As per the latest e-invoicing guidelines, e-invoices are required to be issued by businesses with a turnover exceeding 10 crores, with effect from 1st Oct 2022. If you are wondering what this means for the business, we will help you out.
Businesses will now have to get a QR code and an Invoice Reference Number (IRN) from the IRP or Invoice Registration Portal for all mandated transactions with the earlier invoicing guidelines remaining the same. So, businesses will now need e-Invoicing software more than ever to make the transition smoother as per GST requirements.
In this article, we will discuss how eInvoicing Software can help simplify e-invoicing for businesses.
What is eInvoicing?
eInvoicing or electronic invoicing is a system where taxpayers generate B2B invoices that follow an e-invoicing format as authenticated by the GSTN (Goods and Services Tax Network). Once authentication has been completed, a specific IRN and digitally signed QR code is generated for all invoices by the IRP. The software on which we do all the combined process is eInvoicing Software.
The e-invoice first phase was introduced and applicable to businesses with a turnover limit of more than Rs. 500 crores beginning from October 1st 2020. In the second phase, businesses with a turnover of Rs. 100 crores or more began to issue invoices from January 1st 2021.
The third phase comprised businesses with a turnover of Rs. 50 crores and more starting from April 1st 2021. The Government further extended this system to businesses with a turnover exceeding ₹20 crores for e-invoicing limit as the fourth phase on 1st April,2022.
Advantages of eInvoicing Software for Businesses with 10+ Cr Turnover
With a high adoption of digital methods in the present days, eInvoicing is highly beneficial for everyone. A company has to deal with multiple transactions every day, which makes the requirement of e-way bills a must for all businesses. A comprehensive eInvoicing software is not only necessary for IRN generation but also for sharing invoices, managing e-way bills & more.
Here are the top 5 benefits of eInvoicing Software for businesses.
Saves Time
eInvoicing is a completely digital process which helps you to generate e-invoices within minutes. This helps save time, which is a major benefit for a higher number of businesses falling into 10+ Cr turnover. eInvoicing system has in fact reduced the time required to process, track and send out invoices. This has led to an increase in productivity for employees as they can now focus their time on other aspects of business that require attention.
Better Accuracy
For invoice details to be accurate, it should contain information such as bank account, valid GSTIN, and payee details. If an invoice rejected by IRP, it leads to invoice cancellation and regeneration issues for the entire team. Hence, to avoid such scenarios, e-Invoicing software helps businesses to maintain proper and verified records of supplier and customer data. The master data and information are taken from e-invoices directly. As data is not entered manually, there is little to no scope for error.
Integrate seamlessly with existing ERP system
eInvoicing software can seamlessly integrated with your existing ERP or billing systems. Also, This helps simplify your tasks as you do not have to worry about working on two systems at one time, separately. Information can fetched seamlessly from ERP to eInvoicing software for accurate billing and invoicing.
Undertakes all eInvoicing tasks
However, The best e-invoice software can streamline all eInvoicing activities including creating e-way bills along with the generating of IRN for every document. It generates IRN in bulk and ensures 100 precent data validation.
Accessible anytime and from anywhere
Your business might have its branches in different locations, or your employees might even be working from remote locations. However, cloud based eInvoicing software can solve the accessibility problem by being accessible anytime and anywhere. As all the information stored securely in the cloud, you can stay always updated with invoicing data.
Reduction in data entry errors
Under the e-invoicing system, all the invoices will be uploaded on the common portal. Once authenticated, they will transferred from the common portal to both the GST and e-way bill portals in real-time. As a result, there is no need for manual data entry while filing GST returns, thus reducing common errors.
Easy generation of e-way bills
E-invoicing software facilitates a seamless gateway to create e-way bills. This is because taxpayers just have to update vehicle details as and when moved on the road. The information in part-A of the e-way bill will automatically filled in from an e-invoice authorized by the GST portal.
Wrapping Up
In brief, it is safe to say that eInvoicing software is a fast and dependable solution to view, share and generate e-invoices for your customers. At the same time, it allows effective communication with GST systems in a hassle-free manner.