E-invoicing is not a new technology, and many western countries adopted it years ago.
It is also becoming mandatory in Asia-pacific and middle east regions. For example, Singapore introduced it in 2019, Taiwan & India in 2020, and e-invoicing in KSA became a mandate in December 2021.
Though the government is making e-invoicing compulsory, what are its benefits?
Keep reading to know the advantages of e-invoicing.
Benefits of e-invoicing
Increased accuracy
Electronic invoices ensure accuracy because of better visibility and fewer manual data inputs. In addition, it also eliminates duplicate payments because of end-to-end tracking. You can check invoices, validation, and payments in real-time, minimising mistakes.
Better compliance
When e-invoicing in Saudi Arabia is compulsory, it is essential to meet the compliance norms. All taxpayer businesses must adhere to e-invoicing rules in order to evade penalties.
Hence, it is ideal to invest in reliable software for e-invoicing and comply with rules efficiently.
Minimise the risk of fraudulent
E-invoices allow greater visibility in transactions and trade, which minimises the risk of fraud, human errors, and duplication.
Hence, businesses can avoid cross-validation and verification and save numerous hours.
Moreover, e-invoicing software like Pagero has multiple thresholds before finalising any invoice, which further improves accuracy and reduces fraud.
Efficient tracking
Paper invoices result in heaps of files, and the storage space spills because of them. Moreover, when you need to retrieve old data, you have to skim through all files, spending days.
On the contrary, e-invoices are easy to store and easier to track. They are stored in the software and can be retrieved by a simple search.
Save time and money
ZATCA e-invoicing is a structured format in which you need to add only essential requirements. Hence, you can save a huge amount of time as unnecessary tasks are cut out.
You also save time from transport and need not wait for an invoice to reach the destination. Instead, e-invoices can be transported with a few clicks and within seconds.
Furthermore, you can save money by getting rid of paper, pen, and ink. Postal fees are also eliminated.
Easy to control
When all your e-invoices are stored on a single platform, it becomes easy to track and control them. Moreover, you can also gain valuable insights into data from anywhere.
When your invoices are approved by ZATCA authorities, the government can also track them and reduce the fraud risk.
Faster payment
When buyers receive the invoice immediately, they can process your payment speedily. Hence, transactions become smoother.
Simplified archiving
Legal regulations state that organisations must store their invoices for audit purposes. However, the time length varies according to country.
Paper invoices can deteriorate in the long run, but electronic invoices can be kept intact as they are stored electronically. With proper data backup and mirroring, invoices remain secured
Conclusion
E-invoicing has become mandatory and they serve numerous benefits. Moreover, if you use Microsoft Dynamics, an AX 2012 to D365 upgrade can help efficiently streamline e-invoicing.
The major benefit of it is that it is a Green revolution. It saves paper, waste, and other non-degradable materials.
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