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.
Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.
Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.