Stop paying the price on invoicing

By Christina Walker, head of finance and systems at NMBS

Invoicing should be one of the most routine parts of doing business – dare I say, even unexciting. But for merchants and suppliers, it has now become a bit of a minefield, as it is increasingly one of the functions most exposed to risk.

Traditional invoicing methods across the merchanting sector have often involved a mix of paper documents, PDF attachments and manual inputs. That approach may once have been standard, but over the years it has also created more opportunities for delays, mistakes and security concerns.

As cyber fraud becomes more sophisticated, businesses across the construction supply chain are also under increasing pressure to ensure the invoices they receive are genuine, accurate and secure, before they can then be quickly handled. And in a sector where finance teams may deal with huge volumes of documents every day, the risks of phishing attempts, infected email attachments, or just incorrect billing hidden in inconsistent formatting are becoming much more complex to handle.

This is why secure e-invoicing really matters.

One secure source

At NMBS, the invoicing process has been designed to remove as much risk as possible, and we are doing our very best to help stop the fraudsters in their tracks. By giving merchants and suppliers one trusted route for processing invoices, NMBS helps reduce fraud exposure, improve efficiency and create greater confidence in every transaction.

NMBS has deliberately taken a highly controlled approach. Supplier invoices must be submitted in a prescribed format, with only PDF documents or electronic data interchange (EDI) allowed. If a PDF invoice is received, the document is automatically extracted from the email, screened and transferred into the system, without manual handling by the NMBS team.

Because invoice data is transmitted electronically, there is less reliance on re-keying information and less chance of documents being processed incorrectly. That saves time, improves accuracy and supports a smoother trading process for both merchants and suppliers.

Reducing the risk of fraud

Invoice fraud often succeeds by exploiting busy routines. A finance team that receives many emails each day may not always have time to question whether every attachment is genuine. If a fraudulent invoice looks convincing enough, or if someone clicks a malicious link, the consequences can be serious.

NMBS helps remove that burden.

Because invoices are delivered through one pre-agreed method, either EDI, email attachment or through the document centre, there is far less need for members to judge whether a document has come from the right place. This removes the uncertainty that can come from receiving documents in multiple ways from multiple places.

Security also extends to access controls. Logins are only given to users who have been verified on the NMBS database. If any changes are requested, NMBS checks with an authorised contact already on the system before updating the details. Password resets are managed through the user portal and sent to the registered email address, which means NMBS never becomes involved in handling user passwords directly.

To improve cyber security standards further, NMBS is supported by recognised information security standards, including Cyber Essentials and ISO 27001.

We are now aiming for 100% electronic invoicing, continuing our drive towards a safer and more streamlined system. Indeed, this will be mandatory across construction within the next few years anyway – the government has confirmed that mandatory e-invoicing for all VAT invoices will come into force from 1 April 2029.

From the government’s perspective, increasing the adoption of e-invoicing and driving greater automation promises to enhance productivity and cash flow, ease administrative burdens and help to collect the tax which is due. Expect to see a roadmap to implement these new rules at the next Budget statement.

Confidence in every invoice

For merchants and suppliers, secure invoicing is no longer simply an administrative issue. It is part of protecting the wider business.

The more invoice traffic that can be standardised, verified and handled electronically, the lower the risk of fraud, human error and inefficiency. In an increasingly digital trading environment, that kind of process is becoming essential.

Learn more about this on the NMBS website www.nmbs.co.uk