Digital transformation is the new mantra. With the world going digital, the transactional process is also quickly catching up. From paper invoices to electronic invoices and advanced e-invoicing software, the journey has been steady worldwide. Indeed, the result is an accumulation of automation and efficiency going hand in hand.
Helping businesses transact better, e-invoicing has opened new avenues. How? By automating the sending and sharing invoices between buyer and seller, record-keeping and providing businesses with a new platform to reshape their invoicing workflows.
As a rapidly growing economy, Malaysia is no exception to this trend. Malaysia is bringing an e-invoicing mandate from August 2024. This directive requires taxpayers from all horizons to transact with electronic invoices only. The failure of the same will carry penalties.
So, now that the new reform is here, what would you need the most? An e-invoicing software in Malaysia would be your greatest asset in this scenario.
With the implementation of e-invoicing becoming more prevalent, selecting the right e-invoicing software in Malaysia is crucial for businesses to ensure compliance, enhance productivity, and stay competitive in the market.
Read in-Depth:- E-Invoicing in Malaysia: Transformation’s Next Frontier
Let us take you through a quick checklist to make this decision with ease:
1. Interface For Better Adaptability
First things first, let’s be clear. Most of you are new to e-invoicing as a concept, and using complicated software is equal to disaster. Choose software that has an easy and uncomplicated interface. Why? Because that would help you navigate the e-invoicing process easily. So, do remember to choose software that will ease your processes and not increase your finance teams’ operational burdens.
2. Compliant with LHDN Malaysia
The e-invoices you generate will be sent to the Malaysian e-invoice regulatory authority/ portal, the LHDN portal. So, this brings us to choosing LHDN-compliant software. Your software would be your gateway to LHDN, from where the approved/ cleared e-invoices would be sent back. This connectivity is crucial. And so, choosing software that connects you to LHDN is a paramount condition.
3. Easy Integration That’s Compatible
Look for e-invoicing software in Malaysia that seamlessly integrates with your existing accounting or enterprise resource planning (ERP) system. This will ensure that there is smooth data flow between different business processes. Also, be mindful of the fact that your software provider can integrate with your ERP in minimal timelines. Many times, organizations’ work is hampered because the time taken to integrate with the system is too long, disrupting workflows.
4. Software That Provides Option to Bulk Upload
An organization regularly deals with 1000’s of transactions. Now, if you have to enter each entry manually, it would take you ages. So, the best option here is e-invoicing software in Malaysia that can bulk upload these e-invoices simultaneously. Also, it should be set to generate a QR code on every e-invoice all at once.
5. Customization E-Invoicing Software in Malaysia
Choose e-invoicing software that offers customization options to tailor the invoicing templates, layouts, and workflows according to your business requirements. This flexibility allows you to adapt the software to suit your specific invoicing needs and branding preferences.
6. Easy To Cancel E-Invoices with a Click
You might need to cancel e-invoices. The reasons could be varied: duplicate data entry, mistakes, wanting to cancel your order, etc. So, here, e-invoicing software in Malaysia that has the same functionality helps. Also, importantly, it shall be able to send the information to the LHDN portal immediately.
7. E-invoicing Solution That’s Operating on a Large Open Networks
E-invoicing solutions operating on large open networks leverage the power of interconnected systems and platforms. This helps in better and unhindered exchange of invoices and related financial documents among a wide range of stakeholders. Furthermore, these solutions are designed to function within extensive ecosystems where multiple businesses, suppliers, customers, and service providers can interact and transact electronically.
In such environments, e-invoicing solutions act as intermediaries, enabling the secure transmission of invoices across disparate systems and entities. They leverage standardized formats and protocols to ensure compatibility and interoperability. Also, they allow users to exchange invoices regardless of their preferred software or platform.
A perfect example of this would be PEPPOL. PEPPOL is an international network that enables businesses to exchange electronic documents. These document include invoices, purchase orders, and other procurement-related documents, seamlessly across borders.
8. Security Matters
Your e-invoicing providers shall follow the utmost security measures to keep your data private. Some of these measures include encryption and authentication to protect sensitive financial data from unauthorized access and fraud.
9. Analytical Capabilities of E-Invoicing Software in Malaysia
Over the course of using e-invoicing software in Malaysia and practices overall, you’ll quickly realize that e-invoicing is more than just generating, authenticating, and sending e-invoicing. It’s a tool that helps businesses operate more efficiently. It breaks down the comprehensive performance of your stakeholders, helping you understand and break down the important data. So, e-invoicing software in Malaysia becomes a tool for predictive analysis and comparative analysis. If your software can provide you with multiple reports with a graphical dashboard, it has the power to become a tool for growth.
10. Automation
The world is going digital, but let’s be clear. In today’s world, digital and automation go together. Auto-generation and auto-receipt of your e-invoices can really help you save time, effort, and money. You save manpower and let your experts concentrate on other core business operations while your software does the major e-invoicing work for you.
Final Words
With this new way of transacting, it’s crucial you also learn a new way of working and managing your workflows. E-invoicing is being implemented worldwide, and countries have seen major positive impact of this reform. So, now that the Malaysian government is gearing up to bring this reform to the country, businesses must educate and acknowledge the positive impacts of this.
Of course, the change takes work. But technologically advanced e-invoicing software in Malaysia like Complyrobo can really help you and your finance team ease through this change. So, our suggestion is to do your thorough research and choose e-invoicing software in Malaysia that best fits your organizational needs.
