What is e-invoicing?
E-invoicing is a way to seamlessly & electronically exchange invoices between software systems. This means that unlike emailing a PDF or a link to an online invoice, e-invoices are sent securely from Xero and appear in your customer’s accounting software, ready to be approved and paid. Recipients no longer need to manually enter invoice details, which saves time and may contribute to faster payment and healthier cash flow.
How does sending e-invoices in Xero work?
The sender creates an e-invoice in Xero
E-invoice is sent electronically via a secure network dedicated to e-invoicing
Customer sees the invoice within their software system ready to be approved and paid
Get your business set up for sending e-invoices in Xero
Sending e-invoices in Xero easy – just follow the steps below to get started:
Step 1: Update your organisation details with your ABN and if you have one, your branch number
Step 2: Update your customer's contact details with their ABN number
Step 3: Be sure that you’re using the new invoicing setting on your desktop in Xero as you can only send e-invoices from there
Tip: If you’re a government supplier, reach out to them directly to find out if they’re ready to receive e-invoices so you can benefit now from the government’s commitment to faster payment times
Quicker for everyone
E-invoices are almost instantly delivered into your customer’s software system, which eliminates the risk of your invoice getting lost or stuck in the in-tray waiting to be reviewed and paid.
E-invoices in Xero are exchanged electronically via a secure network protected by encryption and strict protocols reducing the risk of interception and fraud.
Bird’s-eye view of cash flow
Having all your incoming revenue in Xero gives you a bird’s-eye view of how your business is performing.
Explore these additional resources
Why governments are accelerating the e-invoicing economy
Xero has been investing in e-invoicing for a number of years and that's why we’re working with the big end of town to support faster payments for our small business customers.
What is e-invoicing and how do I get started in Xero?
Watch our latest video to see how your business can benefit from sending e-invoices in Xero.
Frequently asked questions
Unlike emailing PDF or online invoice, an e-invoice is sent directly from one accounting system to another via a secure e-invoicing network. When you sends an e-invoice from Xero, it will be delivered directly to your customer’s accounting software almost instantly, ready to be approved and paid.
There are two sides to e-invoicing — the ability for a small business to send an invoice from Xero directly directly to the accounts payable software of another business or government department, and the ability for a business to receive an invoice (bill) directly in Xero from a supplier.
E-Invoices can be sent between accounting software as long as both are connected to the same e-invoicing network, even if the buyer and supplier are using different accounting software. For example, e-invoices can be exchanged between Xero and non-Xero software.
E-Invoices can only be sent to a business or government department, as long as they are registered to receive e-invoices. Businesses will only be able to send an e-invoice if their customer is registered to receive e-invoices. Both the buyer and seller need to be using accounting software that is connected to the Peppol network. The e-invoice will only be successfully sent if the recipient is registered to receive e-invoices.
Initially, businesss will only be able to send an e-invoice from Xero to another business or government department in the same country. We will extend this capability to support international trade in due course, where markets are covered by the Peppol network.
Want to know more about e-invoicing in Xero?E-invoicing FAQs