For years, we’ve accepted that invoices arrive by email.
A supplier creates an invoice, saves it as a PDF, attaches it to an email, sends it, and then hopes it reaches the right person. The recipient downloads it, uploads it into their accounting software, manually enters information, checks for errors, and eventually processes payment.
When you stop and think about it, it’s a surprisingly clunky process.
It’s also one of the reasons businesses lose time, make mistakes, and become vulnerable to invoice fraud.
That’s exactly why eInvoicing is gaining momentum across New Zealand.
More and more government agencies, large organisations, and small businesses are moving away from PDF invoices and towards eInvoicing. Yet many businesses still aren’t sure what it is, how it works, or how to get started.
The good news? If you’re using software such as Xero or MYOB, you’re probably much closer than you think.
What is eInvoicing?
eInvoicing allows invoices to move directly between accounting systems without being emailed as a PDF.
Instead of sending an invoice attachment, the invoice data is securely transmitted through the Peppol eInvoicing network directly into the recipient’s accounting software.
Think of it like internet banking for invoices.
The invoice travels electronically from one system to another without anyone needing to download, upload, rekey, or manually process the information.
Why is eInvoicing important?
Faster Payments
One of the biggest frustrations for business owners is waiting for invoices to be processed.
When invoices arrive directly inside accounting software, there are fewer delays caused by lost emails, incorrect data entry, or manual processing.
The faster an invoice reaches the right person, the faster it can move through the approval process.
Improved Security
Invoice scams continue to rise across New Zealand.
Traditional PDF invoices can be intercepted, altered, or spoofed through email. eInvoicing significantly reduces this risk because invoice data travels through a secure network rather than an email inbox.
Fewer Errors
How many times have you seen:
- Incorrect invoice numbers
- Mistyped amounts
- Missing supplier details
- Duplicate data entry
Because invoice information transfers directly between systems, there is far less opportunity for human error.
Reduced Administration
For Bookkeepers, this is where the real value sits.
Less time spent processing invoices means more time spent helping clients understand their numbers, improve cashflow, and make better business decisions.
Better Cashflow
Faster processing often leads to faster payment.
When invoices move seamlessly between systems, businesses can reduce delays and improve overall cashflow management.
How does eInvoicing work?
There are only two main steps:
- Register your business to receive eInvoices.
- Set up your system to send eInvoices.
To send an eInvoice, you’ll need your customer’s NZBN (New Zealand Business Number), which acts like the address for their accounting system.
Once both businesses are eInvoicing-enabled, invoices can move directly between systems.
Setting up your accounting software
How to set up eInvoicing in Xero
Step 1: Register to Receive eInvoices
In Xero:
Business → Bills to Pay → Automate Bill Entry → Register to Receive eInvoices
You’ll need:
- Your NZBN
- A nominated business contact
Once registered, your business is connected to the Peppol network and can receive eInvoices.
Step 2: Add NZBN Details
For each customer you want to eInvoice:
Contacts → Select Customer → Contact Details → Edit Contact → NZBN
You’ll also need to ensure your own NZBN is entered in:
Account → Settings → Organisation Details → NZBN
If registered for GST, ensure your GST number is recorded in your financial settings.
Step 3: Send an eInvoice
Create an invoice as normal.
Once you’ve selected a customer with a valid NZBN, you’ll see the option:
Send as an eInvoice
Simply:
- Complete the invoice
- Attach supporting documents if required
- Approve and send
If the customer cannot receive eInvoices, Xero will notify you and provide the option to send a PDF instead.
Receiving eInvoices in Xero
Incoming eInvoices automatically appear as Draft Bills within Xero, ready for review and processing.
How to set up eInvoicing in MYOB
Step 1: Register
In MYOB:
Settings → Sales Settings → eInvoicing → Get Started
You’ll need:
- Your NZBN
- Business name
- Address details
Agree to the terms and complete registration. Once registered, you’ll be able to send and receive eInvoices.
Step 2: Add Customer NZBNs
For customers you wish to eInvoice:
Contacts → All Contacts → Contact Type → Customer
Open the customer record and add their NZBN.
You’ll also need to confirm your own NZBN and GST number are recorded within your MYOB account settings.
Step 3: Send eInvoices
Create an invoice as normal.
Then select:
Share → Send eInvoice
You can attach supporting documentation if required and MYOB will track the status of sent eInvoices.
Receiving eInvoices in MYOB
Received eInvoices appear within Uploads, where MYOB can automatically create bills using the information received, reducing manual data entry.
Not Using Xero or MYOB?
Don’t worry – eInvoicing isn’t limited to Xero and MYOB users.
A growing number of accounting, ERP, invoicing, and business management software providers now support eInvoicing in New Zealand. In fact, many businesses are already using eInvoicing-capable software without realising it.
If you’re not sure whether your software can send and receive eInvoices, the first step is to check with your software provider or visit the eInvoicing New Zealand software directory. The directory contains an up-to-date list of software products that support eInvoicing and links to setup instructions for each platform.
If your software isn’t currently eInvoicing capable, don’t panic. New providers are being added regularly as demand grows across New Zealand and Australia. Your software provider may already have eInvoicing on their development roadmap, so it’s worth asking the question.
For Bookkeepers, this creates another opportunity to add value. A quick conversation with a client about their software could identify an easy win that improves efficiency, reduces administration, and strengthens their invoicing process.
The Opportunity for Bookkeepers
Many clients have never heard of eInvoicing.
Others assume it’s difficult to set up.
The reality is that for most Xero and MYOB users, getting started takes only a few minutes. Once established, eInvoicing can reduce administration, improve security, minimise errors, and help businesses get paid faster.
As trusted advisers, Bookkeepers are perfectly positioned to help clients make the switch.
The businesses that adopt eInvoicing early will spend less time chasing paperwork and more time focusing on what matters most – running and growing their business.
Common questions about eInvoicing
Do both businesses need to be set up for eInvoicing?
Yes. Both the sender and receiver need to be registered and eInvoicing capable.
Is eInvoicing free?
For most businesses already using modern accounting software, registration and use are included within their software subscription.
Do I still need PDF invoices?
You can continue using PDFs where necessary, particularly if a customer isn’t yet eInvoicing capable.
How do I find a customer's NZBN?
You can search the NZBN Register or ask your customer directly. Businesses managing large customer databases can also use the free NZBN Business Match service.
Need Support?
Whether you’re helping clients improve their systems, strengthen cashflow processes, or adopt new technology, NZQBA is here to support you.
Join our community of New Zealand Bookkeepers for practical resources, training, webinars, and advice designed specifically for the bookkeeping profession.
