Today, the need for digital transformation has become essential. The ideal electronic accounting technology for businesses streamlines the exchange of invoices between the buyer and the supplier and provides new business opportunities.
You must be familiar with invoicing if you are a customer or a retail or wholesale enterprise owner. The sales record is the main objective of the invoice in order to improve business accounting. It establishes the terms of payment and makes it possible for you to get paid more quickly for your work.
E-invoicing, often known as an “Electronic Invoice,” is a computerised invoice for products and services. All business-to-business and business-to-government transactions require the issuance of this document.
Electronic invoicing is a crucial component of every firm using the GST taxation system. Businesses must comprehend the idea of e-invoicing, and selecting a suitable software is necessary.
So here’s a guide to all the must-have features so you can rapidly acquire what works best for you.
Points to keep in mind in the Decision-Making Process:
● Requirements
The first step in choosing an e-invoicing solution is to understand your specific requirements. What features and functions do you need in an e-invoicing solution? Do you need the ability to send and receive invoices electronically, automate invoicing processes, or integrate with other systems? Having a clear understanding of your requirements will help you choose a solution that meets your needs.
● Integration
Another important factor to consider is integration. How well does the e-invoicing solution integrate with your existing systems, such as your accounting software or ERP? A good e-invoicing solution should seamlessly integrate with your other systems to help streamline your invoicing processes and improve efficiency. Businesses can gain greater insights from their data with the aid of built-in analytics and a customizable dashboard. Everyone is curious about the state of their company. E-invoicing, E-way bills, GST, and bookkeeping data can be used to create the comprehensive reports required to obtain company insights.
● Identifying IRN, QR Code, and Digital Signature
The IRP (invoice registration portal) should be able to receive the necessary data from your accounting software in order to generate an IRN (Invoice Reference Number) for an invoice. The supplier’s GSTIN, financial year, document type, and number are among the details needed to create the IRN. As one of the mandatory fields in the e-invoice format, your system should be able to recognise this IRN on the invoice PDFs.
The IRP would enable the creation of B2B invoices and create QR codes for companies with a combined annual revenue of 100 crores. These QR codes ought to be automatically attached to the invoices by your system.
A digitally signed copy of the e-invoice will also be provided to you by the IRP as part of the validation procedure, and your software should be able to recognise and read it. This is your declaration that the submitted invoice is legitimate; you now can use it as a guide while preparing your returns.
● All Validated IRP Invoices should be linked to Accounts Payable and Receivable Modules
Your accounting software should allow you to link the Validated IRP Invoices to Accounts Payable and Accounts Receivable Modules. This will enable you to pay your bills on time. You must make the payments within 180 days after the date the invoice was generated if you intend to claim Input Tax Credit (ITC) on the invoices. In order to remind your debtors to make payments, your system should also assist you in keeping track of when they are due.
● User-friendliness
It’s essential to choose an e-invoicing solution that is easy to use for both you and your customers. A user-friendly solution can save you time and reduce the risk of errors or inaccuracies. Consider the interface and user experience of different e-invoicing solutions and choose one that is intuitive and straightforward.
● Security
E-invoicing solutions handle sensitive financial information, so it’s crucial to choose a solution with robust security measures. Look for a solution that uses encryption and secure data storage to protect your financial information. It’s also important to ensure that the solution has been independently audited and meets industry security standards. Your accounting software should offer security features like multi-factor authentication, the customer controls that allow you to exercise reasonable precautions while uploading information on the cloud, and appropriate notifications about threats from phishing and malware.
● Cost
When choosing an e-invoicing solution, it’s important to consider the cost. Compare the costs of different solutions and choose one that fits your budget. Keep in mind that the cheapest solution may not always be the best choice, as some solutions may have hidden costs or limitations.
● Support
Adequate support is critical when choosing an e-invoicing solution. Look for a solution that comes with customer service and technical support to help you resolve any issues that may arise. Consider the responsiveness and quality of support, as well as the availability of resources such as FAQs, user guides, and training materials.
● Scalability
As your business grows, your invoicing needs may change. It’s essential to choose an e-invoicing solution that can grow and scale your business. Look for a solution that can accommodate an increasing volume of invoices and has the ability to add new features and functions as needed.
● Compliance
Different industries and regions may have different regulations and standards for e-invoicing. Make sure that the e-invoicing solution you choose complies with any relevant regulations and standards, such as the EU’s e-Invoicing Directive. This can help you avoid costly fines and legal issues in the future.
Now that we have examined all the essential points to keep in mind while deciding on the E-invoicing Solution for your business, we would like to add that GenieBooks 100% Cloud Accounting and Inventory Management Software offers all of these functionalities. They make sure that everything is accessible to you for a very minimal upfront cost, from being user-friendly and fully automated to providing full compliance and professional support.
