E-invoice is a system where B2B invoices are electronically verified by GSTN before being used on the GST shared site. Via the Invoice Registration Portal (IRP), each invoice in the electronic invoicing system is assigned a unique identification number. The threshold for e-invoicing for business-to-business transactions has been lowered from 10 crore to 5 crore, according to a May 2023 notification. Therefore, from August 1, 2023, you will have to create e-invoices for each business-to-business transaction if the figure of annual business of your company exceeds 5,000 rupees.
Automating :
Electronic invoicing software is designed to automate the invoicing process. Consider this when looking for e-invoicing software and prioritize options that allow you to automate the process of sending and receiving invoices. In addition to speeding up payment time, automating invoice receipt and sending benefits your business by reducing expenses, improving scalability, ensuring payments are made on time, and maximizing return on investment.
Integration with existing systems:
It is difficult to maintain a continuous flow of data in your business if the e-invoicing solution does not work well with all of your business systems or if some of them, such as accounting and ERP software, can be easily integrated into electronic invoicing software. Many electronic invoicing systems must be designed to manage complex operational networks.
Make sure the vendor can offer you secure and seamless software integration if your business needs billing solutions to feed data into current systems. This interface removes the need for manual data transfer between different platforms, improving the overall workflow. It offers a unified and coordinated method of managing finances within a company.
Personalization
Invoices are a crucial part of your branding, even if they are often overlooked. The company logo appears on the simplest invoice. What better software than one that allows you to easily customize information, create your own invoice, or select an invoice template from a library without having to contact technical support? It is essential to remember that different regulatory standards apply if you have customers or suppliers overseas.
With built-in multi-currency and international features, the right e-invoicing software should always keep you compliant and save you the headaches of taxes and foreign laws. Customization features include adding company logos, adjusting invoice layouts, and incorporating unique branding elements. In addition, the software must allow custom fields to be added or existing fields to be modified to capture information essential to the company's business.
Modern businesses aiming for operational excellence and regulatory compliance are now turning to e-invoicing software with automated data entry, customization and seamless integration features. Businesses can increase their productivity and long-term growth by strengthening security standards, developing a more transparent and efficient billing infrastructure, and optimizing their billing processes with these e-invoicing features.
FAQs-
What are the advantages of electronic invoicing?
As electronic invoicing is an automated service, the customer can no longer manually enter their invoice data. Errors are thus reduced, which reduces the number of disputes and invoice rejections. Invoices are digitally verified, ensuring accurate and timely payment processing for buyers.
What are IRN and IRP?
The Invoice Reference Number (IRN) is a unique number produced by the Invoice Registration Portal (IRP) as part of the electronic invoicing system, also known as a “hash”. The hash is formed using an algorithm.
What is the seven day limit for electronic invoicing?
A notice has been issued by the GST Network imposing a seven-day deadline for reporting invoices and supporting documents to the IRP from May 1, 2023.
Who will be subject to electronic invoicing?
E-invoicing is applicable to GST registered persons whose total turnover in previous financial years (2017-18 to 2021-22) has exceeded Rs 20,000. From August 1, 2023, it applies to those whose turnover is between more than 5 and 10,000,000 rupees.