Digitization of documents has gained a lot of importance in the recent past. They have a lot of inherent benefits over keeping hard copies. They can be easily backed up on the cloud and they do not take a lot of physical place for storage. These are some of the many advantages of digitizing the entire documentation for any business. Following the same logic, invoices too are getting digitized. It not only makes payments easier but it also makes the entire process extremely fast and efficient. By integrating a QR code in an e-invoice, the customer or the client can pay you directly by using apps like Scan Pay.
Integrating a QR code into an e-invoice has much more applications. You can store data related to the entire transaction in the QR code. This data can be made available to the other party when they scan your QR code using apps like Scan Pay. The QR code can be created based on the following parameters:
∙ GSTIN of the supplier
∙ GSTIN of the recipient
∙ Invoice number of the supplier
∙ Date of the generation of invoice
∙ Invoice value
∙ Number of line items
∙ HSN Code of the main item
∙ Unique Invoice Reference Number/Hash
Having a QR code on your invoice, whether a physical invoice or a digital one, opens up immense applications. The functionality of the invoice increases substantially. In this article, we will discuss the reasons why integrating a QR code in your invoice is a great idea. First, let us have a brief look at what a QR code is.
What is a QR code?
A QR code is a two-dimensional barcode matrix that can store data and make it readable to the machines. The barcode usually stores a link to some website or an application. It can also store some static information which will be revealed as soon as someone scans the QR code from a compatible device. Today, almost all smartphones are capable of scanning QR codes.
Reasons for Integrating a QR Code in an Invoice
1. Higher speed
QR codes are extremely fast in response and they don’t require you to feed any data to make transactions. Hence, it makes the entire process faster. Customers can pay you the money by just scanning your QR code and they don’t need to feed specifics related to your bank account or your GST number. Your customer just has to scan your QR code using a payment application on their smartphones and then they can directly transfer money to your bank account. Applications like MyPlutus can be used to make the payment.
2. Safe
QR code stores data in an encrypted format and hence does not reveal the information related to bank accounts. This makes the entire process safer. Since you don’t have to feed data yourself, there is also less chance of any error in the transaction. The users can use Scan Pay to make the final payments.
3. Helps in Taxes
A QR code on an invoice can also be used to provide all the relevant information about the transaction to an Indirect Tax Officer. This will help the officer, with the help of handheld devices, to examine whether the transactions were valid or not.
4. Customer Satisfaction
Customers like to keep a digital copy of an invoice with all the relevant information on it, The preference for digital copies over a long paper invoice has been rising very rapidly. Providing an e-invoice to a customer with a QR code will make him feel even better. QR codes can be tracked and can store useful information like the location of the store or the details of the goods purchased. This will the most simple and yet effective way to make the life of your customer easy.
5. Book Keeping
Having a QR code on each invoice not only helps the customers but also helps the retailers. A copy of the invoice, with a QR code on it, which you keep for yourself, will help store data related to the purchase. All this data can be stored on the cloud using scanning devices and then can be analyzed at some later stages.
Conclusion
QR codes are a wonderful way of getting rid of the redundancy of feeding and storing data in every invoice. It makes life easier for both the customer and the retailer.
