More than 113,000 businesses are registered with their accounting service to receive electronic invoices (eInvoice) with Small Business and Manufacturing Minister Cameron Brewer saying switching to eInvoices is “one of the simplest, proven productivity wins.”
This comes as research from the New Zealand Institute of Economic Research (NZIER) shows that businesses can save at least 16 minutes on every invoice, or about $11 each by making the switch. The Ministry of Business, Innovation and Employment (MBIE) commissioned this research.
"The application of the time savings benefits estimates to the New Zealand context indicates that at the conservative (lower) end of full adoption of eInvoicing by businesses, is $800 million a year," NZIER said in its research report.
"This estimate indicates that the potential scale of efficiency gains is material in the context of the New Zealand economy."
'Making it easier to do business in New Zealand'
Businesses can register with the likes of Xero, MYOB or another accounting system to receive eInvoicing.
In a nutshell, eInvoicing lets organisations send and receive invoices directly between their accounting software. In doing so, this reduces data entry, especially if invoices are sent on paper. It can also be more secure than emailing attachments, which can be impacted by malware compromise and fraud.
The Government and online accounting software Xero have long been advocating for eInvoicing.
Speaking about eInvoicing on Tuesday, Brewer said for small businesses, cash is king.
“Late payments choke cashflow, and that’s exactly what this fixes. eInvoicing helps you get paid faster, cuts the admin and reduces invoice fraud and scams.”
The Government is not just asking businesses to make the decision - it is doing it as well, Brewer says.
Government agencies have a target of paying 95% of invoices within 10 working days. According to the Government, these agencies paid 95.9% of domestic invoices within 10 working days in the March quarter, across over 1.6 million invoices.
“When Government pays on time, that money flows straight through to the small businesses and subcontractors down the chain.”
And from January 2027, large businesses will have to send eInvoices when billing government agencies.
“This is about making it easier to do business in New Zealand … So Kiwi businesses have the incentives and the tools to get paid faster and lift productivity," said Brewer.
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