Digital technology is not put at the disposal of citizens only, as many governments integrate e-services in their relations with companies. Such initiative was recently launched by the Minister for Communications and Information (MCI) in Singapore and it includes the creation of electronic invoicing regulations for companies operating in the city-state. E-invoices will help companies get ahead easier and will mean less manual work for the accounting department. The initiative was first presented in February, when the 2018 Budget was finalized and released.
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E-invoicing to enable faster payments for Singapore companies
Invoices are one of the most important components of the accounting department of a company and are critical when it comes for them to receive payments. However, introducing invoices manually is a time-consuming matter, without taking into considerations the mistakes which can be made. These are the two reasons behind the minister’s initiative.
Under the MCI’s vision, e-invoicing will mean automatically created, exchanged and processed invoices between buyers and suppliers on a digital format. Through e-invoices, Singapore companies will be able to reduce costs, to speed up payments, but also to benefit from new financing solutions.
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The advantages of e-invoicing
At the moment, the MCI will work together with the Infocomm Media Authority and the Business Federation in order to create the framework and to establish the standards which will be imposed to Singapore businesses.
Apart from the advantages mentioned above, the MCI also announced other advantages of e-invoicing, among which:
- – a higher degree of competitiveness;
- – fewer commercial disputes;
- – error-free processing solutions;
- – more on-time payments.
Singapore companies will also be able to track payment cycles easier and will lead to enhanced cash flow management. Also, e-invoicing system will be tailored to a company’s specific activities and needs.
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