From October 2020, the Central Board of Indirect tax and Customs (CBIC) has made e-invoicing compulsory for businesses and companies whose turnover crosses the threshold of 500 crores and in the January of 2021, the limit decreased to 100+ crores. Towards April, it was further implemented that the companies whose turnover crosses 50+ will also have to administer e-invoicing in their businesses.
Using E-invoicing has become a common B2B practice among companies. Small businesses can also utilize the digital process of invoicing with the help of an accounting software. The main plus point of E-invoicing is that it helps with the automation of the authentication process.
With the help of the right accounting software, more can be done rather than just inputting accounting data. If you have a company or business looking for the right accounting software to use, here are 7 points you can consider.
One of the first and foremost criteria of an accounting software is that it should be able to prepare and send out the necessary information to the IRP (Invoice Registration Portal) for creating an IRN (Invoice Reference Number) against an invoice. For creating an IRN pieces of information such as document type, document number, GSTIN number of the vendor, financial year are needed. The system software should be able to identify this information in a GST bill format pdf.
The software should be automatically able to attach QR codes to the invoices so that IRP can track and issue QR codes to the businesses passing the 100+ crores threshold. For the systemic validation, you will be able to receive a digitally signed e-invoice copy from IRP which the software should be able to recognize and receive. It confirms that the invoices submitted by you are valid and later can be used as a reference for return filings.
The standard format of e-invoice
Mostly an e-invoice has two fields: Required and Optional fields
The Required field is mandatory for generating an e-invoice while Optional fields are solely up to the seller or taxpayer. The most recent e-invoicing format suggests there 12 fields in which 5 are obligatory. They are:
- Supplier Information
- Receivers Information
- Invoice Item Details
- Basic Details
- Document Total
Identification of separate transactions
The e-invoicing software should be able to identify separate transaction types. For transactions like export, e-commerce operator supplies, Business to Business transactions and reverse applicable charges, the software should be able to identify all of them. When the e-invoice is generated the software should be capable enough to separate invoices based on the tax charged from the customers.
Data analytics is an essential part of e-invoicing software. Businesses can gain huge insights with the help of data analytics and dashboard information provided by the software. A holistic report can be made using reports from E-invoicing, bookkeeping data, GST bill format and e-way bill.
Data security is an important part of e-invoicing software. Multifactor authentications should be included in the software to keep your clients’ data secured and foolproof. Additionally, cloud storage and notifications on harmful malware will be beneficial for the company too.
While looking for an e-invoicing software for your business, a dedicated 24 hours client service is necessary to solve issues regarding GST bill format, software, invoicing and accounting.
Pricing is another major factor for accounting software. It will depend upon your budget, type of business, time, and profitability to opt for the right one. Different software comes with different sets of tools, you need to choose what is optimal for your company.
If you are looking for e-invoicing software, you should consider MyBillBook which offers one of the best e-invoicing and GST bill format software services. You will get all the necessary services for an ideal e-invoicing software service from them.