Transitioning from Traditional Accounting to Digital
The 1st January 2025 is the deadline for taxpayers with annual turnover or revenue of more than RM25 million and up to RM100 million to implement e-invoicing into their businesses. Businesses may be scrambling for vendors that provide e-invoicing software to avoid any legality or summons from the Inland Revenue Board of Malaysia (IRBM).
You might think that this is too much of a hassle to purchase new software just for invoicing. You need to think about additional costs in implementing and training. So why can’t you stick to your existing accountants and have them handle the calculations since that is their job scope?
Before we jump deeper, let’s understand the concept of e-invoicing.
What is E-Invoice?
E-invoice is a digital representation of a transaction between a supplier and a buyer. It replaces paper or electronic documents like invoices, credit and debit notes.
An e-invoice contains the same information as a traditional invoice which records transaction data for daily business operations. This includes supplier and buyer’s details, item description, quantity, price excluding tax, tax and total amount.
E-invoicing vs Accounting
You may think that e-invoicing should not be difficult for accountants to handle since it involves calculations and documentation. You would think that your accountant would be enough to handle the legalities and tax. But is it?
Accountants have to handle many aspects of finances in a company and adding invoicing to their plate can stretch their capacity. They would need to send reminders to customers or businesses for due bills, and chase after debtors that refuse to respond to emails. This additional responsibility can become a distraction for your accountants instead and mistakes can happen frequently.
So what you can do to reduce these risks is by providing them with an assistant: e-invoicing software. It may sound like you’re spending extra, but this can ease your accounting processes significantly and lift the burdens from your accountant.
Why Do I Need E-Invoicing Software?
E-Invoice adoption is mandated by the IRBM for businesses for tax purposes, so the more reason you need to make sure you are following the correct format for submission. While it is good that you trust in your accountant’s capabilities, it is also recommended to prepare yourself with a solution that can lighten the load off your accountant. There are four reasons you should consider having E-Invoicing Software:
1. Integrated Invoicing Procedure
An efficient process allows room for automation and seamless e-invoice transactions. If you have been using an existing software, such as PropertyX, ContractX and HotelX by IFCA, the e-invoicing software has been integrated into the system for streamlined processes. With simple document creation, submission and automated data entry, your e-invoices will be delivered in a timely manner.
2. Simplified Tax Return Submission
Tax submission is no one’s favourite with their strict regulations and guidelines. Ensuring the numbers are accurate can be difficult especially when you are handling so many filing and accounting at the same time. Integrating e-invoicing with an existing system, such as accounting software, can ensure precise and efficient tax reporting.
3. Facilitates Operational Optimisation
Integrating e-invoicing software into your business will revolutionise your e-invoice operations. By streamlining your processes, you can drive efficiency and deliver significant time and cost savings for the e-invoicing filing. You don’t have to worry about late or lost submissions.
4. Digitised Financial Reporting in Real Time
Businesses don’t need to worry about missing hardcopy documents or misplaced files for financial reports. E-invoicing software helps you in centralising the information in one place, aligning your financial reporting and processes with industry standards. What’s more, the solution is also tailored to businesses of all sizes.
With e-invoicing made mandatory by IRBM, a software can significantly alleviate your burdens in keeping compliant to the tax regulations. You can streamline your process better by integrating your e-invoice software with HRMS and accounting software. IFCA software’s X series solutions are ready for businesses of all sizes to assist in e-invoicing.
