E-Invoicing in Construction Industry
E-invoicing is going to shape the future, or it already has. The e-invoicing practices framed with peppol go have saved small to mid-sized enterprises from administrative problems.
Imagine how much money to waste to pay the intermediaries fees who are profiting from the particular transactions.
The study shows that if a country changes to e-invoicing with the peppol common framework, at times the companies within the country can save six to seven figures on yearly basis.
Many businesses in different industries also agree with this proposition.
The implementation of the right format which is compliant with the peppol set of standards will open opportunities to common entrepreneurs to join with the public sectors in the global trading community.
The custom connections can be very expensive in the old systems. But in the peppol access point, the costs will be the last thing you need to worry about.
Why is E-invoicing the future?
It is not exaggerating to link e-invoicing with the movement of Industry 4.0. One of the characteristics of the modern industry in the future is paperless transactions. Therefore, these solutions will help to remove the paper from the administrative process.
Not only to reduce the carbon footprint to preserve the environment, but also to save the operational costs since there is no need to waste money on the printed version of invoices.
Some businesses might have switched to a new habit like this. If your business hasn’t done it, it is probably the right time to evaluate what people can add value to your company or business.
Also Read: 4 Best Invoice Apps For Android
E-invoicing with Peppol
Many countries have announced to adopt the peppol go common framework for exchanging their business documents. It is only a matter of time until all of the entities are connected to Peppol.
In some countries, sub-central contracting entities might not be mandated to use Peppol but they can indirectly participate in the network.
In each country, there will be the local People’s authorities who are responsible to manage and monitor the members to keep them compliant with the particular standards.
For the private suppliers, there are three ways to send the e-invoices: via Peppol, via email, and via legal online portals. Meanwhile, for the public sectors, there are also three ways to send the invoices: via Peppol, via a legal online portal, and via email.
There can be exceptions for public entities who are operating in Europe. For instance, the Dutch public business should send the e-invoices through Digipoort or other providers.
Construction Invoice Best practice
Here is how the invoice should be conducted in the construction industry.
Punctual invoices deliverance
It is important to send the invoices on time since it will have something to do with the cash flow. As it is late to send the invoice, it can risk slowing down the payment process.
To Make matters worse extend, the project might be canceled as well. The delayed invoices will also delay the project process. This matter can prevent particular businesses from growing and expanding.
Before sending the invoices, the person in charge must double-check the accuracy and clarity of the information. Mistype can jeopardize the project in a second.
It is also important to pay attention to all details. Inaccurate invoices can result in losing track of the project. Friction can also lead to unnecessary expenses.
Short payment terms
Gone are the days when the suppliers could flex the long payment terms to preserve their clients. Well, it is not sensible because longer terms can cost higher.
The short payment term not only makes the process quicker but also saves more money in the process.
Rewards early payment, penalize late payments
the terms of payment should be fair for both involved parties. If one of them violates the agreement, the guilty party must be penalized.
But on the contrary, when the payment is early, you can reward the other party. Adding a discount for the payments can also be one of the best strategies.
Sending invoices is a great thing. But then, when it stays there without being checked, it will be a nuisance in the future. In the hectic core activities, invoices can easily be missed.
Therefore, following up on your message is a great idea. Send a message first to confirm the invoices. If you don’t hear from them for a couple of days, try to contact them by other means of communication.
It is so wrong to wait until the money is late to follow up.
The contractual rights can be the key to the best ethic of the deliverance of the service. Back charges protect both parties from having to pay for expenses they do not want to cover.
Benefits of Peppol e-invoicing in construction industries
So, how the contractors and subcontractors can benefit from the peppol e-invoicing solution? Here are the common perks that you can consider.
It is one of the best things about people solutions. It is very easy to adopt this into any business and government agency. No matter what industries that the business runs, it is always easy to incorporate the PEPPOL.
Even when you need help from scratch, all you need to do is to contact Galaxy Gateway for your inquiries and request. They will handle the rest.
Improve your business productivity
The bilateral transactions have some prone factors to hinder the effectiveness in the business operation. But the problem is no longer significant with the help of the peppol e-invoicing. All of the exchanges are conducted in one single location.
It unlocks the ability to communicate with other parties across the globe. Back then, problems arose because of different formats between the different systems. But with the peppol framework, it is no longer a problem to worry about.
With the peppol framework help, the invoices tend to get paid earlier, compared to the conventional invoices. Cutting down the transaction time is really short, it can make the business grow and expand faster.