What is E-Invoicing and Why Does It Matter in India?
E-invoicing is now available for B2B (Business to Business) and B2G (Business to Government) transactions, following the adoption of the game-changing GST Rule. E-invoicing is being rolled out in B2B transactions in the world’s largest economy, India, initially to tackle tax evasion.
The country’s modern taxation system has proven to be a boon to the country’s burgeoning economy. As the world’s largest democracy, India’s tax reform has not only strengthened the economy, but it has also made the taxation system more transparent than ever before.
Following in India’s footsteps, European countries are preparing to adopt similar policies for their businesses. Implementing an E-invoicing system would assist them in digitizing their economy, opening new doors of opportunity for their company in terms of revenue generation and job creation.
Electronic invoicing, also known as E-invoicing, is a method of processing and producing invoices in an electronic format using a common network used by buyers and suppliers. All B2B invoices will be electronically validated by GSTN after the introduction of the GST e-invoicing method, subject to some limitations. With the aid of the SAP Business One ERP Software, which has an e-invoicing module, all businesses across the country can produce e-invoices.
It will help the company grow while also ensuring that all financial transactions are transparent. The following are some of the reasons why E-invoicing is so important: –
- Helps you save time
The financial reports were not well organised prior to the introduction of e-invoicing. Many times, it was done manually or with the aid of a variety of tools. The possibility of errors increased as the documents were dispersed. To minimise the steps that were previously followed, e-invoicing was introduced to remove the chances of mistakes and save time.As a result, it saves both suppliers and buyers a significant amount of time. It also automates GSTR 1 fillings, allowing for substantial time savings.
- Cost Control:
If the world moves toward a digital economy, it places a greater emphasis on operating without paper. E-invoicing can be exchanged electronically with buyers and sellers with confidence because it is produced and authenticated by the government as a genuine invoice.
- Error Probability Is Reduced
There are more chances of errors when invoices are produced manually. As a consequence, it can lead to a lot of contradictions in business dealings. Looking for E-invoicing applications is the only way to prevent issues like these. With the support of apps, buyers and sellers will be able to ensure the highest degree of accountability in the entire business process.
- Customer Satisfaction
Customer loyalty is critical to every company’s success. E-invoicing will help you save up to 90% on transaction costs. Since it is paperless, consumers will benefit from early payment as well as the best offers for any order.
- Fraud probability is minimised
There are less or no risks of theft as E-invoices are tracked in real time. The introduction of e-invoicing has offered tax authorities a valuable weapon in their fight against fraudsters.
For a developing country like India, where tax evasion is a major issue, implementing E-invoicing would help to solve the problem to a large extent. Apart from that, it would help both organisations retain accountability in the long term. It will help to fuel the Indian economy and lead the nation toward growth and stability in the future.
As an ERP Software provider in India, we have efficient business management modules to help you automate and streamline your business process and give you real-time visibility of your business processes. What are you still waiting for? Let’s use SAP Business One to help you digitize your business.