e-Invoice is a system where B2B invoices are electronically verified by GSTN before being used on the shared GST site. Via the Invoice Registration Portal (IRP), every invoice in the electronic invoicing system has a unique identification number allocated to it. The threshold for e-invoicing in business-to-business transactions has been lowered from 10 crore to 5 crore, according to a May 2023 notification. As a result, beginning on August 1, 2023, you must create electronic invoices for every B2B transaction if your company’s annual revenue exceeds five crore rupees.
Automation :
E-invoicing software is designed to automate the invoicing process. Consider this while looking for e-invoicing software, and give options that let you automate sending and receiving invoices process on top priority. In addition to accelerating the payment period, automating the receipt and sending of invoices benefits your company by lowering expenses, improving scalability, ensuring that payments are made on time, and maximizing return on investment.
Integration with Existing Systems:
It is difficult to maintain a seamless data flow across your company if the e-invoice solution doesn’t work correctly with all or if some of your business systems such as accounting and ERP software can be easily integrated with e-invoicing software. Many electronic invoice systems need to be made to deal with intricate operational networks.
Make sure the vendor can offer you secure and smooth software integration if your company needs invoicing solutions to feed data into current systems. This interface removes the necessity for manual data transfer across various platforms, improving workflow overall. It offers a unified and coordinated method for managing finances inside a company.
Customization-
Bills are a crucial component of your branding despite being disregarded rather frequently. A company logo appears on even the most basic invoice. What kind of software is better than one that lets you easily customize information, make your own, or select an invoice design from a library without contacting technical support? It is essential to remember that different regulatory standards apply if you have clients or suppliers located abroad.
With built-in multi-currency and international capabilities, suitable e-invoicing software should always keep you compliant and spare you from headaches when handling taxes and foreign legislation. Customization features include adding company logos, adjusting invoice layouts, and incorporating unique branding elements. Additionally, the software should offer flexibility in adding custom fields or modifying existing ones to capture essential information relevant to the business.
Modern firms aiming for operational excellence and regulatory compliance now see e-invoicing software with automated data entry, customization, and seamless integration features. Businesses may increase productivity and long-term growth by enhancing security standards, developing a more transparent and efficient invoicing infrastructure, and optimizing their invoicing processes by employing these e-invoicing features.
FAQs-
What are the advantages of electronic billing?
Since e-invoicing is an automated service, the customer can no longer enter their invoice data manually. This lowers error, reducing the number of disputes and rejections of invoices. Invoices are verified digitally, ensuring accuracy and speedy payment processing for purchasers.
What is IRN and IRP?
The Invoice Reference Number (IRN) is a unique number produced by the Invoice Registration Portal (IRP) under the e-invoicing system, also called a hash. The hash is formed using an algorithm.
What is the seven-day limit for e-invoice?
A notice has been released by the GST Network imposing a seven-day deadline for reporting invoices and supporting documentation to IRP starting on May 1, 2023.
Who will be subject to e-invoicing?
E-invoicing applies to individuals registered under GST whose total turnover in any preceding financial years (2017-18 to 2021-22) surpassed Rs. 20 crore. Starting from August 1, 2023, it applies to those with a turnover ranging from over Rs. 5 crore to Rs. 10 crore.
