Xero has acquired an e-invoicing infrastructure business as it looks to prepare for the inevitable rollout of e-invoicing across Australia.
Xero acquires e-invoicing business
Xero has announced the acquisition of Tickstar, an e-invoicing business that will allow the accounting software provider to connect to e-invoicing networks globally and host access points without relying on a third-party provider.
E-invoicing involves a digital exchange of invoices between a supplier’s and a buyer’s software or systems, and has been tipped to be a more efficient, secure and accurate way of processing invoices.
Xero customers in Australia and New Zealand will be able to send and receive e-invoices by April.
The full purchase of the Sweden-based Tickstar is set to cost Xero up to SEK 150 million ($22.88 million), compromising an upfront payment of SEK 60 million ($10.06 million), 50 per cent in cash and 50 per cent in shares in Xero Limited.
Xero’s latest deal comes as it expects e-invoicing to eventually become a global best practice standard and a natural part of the cloud accounting process.
The government has since committed to paying eligible e-invoices within five days and has mandated e-invoicing for all government agencies by July 2022.
Businesses of all sizes could also soon be forced to adopt e-invoicing as the government considers several options to introduce the digital exchange of invoices to the broader market.
The profession has been divided on the possibility of a mandatory rollout of e-invoicing, with the accounting bodies arguing that it will be an “unnecessary distraction” for businesses dealing with the fallout of COVID-19, while others believe it will deliver significant benefits for the economy, including time and cost savings.
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