?
Leading accounting software firm MYOB has predicted that the Australian government may mandate e-Invoicing to be used by ABN holders and businesses in Australia in the future.
e-Invoicing is a cloud-based solution that will digitally exchange invoices between a supplier and a buyer’s system using a dedicated and secure network. This will eliminate the need to generate an electronic or paper invoice.
The ATO mandated that all Australian Federal Government agencies must have implemented e-Invoicing by 1st July 2022. The APA is also strongly encouraging all levels of business to adopt e-Invoicing, though it is not currently mandatory.
This could impact the independent contractor market who would find themselves having to purchase and set up the relevant accounting system to meet new e-Invoicing requirements. Could this push the preference to be engaged as casual employees, rather than contractors? There are certainly some benefits to this for both the independent contractor and the employer.
Whilst there can be some trepidation around transitioning to employing supports rather than engaging contractors, it’s much easier than you’d expect. We have seen many of our participants and clients do this successfully using a third-party payroll service like Bespoke Lifestyles sister company Made to Measure Services.
Check out the MYOB article – A guide to eInvoicing in Australia in 2022
This is my revelation of the month! No more paper invoices, one day turn around to pay invoices and perhaps the transition of independent contractors to casual employees.
Let’s see what unfolds….
Ryan Bryer – Receptionist /IT administrator