What is eInvoicing and what does the Xero update mean for your business?

What is eInvoicing?

eInvoicing lets businesses send and receive invoices electronically, directly between accounting systems. Instead of emailing a PDF that someone else has to manually key in, an eInvoice arrives straight into the recipient’s software as a draft, ready to approve. It’s faster, more accurate, and more secure.

The New Zealand Government has chosen Peppol as the national standard for eInvoicing, and adoption is growing, particularly among government agencies and larger businesses.

How do you register for eInvoicing?

Before you register,  log in to Xero, go to Settings > Organisation Settings, and check that your business name and NZBN match the official NZBN Registry.  Then you simply click on the Set up eInvoicing link on the Purchases overview page.

You can check your details and learn more on the Xero eInvoicing page.

Does this mean you have to start eInvoicing?

No. Being registered on Peppol doesn’t change how you currently work. What it does do is allow your suppliers to send you eInvoices directly, and some may begin requesting that you’re registered so they can do this. You may also find customers start asking you to send eInvoices to them, though they’ll need to be registered first before that’s possible.

Will your details be made public?

Your business name, NZBN, country of registration, and a unique participant ID will be listed in the Peppol directory. Think of it like a business listing in a phone book. Personal details, financial information, and invoice data are not made public.

What about your suppliers or customers who don’t use Xero?

eInvoices travel across the Peppol network and land directly in the recipient’s accounting software, regardless of what system they use. It’s designed to work across different providers.

How will you know when an eInvoice arrives?

It will appear in Xero as a Draft Bill, ready for you to review and approve.

While you’re at it: make it easier for customers to pay you

eInvoicing is one way to streamline how invoices are processed. You can also connect online payment solutions like Stripe and GoCardless to your Xero invoices, giving customers more ways to pay and reducing the risk of payment fraud.

• Add a Pay Now button so customers can pay directly from their invoice
• Accept credit and debit card payments
• Set up direct debit with automated recurring invoices

If you have questions about eInvoicing or want to talk through whether online payments could work for your business, get in touch with the team at BWR.