A guide to e-invoicing for accountants and bookkeepers

Published Thursday 9 July 2026

Table of contents

• How e-invoicing works
• The e-invoicing process
• E-invoicing in South Africa: what's changing
• E-invoicing requirements around the world
• E-invoicing benefits for accountants and bookkeepers
• How to prepare your clients for e-invoicing
• How Xero supports your e-invoicing workflow
• FAQs on e-invoicing

Key takeaways

• E-invoicing is growing across the globe, with many countries already mandating electronic invoicing for government and business transactions. South Africa's SARS is progressing its VAT Modernisation Programme, with a mandatory e-invoicing model expected around 2028.
• E-invoices are exchanged instantly between accounting systems via secure networks like Peppol, which reduces invoice processing time and could help your clients receive payments sooner.
• Even where e-invoicing isn't yet mandated, your clients can benefit from digitising their invoicing process now. E-invoices provide a clear audit trail, reduce manual errors, and simplify compliance.
• Accountants and bookkeepers who guide clients through e-invoicing adoption early can strengthen their advisory role and build more resilient practices.

How e-invoicing works

E-invoicing allows businesses and government agencies to send and receive invoices digitally, without the need for paper or emailed documents. E-invoices are sent on digital networks and land directly in the recipient's accounting software, which means less time spent on inputting transaction details.

Unlike traditional invoices that need downloading from emails and uploading to software, e-invoices automate these processes using structured data formats like UBL and XML. It's worth noting that PDFs and CSVs aren't considered true e-invoice formats, as they don't carry the structured data that accounting systems can read and process automatically.

For your clients, e-invoicing can open up international trade opportunities. This is particularly true for those who join the global Peppol e-invoicing network, which is used across Europe, Australia, New Zealand, Singapore, and more.

Some countries, like Brazil and Mexico, already have comprehensive e-invoicing mandates. Belgium introduced its B2B e-invoicing mandate on 1 January 2026. As more jurisdictions follow, accountants and bookkeepers should be ready to get clients set up on e-invoicing software and processes.

The e-invoicing process

The e-invoicing process follows a consistent pattern, regardless of which software you and your clients choose or the countries they trade in.

• Invoice creation: e-invoices are drafted as structured digital data, which means the information on them is standardised so they can be submitted digitally and received by the customer. With e-invoicing software, creating an e-invoice is as straightforward as creating a traditional one.
• Network transmission: when you or your client sends the e-invoice, it travels via a digital network. Peppol is one example: an open, secure network trusted by businesses and governments throughout Europe, Australia, New Zealand, and Singapore.
• Automated data capture: e-invoices are exchanged using digital signatures and encryption to keep data safe. Recipients get the e-invoice in their accounting software automatically, with all the transaction information filled out. In Xero, for example, the e-invoice appears as a draft bill ready to be paid.
• Better records and audit trail: e-invoicing provides a clear data trail, making it easier to trace documents and payments, and validate them during audits.

Your clients don't need to wait until e-invoicing is mandatory. They can register today and use e-invoicing processes to simplify their invoice admin.

E-invoicing in South Africa: what's changing

E-invoicing isn't yet mandatory in South Africa, but that's set to change. SARS has confirmed a multi-year roadmap toward mandatory e-invoicing and real-time VAT digital reporting through its VAT Modernisation Programme.

The 2025 Draft Tax Administration Laws Amendment Bill (TALAB) supports SARS's VAT Modernisation Project, paving the way for real-time e-invoicing. SARS is expected to reveal its mandatory e-invoicing model in 2026, with a likely launch around 2028.

For now, e-invoicing is permitted and already widespread in B2B transactions across South Africa. Many businesses are voluntarily adopting e-invoicing to streamline their processes and prepare for what's coming.

This creates a clear advisory opportunity. Clients who start preparing now will have smoother transitions when the mandate arrives, and your practice will be well positioned to guide them through it.

E-invoicing requirements around the world

Different countries use different e-invoicing models. Understanding these differences helps you prepare clients who trade internationally.

• Network-based model: businesses use specific e-invoicing networks, like Peppol. These secure networks allow different accounting systems to communicate, so your clients don't need to use the same software as their suppliers or customers.
• Tax authority validation model: e-invoices must be validated by tax authorities or authorised providers before or shortly after being sent. This gives tax agencies real-time visibility and helps prevent fraud.
• Direct exchange model: businesses send e-invoices directly between parties without government approval. While this offers more flexibility, businesses must maintain accurate records for potential audits.

E-invoicing and tax regulations

E-invoicing can help businesses and government agencies with tax compliance. The creation and transmission of e-invoices is completely digital, which removes the risk of mistyping transaction information into software.

E-invoicing also helps many jurisdictions with better tax collection and fraud prevention. When e-invoices are submitted via tax agency portals, these agencies get quicker visibility over transactions, and there's a clear audit trail for every invoice.

E-invoicing benefits for accountants and bookkeepers

When your clients use e-invoicing, you can spend less time on invoice processing and more time helping them with their cash flow. Whether there's a mandate or not, there's plenty to be gained from switching to e-invoicing.

1. Shorten the cash flow cycle

Late payments impact cash flow for small businesses on a global scale. E-invoices can be delivered to the recipient's accounting software in a matter of seconds, which makes it easier for clients to see exactly what's due and could help them manage their cash flow cycles better.

E-invoices use structured data, which requires the sender to include information that can be read, processed, and captured in the recipient's software. This means there's less chance of a drawn-out back-and-forth between clients and suppliers to confirm invoice details, and could help your clients receive payments sooner.

2. Reduce admin time

With traditional invoicing, the recipient still needs to open the invoice and enter the data into their own accounting system. This manual process takes time away from you, your clients, and their customers.

When you use Xero's invoicing features, e-invoices automatically appear as a draft bill for you or your clients to approve. This eliminates manual data entry, reduces the risk of errors, and means you and your team spend less time on admin and more time advising clients on the strategic aspects of their business.

3. Facilitate cross-border business

The global accessibility of e-invoicing means more countries have started accepting it as best practice, and sometimes as a mandatory standard. Many countries use the Peppol network, including Australia, New Zealand, and Malaysia.

The UK has signed multiple digital trade agreements with Singapore, Australia, and New Zealand, all of which reference e-invoicing. The UK-Singapore Digital Economy Agreement, signed in February 2022, aims to facilitate growth and collaboration in the digital economy through systems such as paperless trading, e-payments, and secure cross-border data flows.

How to prepare your clients for e-invoicing

With South Africa's mandatory e-invoicing expected around 2028, now is the time to start preparing your clients. Taking a proactive approach positions your practice as a trusted advisor, not just a compliance provider.

1. Assess client readiness

Start by reviewing each client's current invoicing processes. Identify who's still relying on manual invoicing or PDF attachments, and who already uses cloud-based accounting software. Clients with higher invoice volumes or international trade should be prioritised.

2. Choose compatible software

Ensure your clients are using accounting software that supports e-invoicing and connects to networks like Peppol. Cloud-based platforms like Xero make this simpler, as e-invoicing is built into the software rather than requiring a separate tool.

3. Set up Peppol registration

Guide clients through registering on the Peppol network. Once registered, they can send and receive e-invoices with any other Peppol participant, regardless of which accounting software the other party uses.

4. Train clients on the process

Walk your clients through creating, sending, and receiving e-invoices. Show them how incoming e-invoices appear as draft bills in their accounting software, and how this reduces manual data entry. A short training session can go a long way toward building confidence.

How Xero supports your e-invoicing workflow

E-invoicing does away with tiresome data entry. Instead of updating your clients' accounting systems manually, you can focus on advising and supporting them with their long-term financial goals.

Xero is a single piece of software you can use across practice and client accounting tasks. It's compliance-ready and can support you and your clients with e-invoicing mandates and digital processes, saving you time and freeing you up to focus on advisory work.

Xero gives you one central place to store digital records, track your clients' finances, and help them prepare tax returns. Because Xero is cloud-based, you can access client records from anywhere, provided you have an internet connection. These records flow into other Xero features and connected apps, so you can use accurate client data to compile reports and help clients plan for the future.

When your clients are ready to submit electronic invoices, you can do this from within Xero. There's no need to download additional software or learn a new programme. Collaborating with clients in Xero is simple: you can give clients individual access so they can see how their business is performing, and easily upload documents and data for you to review.

Automate admin like bank reconciliation and financial reporting, so you spend less time inputting data and more time helping clients understand the numbers. For clients who aren't ready for e-invoicing just yet, there are features for digital invoicing and automated payment reminders to encourage customers to pay on time.

As a Xero partner, you can manage your entire practice and client portfolio from one platform. Join the partner programme to access partner-only benefits, including a free Xero subscription for your practice, dedicated support, and tools to help you grow.

FAQs on e-invoicing

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

Is e-invoicing mandatory in South Africa?

Not yet. E-invoicing is currently voluntary in South Africa, but SARS is progressing its VAT Modernisation Programme toward a mandatory model. The mandate is expected to launch around 2028, so it's worth preparing your clients now to ensure a smooth transition.

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

Yes, but both your clients and their suppliers need to be using the same e-invoicing network, such as Peppol. The standardised format of e-invoices means they can be exchanged between different accounting software systems without compatibility issues.

What is the Peppol e-invoicing network?

Peppol is an open, secure network used to send and receive e-invoices globally. It's trusted by businesses and governments across Europe, Australia, New Zealand, Singapore, and other regions. Once registered, your clients can exchange e-invoices with any other Peppol participant.

How does e-invoicing improve my clients' cash flow?

E-invoices are sent instantly to accounting software, so there are no delays from the customer's side. All the information the customer needs to pay is immediately available in their system. This could help your clients receive payments sooner, as customers can process invoices without manual handling.

How do e-invoicing networks ensure security?

E-invoicing networks use a combination of digital signatures and encryption to keep data secure. E-invoices also provide a much stronger audit trail than traditional methods, making it easier to trace and verify transactions. This is more secure than emailing invoices as attachments, which can be intercepted or tampered with.