During the Budget 2018 speech earlier this month, Finance Minister Heng Swee Keat announced that e-invoices could soon come into play for SMEs in Singapore. This initiative could help establish a framework to support small-medium sized companies in terms of productivity and managing their cash flows.
As Singapore move towards the digitalisation of operations, e-invoicing can help SMEs reduce operating costs, speed up transactions, minimise disputes and reduce errors. MCI also stated that it will be different from existing, digitised invoices and scanned invoices which still requires some level of human input to process. A 2017 US Federal Reserve Study indicated that 92 per cent of e-invoices were paid on time compared to 45 per cent of paper invoices.
This would mean that with e-invoicing, SME owners have better control over their payment cycles, resulting in better cash flow management, greater sustainability and growth for the business. Continue reading