As part of the Digital Economy Strategy, the government is spending close to $30 million, on top of an $800 million investment in its Digital Business Plan, to help small businesses make the move to digital services.
The first place for many business owners to start this transition is with electronic invoicing that helps make tax time much easier. Want to know more about making the switch? Read on to find out more about the benefits of digital tax.
E-invoicing saves time and money
Government data reveals that paper invoices cost up to $20 more per invoice than if you did things electronically.
While paper costs are minimal, it’s the fact that e-invoicing is much quicker. Templates are ready-made, line items can be saved for quick use and regular invoices can be scheduled to remove staff time completely.
With some invoicing software, you can also sync things like expenses and time trackers to an invoice, meaning these items are automatically added when you next go to bill someone.
Expenses can be added more easily
While bank reconciliation makes adding income and expenses easier than ever, the real value is in the time saved when matching up receipts.
Rather than manually entering your data, you can simply scan your receipt and software like Dext can extract all the important information instantly.
E-invoices get paid more quickly
Sending an email is quicker than any other mode of delivery. Whether you use Australia Post, hand deliver your invoices or even just have to wait for your printer to churn them out, it’s quicker to send them electronically.
The sooner the invoice is in your client’s hand, the quicker they can pay it.
As well as that, any clients with unpaid invoices can have auto-reminders sent to them to prompt them to pay their overdue balances. Chasing up slow payers couldn’t be easier.
Be ready for tax time
By looking after your finances digitally, you can easily prepare for the EOFY. Your expenses will be categorised and logged, your invoices sent and marked as paid and your profit and loss report can be created with the click of a button. Digital tax services take the pain and hassle out of one of the busiest times of the year in the finance world, leaving you free to focus on your core business offerings.
This form of tax digitisation is also useful throughout the year as it can give a running estimate on how much tax you’ll be due to pay at the end of the year, so you can make changes to your PAYG accordingly.
Switching to digital tax and finances
Managing finances digitally is just one of a few ways that Australian SMEs can prepare for the end of the financial year. If you’re unsure how to get started, then we’d love to hear from you. You can also keep an eye out for the government’s Australian Small Business Advisory Services program that will help further explain the benefits of digital tax.
Going digital is a huge step in the right direction for your business. If you’re ready, then why not start with Dext Prepare? With our technology, you can transform the way you capture, store and manage your receipts, bills, invoices, bank statements and more. It’s simple business finance – which is what every business needs during tax season.