If you’re a small or medium-sized business in Singapore, you’ve probably heard the terms InvoiceNow and Peppol more and more lately and for good reason. With Singapore’s push for nationwide digital invoicing, understanding how your accounting software fits into this ecosystem is no longer optional. It’s essential.
In this article, we’ll break down what Peppol and InvoiceNow are all about, why they matter for your business, and most importantly, how accounting software for SMEs supports these new invoicing standards.
What Is Peppol?
Peppol (Pan-European Public Procurement Online) is a global network that allows businesses to securely and consistently exchange electronic documents, such as invoices, using a standardised format. Despite the “European” origins, Peppol is now used across various countries, including Singapore, Australia, and New Zealand.
Peppol allows businesses to send e-invoices directly from one accounting system to another, without needing to email a PDF or rely on paper-based documents. It’s faster, safer, and more accurate.
What About InvoiceNow?
InvoiceNow is Singapore’s national implementation of the Peppol e-invoicing network, led by IMDA (Infocomm Media Development Authority). It’s tailored for local businesses and integrated with government agencies and accounting software vendors.
With InvoiceNow:
- You send e-invoices directly to your customer’s accounting software.
- You reduce the need for manual entry, email trails, and lost invoices.
- You enjoy faster payments, better tracking, and simplified compliance.
In short, InvoiceNow is Singapore’s way of making Peppol easy and practical for SMEs, and it’s quickly becoming the standard.
Why Accounting Software Is So Important in This Shift
Nobody wants to type out invoice data manually. That’s slow, error-prone, and outdated. The goal of InvoiceNow is to allow accounting software, like Million Accounting, to handle everything automatically.
But here’s the catch: not all accounting platforms are ready for this. To support Peppol and InvoiceNow, your software must be:
- Peppol-Ready – meaning it’s registered with a certified Peppol Access Point.
- IMDA-Approved – so it meets local standards for InvoiceNow transactions.
- Capable of Creating, Sending, and Receiving e-Invoices in the Peppol BIS Billing 3.0 format (the standard used in Singapore).
If your accounting system doesn’t support this, you’ll either need to switch or integrate with a third-party provider. That’s why it’s so important to choose the right software early on.
5 Key Roles of Accounting Software in Supporting Peppol & InvoiceNow Standards
Let’s take a closer look at how accounting software supports this new invoicing system.
1. Automated Invoice Creation and Delivery
The right accounting software allows you to create an invoice in your system and automatically deliver it to your client via the Peppol network. No more exporting to PDF and sending via email because the whole process happens within your software.
It saves time and reduces the chance of errors (like accidentally sending the wrong invoice or amount).
2. Standardised Formatting
Peppol invoices follow a very specific format (Peppol BIS Billing 3.0), ensuring that all systems understand the same data in the same way.
Your accounting software handles the technical bits in the background—you just fill in the invoice like usual, and it gets converted into the correct format before being sent through InvoiceNow.
3. Real-Time Status Updates
Ever sent an invoice and wondered if it got lost in someone’s inbox? With InvoiceNow-ready software, you can track:
- When the invoice was sent
- When it was received
- Whether it’s been accepted or rejected
This real-time visibility can dramatically speed up payment cycles and reduce the need for chasing clients manually.
4. Integration with Tax and Compliance Tools
Good accounting software doesn’t stop at invoicing. It also:
- Helps with GST filing
- Prepares audit trails
- Keeps your books tidy for IRAS compliance
This matters because, in the future, IRAS and other government agencies may use data from the Peppol network to support automated tax reporting. If your software is already in sync, you’ll be in a much stronger position.
5. Eligibility for Grants and Government Support
Let’s not forget the financial perks. IMDA offers grants like the InvoiceNow LEAD Connect Grant and support under the Advanced Digital Solutions (ADS) programme for businesses adopting Peppol-ready tools.
Most of these require that you use software that’s:
- IMDA-recognised
- Integrated with a certified Peppol Access Point
- Actively processing e-invoices
So yes, your choice of accounting software directly affects your eligibility for government incentives.
How to Get Started
If you’re not already using an InvoiceNow-compatible solution, here’s how to get moving:
- Check if your current software is Peppol-ready.
Visit IMDA’s official website to view the list of approved solutions.
- Speak to your vendor.
Some may offer a module or upgrade to enable Peppol support, so you may not need to switch systems entirely.
- Apply for available grants.
You may qualify for funding to offset the cost of adopting InvoiceNow.
- Train your team.
Make sure your finance staff know how to create and send e-invoices properly through the new system.
- Start small.
Try sending e-invoices to a few customers first, then expand usage once you’re confident in the process.
Final Thoughts
The shift to digital invoicing in Singapore is about working smarter, getting paid faster, and being ready for the future. Your accounting software plays a central role in this journey, acting as the bridge between your day-to-day operations and the broader Peppol network.
If you choose the right platform now, you’ll save yourself the hassle of scrambling when InvoiceNow adoption becomes mandatory. Plus, you’ll enjoy all the benefits—fewer errors, quicker payments, and smoother financial management—along the way.
So don’t wait until the deadline hits. Explore your options, get your systems connected, and let your accounting software do the heavy lifting.
