Benefits of e-Invoice
Errors in e-invoice entries are possible. You can fix them in manuals if they happen. However, you cannot change an e-invoice after its creation. You can only cancel e-invoice and create a new one with corrected values.
Although e-invoicing is not a new technology, it is still crucial today. For example, several procurement organisations transformed into digital businesses during the pandemic and started using digital technology like e-invoicing for various factors.
For those unfamiliar, e-invoicing is the electronic exchange of invoice documents between a supplier and a buyer.
How Will E-invoicing Benefit Businesses?
Businesses will benefit from e-invoices in the following ways:
Error minimisation is the most beneficial advantage of electronic billing. A sizable gap in the GST data reconciliation is closed and filled by e-invoicing, which also decreases errors. In addition, you require less manual input and automation is improved using electronic invoice processing solutions in e-invoice systems.
Additionally, e-Invoices produced by one piece of software can be viewed by another. As a result, it makes interoperability possible and drastically lowers data entry errors compared to bills printed on paper.
Minimal Turnaround Time
E-invoicing enables you to access information without duplicate material and receive a single platform for handling all accounts payable information and operations. In addition, it allows your team to abandon jobs that are frequently repetitive and time-consuming by nature.
You can always use e-invoicing and much more with myBillBook’s solution to provide room for essential duties and increase productivity and turnaround time.
Easy Invoice Tracking
The simplicity of tracking bills is another benefit of electronic billing. The e-invoicing software controls when an invoice is sent, viewed, and paid, enabling real-time tracking of bills.
As a result, verifying the delivery and receipt of an invoice is easier. Additionally, certain e-invoicing service providers can help determine when the client reads the invoice.
The visibility of invoices, purchase orders, ancillary documents, and contracts is improved by tracking invoices and providing thorough audit trails. Greater transparency into trade and transactions also means a lower chance of invoice fraud, human mistakes, and duplication.
In addition, it can save countless hours and resources on cross-verification and due diligence when an effective system is in place, not leaving much room for such risks.
You may do away with the need for paper-based invoices thanks to electronic invoicing. As a result, you may cut expenses and waste related to paper-based procedures within your supply chain.
Reduced Tax Evasion
E-invoicing software helps you access invoice data in real-time, adding to the quicker availability of legitimate input tax credits. Consequently, it lessens the chance of invoice manipulation.
Including input tax credit and output tax data in e-invoicing software can help tax inspectors spot phoney input tax credits. Therefore, e-invoicing platforms lower the possibility of fraudulent GST invoices while ensuring legitimate ITC (Input Tax Credit) applications.
Insights on spend and savings
Effective tracking of every dollar spent and saved is made possible through e-invoicing. Thus e-invoicing enables the leadership and procurement teams to monitor cost centres, acquire strategic insights, and find further cost-saving opportunities, such as early payment discounts.
Higher Compliance and Data Integrity
E-invoices remove the possibility of fake bills by quickly validating their legality and providing the information required for audits and surveys by the tax authorities.
E-invoicing also facilitates a high level of compliance, in addition to assisting with the filing of digital invoices.
Negative Aspects of the E-invoicing System
The reduction of tax evasion is the primary goal of the deployment of electronic invoicing. However, the new system only supports B2B invoices, not B2C invoices, for electronic invoicing. Since no ITC is involved, B2C invoices have the highest frequency of scams. Therefore, you should implement a mechanism that enables customers to report non-compliant invoicing to stop tax fraud at its source.
I currently use regular invoicing software, which has a long turnaround time. Can e-invoicing help me tackle this?
Yes. The e-invoicing platform handles all your accounts. Hence you can use your team’s valuable time for more productive jobs rather than repetitive and time-consuming ones with the platform. And thus increase your productivity.
Does e-invoicing support B2C invoices?
No. It does not support B2C invoices since there is no ITC involved.
What is e-invoicing under GST?
An e-invoice is a Tax Invoice usually issued by every registered taxpayer. Still, it contains some additional information in the form of a QR Code.
Can e-invoicing help me, a tax inspector, spot fraudulent invoices?
Yes. E-invoicing ensures you a legitimate ITC application so that you quickly spot any fraudulent invoice if there is one.
How does e-invoicing minimise errors?
E-invoicing allows you to have minimal manual input. The automation offered helps you improve the process and limit all errors.