The government published its
Information Economy Strategy last week (it can be found here: https://www.gov.uk/government/publications/information-economy-strategy). The 57 pages set out the vision for a
"thriving UK information economy enhancing our national competitiveness
with, among other things, a strong, innovative, information sector exporting UK
excellence to the world; UK businesses......confidently using technology, able
to trade online, seizing technological opportunities and increasing revenues in
domestic and international markets". The intent and programme are ambitious yet
vital if we are going to stay at the forefront of technological change and make
the most of the opportunities that change will present in the years ahead. I count myself among those who remember
computer printouts being introduced as working tools in the late 1970s and I'm
still struggling to grasp the concept of 3D printing as a form of manufacture
so, like you, I've experienced the huge change over the past few years. Indeed, it's not so long ago that the idea of
me writing these words on an iPad sat in a car would have seemed the stuff of
science fiction!
Anyway, back to the government
report which has a real gem hidden away on page 23. It says government wants to
make it easier for suppliers by encouraging the use of electronic invoicing. Its aim is for central government to use
electronic invoicing for all transactions. While not mandating suppliers at this stage,
it will look at ways to spread best practice and will track progress. It goes on to say that, to realise the full
benefits of e-invoicing, it is important that systems are easy to install and
use, and the pricing is flexible enough to suit the needs of diverse
businesses.
The ICM is increasingly
engaging with the UK National e-Invoicing Forum which pulls together a number
of e-invoicing providers, business organisations, and others with an interest
in promoting the use of e-invoicing. One
of the interesting outputs from the Prompt Payment Code (hosted and administered
for BIS by the ICM) is that the majority of complaints against signatories end
up identifying administrative issues in either the raising and submission of
the invoice, or the authorisation process at the recipient's end. I regularly talk
to SMEs, and particularly micro-businesses, who still appear to fail to see the
importance of raising invoices promptly and in line with the requirements of
the paying organisation. It can be a
pain to jump through hoops to meet exacting demands of a customer but that pain
fades into insignificance when set against the pain of running out of cash!
Implementing e-invoicing
systems may seem daunting but, once in place, the whole process can become
seamless allowing payment to hit on the agreed and expected day without further
intervention. The report is right in
identifying that systems must be easy to install and use, and it's encouraging
that providers have committed to look at ways to improve interoperability and
accessibility. Anything that helps add
to the certainty of payment is good for business and will help support economic
growth through improved cashflow. The
Prompt Payment Code (www.promptpaymentcode.co.uk)
drives better payment behaviour. Good
credit management practice is vital, and e-invoicing too can play its part. I'm looking forward to working with the UKNEF
and the e-invoicing providers in the months ahead as their products evolve and
awareness is raised.
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