Read more at https://www.channelnewsasia.com/news/singapore/e-invoicing-initiative-in-works-to-help-businesses-get-paid-10016632
(Updated: )
Clifton Foo ·
In local context, outstanding payments are collected / received through future business dealings. When the 'boss' meet up with customers over ktv or dinner to foster relationship or talk about new orders, they chase payments. Doesnt matter if their invoices are in paper or electronic pdfs, collection of prompt and outstanding payments are achieved this way. Our govt is really out of touch. Singapore is NOT USA. Our SMEs do not conduct or chase payments by talking to computers.
Ricky Lim ·
Even one man operation need to keep track of :-
(1) what goods and services he buy - and file all the invoices
(2) keep track of debtors and creditors - and the credit term payment
(3) keep track of the stock level of goods, raw materials or parts
(4) keep track of cash inflow and outflow
--- without keeping track of all these, how would the boss know who to chase, what to chase at what amount and also when to order goods and parts?
Right business decision can only be made - only if right up-to-date information are presented.
SME that fail to keep up to date information - will face cashflow issue, stock ordering issue, business expansion issue as illustrated by this article or experience face by SMEs.
This is not rocket science - as anyone who run business can attest to this experience - even hawker who run their stall.
(1) what goods and services he buy - and file all the invoices
(2) keep track of debtors and creditors - and the credit term payment
(3) keep track of the stock level of goods, raw materials or parts
(4) keep track of cash inflow and outflow
--- without keeping track of all these, how would the boss know who to chase, what to chase at what amount and also when to order goods and parts?
Right business decision can only be made - only if right up-to-date information are presented.
SME that fail to keep up to date information - will face cashflow issue, stock ordering issue, business expansion issue as illustrated by this article or experience face by SMEs.
This is not rocket science - as anyone who run business can attest to this experience - even hawker who run their stall.
Like · Reply · 1m
Clifton Foo ·
Ricky Lim Conventional ERP systems like SAP and Microsolf Exapta print invoice clearly on physical copies, mail them to customers. Electronic invoicing refers to placing your invoices on Cloud database for customers to download. I dont think credit customers care about putting effort to check their payments to you to be honest. Sending chasers are still required.
Ricky Lim ·
Clifton Foo - SMEs cannot afford to use SAP nor know how to use SAP.
All businesses will need up-to-date information about cash flow - as they need to pay salaries, utilities or fixed overheard.
Bosses also need to track big payment or big revenue - as they will have impact on its cashflow.
Good bosses know their financial position at their fingertips - and this is only make possible if the system provide them up-to-date information.
Some bosses who think "they earn alot" - but still encounter cashflow problem - is because they don't keep track of their finances - and when payment come - they are in trouble - and need to scramble to take up loans with interest they can ill afford.
All businesses will need up-to-date information about cash flow - as they need to pay salaries, utilities or fixed overheard.
Bosses also need to track big payment or big revenue - as they will have impact on its cashflow.
Good bosses know their financial position at their fingertips - and this is only make possible if the system provide them up-to-date information.
Some bosses who think "they earn alot" - but still encounter cashflow problem - is because they don't keep track of their finances - and when payment come - they are in trouble - and need to scramble to take up loans with interest they can ill afford.
Like · Reply · 1m
Clifton Foo ·
Ricky Lim Its true that smaller companies cannot afford the likes of SAP but there are many off the shelves ERPs that offers inventory and customer management modules at a fraction of the cost. The key here is E-Invoicing that puts order entry info on CLOUD. There's no need to put your invoices on CLOUD because customers and suppliers do not bother going on-your-line to view your invoices. Customers and Suppliers here still require hard documents including PO and DO to make payment when your invoices come due.
Ricky Lim ·
Clifton Foo - that is not true, as customers will always want to go to the cloud to know what is the status of the purchase with different suppliers. Keeping hard documents like PO and DOs may get lost, run out of cabinet to store all the documents, difficult to do search etc.
Those who have embark on e-filing has improved productivity and reduce cost - as it reduce overhead by reducing storage spaces, filing, ease of search etc.
If a business buy an off-the-shelf software, it is for internal use and is not accessible by customers or suppliers.
In fact, administrative chores and cost reduce by a good percentage and bosses can spend more time in growing its business - rather than bog down by this hard document admin.
Those businesses who put their business in the cloud - experience more growth as customers and suppliers will transact more via the cloud ---- this is a true proven statistical fact !
Those who have embark on e-filing has improved productivity and reduce cost - as it reduce overhead by reducing storage spaces, filing, ease of search etc.
If a business buy an off-the-shelf software, it is for internal use and is not accessible by customers or suppliers.
In fact, administrative chores and cost reduce by a good percentage and bosses can spend more time in growing its business - rather than bog down by this hard document admin.
Those businesses who put their business in the cloud - experience more growth as customers and suppliers will transact more via the cloud ---- this is a true proven statistical fact !
Like · Reply · 1m
Ricky Lim ·
Ricky Lim ·
In fact, many people are conducting their business via web cloud - whether product and services information search, purchase transaction, operation and maintenance of customers and suppliers etc are all via cloud.
Business in cloud provide the greatest grow to business - as it transcend the constraint of brick-and-mortar shops that are restricted by physical spaces and location at a much lower cost but exponential growth via the cloud.
Business in cloud provide the greatest grow to business - as it transcend the constraint of brick-and-mortar shops that are restricted by physical spaces and location at a much lower cost but exponential growth via the cloud.
Like · Reply · 1m
Clifton Foo ·
Ricky Lim "that is not true, as customers will always want to go to the cloud to know what is the status of the purchase with different suppliers. Keeping hard documents like PO and DOs may get lost, run out of cabinet to store all the documents, difficult to do search etc".
Nope, by commercial law, you need to keep original documents such as DO and Invoices up to 5-6 years. If you lose it, just bring a re-printed document and visit your customer (for DO) and get them to chop and sign and file it properly. Going CLOUD only waste time and waste money. On the ground, people in SME still insist on old traditional way of life.
CLOUD benefits companies with great synergies. Like inter Govt departments, established trade partners like Boeing and American Airlines. In Singapore, SME is peanut, buying and selling small amounts from each other. Waste of time.
Nope, by commercial law, you need to keep original documents such as DO and Invoices up to 5-6 years. If you lose it, just bring a re-printed document and visit your customer (for DO) and get them to chop and sign and file it properly. Going CLOUD only waste time and waste money. On the ground, people in SME still insist on old traditional way of life.
CLOUD benefits companies with great synergies. Like inter Govt departments, established trade partners like Boeing and American Airlines. In Singapore, SME is peanut, buying and selling small amounts from each other. Waste of time.
Clifton Foo ·
Dude, studies has shown many times. The more paperless you got, the more paper you print. Email was meant to be paperless but what happened today? More and more filings.
I repeat again, CLOUD is only meant for businesses that do repeated purchases and billings with preferred partners. They get to see what you wish to share. If you are an MNC in the distribution of technology and electronics, you can go CLOUD with people like Microsoft, HP... But if you are a small medium enterprise, dream on. Not going to go on with you. SME has no 1 x massive customer or suppliers to make CLOUD solutions viable. The cost of going CLOUD and its upkeep is way too costly to implement and maintain. You dont want to buy a white elephant.
I repeat again, CLOUD is only meant for businesses that do repeated purchases and billings with preferred partners. They get to see what you wish to share. If you are an MNC in the distribution of technology and electronics, you can go CLOUD with people like Microsoft, HP... But if you are a small medium enterprise, dream on. Not going to go on with you. SME has no 1 x massive customer or suppliers to make CLOUD solutions viable. The cost of going CLOUD and its upkeep is way too costly to implement and maintain. You dont want to buy a white elephant.
Like · Reply · 2 hrs
Ricky Lim ·
Clifton Foo - I think you need to get the definition of an SME correct.
(1) SME will be defined as an enterprise with an annual sales turnover of under S$100 million, or that employs less than 200 workers.
(2) I personally have been dealing with SMEs of such categories who are conducting their business via web cloud - and this SMEs have been growing their clientele very rapidly.
Many of their business operations are done on the web.
Eg. scheduling and booking of date for services, ordering of goods, checking of appointment, printing invoices etc.
Those who insist on their brick-and-mortar - precisely are not able to grow.
In fact, most of the times, other than going out to hawker for food or buying groceries - most of the time, we have been spending time doing with business over the cloud web.
(1) SME will be defined as an enterprise with an annual sales turnover of under S$100 million, or that employs less than 200 workers.
(2) I personally have been dealing with SMEs of such categories who are conducting their business via web cloud - and this SMEs have been growing their clientele very rapidly.
Many of their business operations are done on the web.
Eg. scheduling and booking of date for services, ordering of goods, checking of appointment, printing invoices etc.
Those who insist on their brick-and-mortar - precisely are not able to grow.
In fact, most of the times, other than going out to hawker for food or buying groceries - most of the time, we have been spending time doing with business over the cloud web.
Like · Reply · 1m
Just found out that even hawker food can be deliver online via hawker apps - that partner with delivery services.
Groceries can also order online - for delivery.
All this cloud based mobile apps and online apps - has transformed brick-and-mortar business and grow their business phenomenally.
Those SMEs who refused to change and continue to stick to their traditional old way of doing business will be stagnant or even be drive out of businesss.
I am not speaking without facts - because i have come across many businesses or dealing with these businesses who have transformed themselves and saw their growth.
Groceries can also order online - for delivery.
All this cloud based mobile apps and online apps - has transformed brick-and-mortar business and grow their business phenomenally.
Those SMEs who refused to change and continue to stick to their traditional old way of doing business will be stagnant or even be drive out of businesss.
I am not speaking without facts - because i have come across many businesses or dealing with these businesses who have transformed themselves and saw their growth.
Like · Reply · 1m
Ricky Lim ·
And retail SMEs can sell their products online via Lazada - an online cloud platform for the SMEs to sell their product online.
Like · Reply · 1m
Axel Kok
Agreed to a certain extent that adopting e-invoicing platform is not likely to happen anytime soon for a large number of SMEs now. To be effective, this requires a complete mindset change of how things is functioning in SMEs.
To complete the E-invoicing process (assuming processes similar to NTUC & Gebiz), requires the process of issuing/approving of Purchase Order, posting of Goods Received Notes, posting of suppliers Invoices. Once this 3 steps in sequential order is completed, the system ought to be able to go through the payment process (this is another step which e-invoicing is unlikely be able to influence, since it depends on whether the SME cashflow)
Problem facing SME is also skillsets. IT skills is mostly lacking among the staff & to push for such system, the training is one thing, the mindset is another. This is perhaps the biggest challenge to SME.
To complete the E-invoicing process (assuming processes similar to NTUC & Gebiz), requires the process of issuing/approving of Purchase Order, posting of Goods Received Notes, posting of suppliers Invoices. Once this 3 steps in sequential order is completed, the system ought to be able to go through the payment process (this is another step which e-invoicing is unlikely be able to influence, since it depends on whether the SME cashflow)
Problem facing SME is also skillsets. IT skills is mostly lacking among the staff & to push for such system, the training is one thing, the mindset is another. This is perhaps the biggest challenge to SME.
Like · Reply · 4 hrs
Ricky Lim ·
Those SMEs who are versatile, forward-looking and able to adapt and adopt - are usually the one who are able to change their mindset and grow their business phenomenally.
Sometimes, SMEs who are bogged down by day-to-day operations will not have the know-how to breakthrough - and will require external assistance, or external consultants or even Government bodies help such as SPRINGs etc to enable the transformation into Digital eCommerce to transform and grow.
Those who say no right from the start without even finding how and without finding the potential growth laying ahead of them --- will be defeated right from the start - and risk business potential growth or may even threaten their current mode of business operandi.
As far as I know, many people will only search the web cloud on products and services without stepping out of their home.
Those business who are not adopting web cloud - will soon find their businesss being eroded or even face the possibility of demise.
Sometimes, SMEs who are bogged down by day-to-day operations will not have the know-how to breakthrough - and will require external assistance, or external consultants or even Government bodies help such as SPRINGs etc to enable the transformation into Digital eCommerce to transform and grow.
Those who say no right from the start without even finding how and without finding the potential growth laying ahead of them --- will be defeated right from the start - and risk business potential growth or may even threaten their current mode of business operandi.
As far as I know, many people will only search the web cloud on products and services without stepping out of their home.
Those business who are not adopting web cloud - will soon find their businesss being eroded or even face the possibility of demise.
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