E-invoicing for accountants and bookkeepers: a practical guide

Published Thursday 25 June 2026

Table of contents

• E-invoicing: what's changed for practitioners
• Setting up clients for e-invoicing
• E-invoicing in Canada
• Global e-invoicing requirements
• 3 e-invoicing benefits for your practice and clients
• How Xero supports e-invoicing
• Get your clients started with e-invoicing
• FAQs on e-invoicing

Key takeaways

• Electronic invoicing (e-invoicing) exchanges structured invoice data directly between accounting systems, cutting out manual data entry and reducing errors for your practice and your clients.
• Canada doesn't yet mandate business-to-business (B2B) e-invoicing, but the Canada Revenue Agency (CRA) is actively studying it for Goods and Services Tax/Harmonized Sales Tax (GST/HST) compliance. Getting clients set up now positions your practice ahead of any future requirements.
• E-invoices travel over secure networks like Peppol, which Canada joined in 2023. This opens up simpler cross-border invoicing for clients trading internationally.
• With the right software, e-invoicing can help shorten payment cycles, free up advisory time, and give you a clearer view of client cash flow.

E-invoicing: what's changed for practitioners

You're already familiar with digital invoicing, but e-invoicing introduces a fundamental shift in how invoice data moves between systems. Instead of exchanging static documents like PDFs or paper copies, e-invoicing transmits structured data directly from one accounting system to another through secure networks such as Peppol.

The practical difference for your practice: invoice data from clients' suppliers flows into accounting software automatically, with no rekeying and no chasing missing details. Every exchange is logged, creating a complete audit trail from creation to payment. This changes how you allocate team capacity across data processing and advisory work.

Peppol, the most widely used e-invoicing network, now operates across Europe, Australia, New Zealand, Singapore, and Canada. For clients who trade internationally, this creates a single interoperable channel for invoice exchange across jurisdictions.

Setting up clients for e-invoicing

Getting a client onto e-invoicing is straightforward, but there are a few practical steps to work through before they start exchanging invoices electronically.

1. Register on an e-invoicing network

Your client needs to register on an e-invoicing network such as Peppol. This is typically done through their accounting software provider. Once registered, they can exchange e-invoices with any other registered party on the same network, regardless of which software the other party uses.

2. Confirm software compatibility

The client's accounting software needs to support e-invoicing. In Xero, for example, the platform handles both sending and receiving e-invoices within the same interface. Check that the client's plan includes e-invoicing functionality before beginning onboarding.

3. Assess supplier and customer readiness

E-invoicing works best when trading partners are also on the network. Advise clients to start with suppliers or customers who are already registered, then expand as adoption grows in their industry.

4. Align record-keeping processes

E-invoices create a digital audit trail automatically, but your client's internal processes should still account for proper filing and archival. Confirm that their system stores e-invoices alongside other financial records in a format that supports future audits.

Your clients don't need to wait for a government mandate. Registering on Peppol today can simplify invoice admin and position them ahead of any future compliance requirements.

E-invoicing in Canada

Canada does not currently have a mandatory B2B e-invoicing requirement at the federal level. However, the regulatory landscape is shifting, and there are several developments worth flagging to your clients.

• The CRA published a Sales Tax E-invoicing Feasibility Study evaluating how e-invoicing could improve GST/HST compliance and reduce the tax gap.
• The CRA's Corporate Business Plan for 2025 to 2028 includes advancing e-invoicing opportunities as part of its broader digital compliance strategy.
• Canada joined the Peppol network in 2023, signalling a commitment to interoperable e-invoicing standards and opening the door for Canadian businesses to exchange e-invoices with international trading partners.
• CRA regulations require businesses to keep invoices and supporting records for a minimum of six years, whether those records are paper or electronic.
• At the federal level, e-invoicing is currently used in public procurement (business-to-government), but no B2B mandate has been introduced yet.

Even without a mandate, early adoption gives your clients a head start. Setting up e-invoicing processes now means less disruption if requirements change, and immediate benefits in reduced admin and faster processing.

Global e-invoicing requirements

If your clients trade internationally, understanding how different countries approach e-invoicing helps you guide them through compliance. Most countries fall into one of three models.

• Network-based model. Businesses use approved e-invoicing networks like Peppol to exchange invoices. The network handles routing and interoperability, so trading partners can use different accounting systems and still exchange e-invoices seamlessly.
• Tax authority validation model. E-invoices must be validated by a tax authority or authorized provider before or shortly after they're sent. Countries like Brazil and Mexico use this approach, giving tax agencies near-real-time visibility over transactions.
• Direct exchange model. Businesses send e-invoices directly between parties without routing through a government portal. This offers flexibility, but businesses must maintain accurate records for potential audits.

Mandates are expanding rapidly. Belgium, for example, made B2B e-invoicing mandatory for value-added tax (VAT)-registered businesses from January 2026. Many European Union countries, along with nations across Asia-Pacific and Latin America, have either adopted mandates or are in the process of doing so. Staying informed on these developments helps you advise clients who operate across borders.

3 e-invoicing benefits for your practice and clients

Whether or not your clients face a regulatory mandate, e-invoicing delivers practical advantages for both your practice and the businesses you serve.

1. Faster client payments

E-invoices arrive in the recipient's accounting software within seconds. There's no lag from downloading a PDF, printing a letter, or manually entering transaction details. All the information a buyer needs to process and approve the payment is already in their system.

This can help shorten payment cycles for your clients. When invoices are complete, accurate, and easy to process, there's less back-and-forth over missing details and fewer delays before payment is released.

2. Less admin, more advisory time

Manual invoice handling eats into your team's capacity. Every invoice that needs to be opened, checked, and retyped into software is time that could go toward advisory work, tax planning, or practice development.

E-invoicing removes that manual step. Transaction details are captured automatically when an e-invoice arrives, so there's no data to rekey. This means your team spends less time on processing and more time helping clients with the strategic side of their finances.

3. Simpler cross-border invoicing

For clients who trade internationally, e-invoicing through a network like Peppol simplifies the exchange. Invoices follow a standardized format that's recognized across member countries, so there's no need to adapt formats for each jurisdiction.

As more countries adopt or mandate e-invoicing, clients who are already set up on a recognized network will find it easier to comply with new requirements as they emerge. This is particularly relevant for Canadian businesses trading with partners in Europe, Australia, New Zealand, or Singapore.

How Xero supports e-invoicing

Xero gives you a single platform to manage practice workflows and client accounting, including e-invoicing. There's no need for additional software or separate logins to handle electronic invoices.

• Integrated e-invoicing. Send and receive e-invoices directly within Xero. Incoming e-invoices appear as draft bills with transaction details already captured, so you or your clients can review and approve without manual data entry.
• Cloud-based records. All invoice data, digital records, and transaction history are stored in one place. Because Xero is cloud-based, you can access client records from anywhere, making it straightforward to review invoices, reconcile transactions, and prepare for audits.
• Practice and client tools. Collaborate with clients through shared access. They can see how their business is performing, upload documents, and track outstanding invoices. Tools like Xero's online invoicing also support automated payment reminders for clients who aren't yet using e-invoicing.
• Connected apps. Integrate with your favourite tools through the Xero Marketplace to extend your workflow without switching between platforms.

For clients who aren't ready for e-invoicing yet, Xero's digital invoicing features still help reduce admin. Online invoices can be tracked, reconciled, and matched to payments within the same software.

Get your clients started with e-invoicing

E-invoicing is a practical step toward reducing invoice admin, supporting faster payment cycles, and preparing your clients for evolving compliance requirements. Whether your clients trade locally or internationally, getting set up now puts your practice in a stronger advisory position.

As a Xero partner, you can access tools, training, and support to help your clients adopt e-invoicing and other digital processes. Join the partner program to get started.

FAQs on e-invoicing

Here are some frequently asked questions about e-invoicing for accountants and bookkeepers in Canada.

Can my clients use e-invoicing if their suppliers use different accounting software?

Yes, as long as both parties are registered on the same e-invoicing network. Peppol, for example, is designed for interoperability across different software platforms. The standardized data format means invoices can be exchanged and processed regardless of which accounting system each party uses.

Is e-invoicing mandatory in Canada?

Not yet for B2B transactions. Canada currently uses e-invoicing in federal public procurement, and the CRA is studying how e-invoicing could support GST/HST compliance. There's no firm timeline for a B2B mandate, but the direction of travel suggests it's worth preparing for.

What should I do if a client's suppliers aren't on Peppol yet?

Your client can still register and use e-invoicing with the trading partners who are already on the network. For suppliers who haven't registered, standard digital invoicing (sending invoices through accounting software) remains an option. As Peppol adoption grows, more of their supply chain will come online over time.

What is the Peppol network?

Peppol is an open, international e-invoicing network that enables businesses and government agencies to exchange electronic documents in a standardized format. Canada joined Peppol in 2023, and the network is widely used across Europe, Australia, New Zealand, and Singapore. Registration connects your clients to a global invoicing infrastructure.

Does e-invoicing affect how I handle GST/HST for clients?

E-invoicing doesn't change the GST/HST rules themselves, but it can make compliance easier. Because e-invoices use structured data with standardized tax fields, the figures flow directly into your client's accounting system without manual entry. This reduces the risk of errors in tax reporting and simplifies the reconciliation process at filing time.