Ever since the eInvoicing concept was approved by the GST council, it has gained importance among the business community. While Word and Excel invoices might seem feasible, you may eventually realize they are not enough to meet your requirements.

It becomes more complicated when you make transactions in bulk and need to track outstanding payments. That’s where eInvoicing software like TaxPro GSP comes to your aid, creating, issuing, and managing invoices in bulk has become easier than ever.

This guide will dive deeper into how the eInvoicing system can help simplify your business processes.

Why eInvoicing is introduced?

In spite of invoices generated by each system, the computer can’t understand them. Nowadays, there are tons of accounting and billing systems available to generate invoices and all have their own formats to store information. That being said, the GST system can’t read and understand these invoices.

Hence, there was a need to standardize the format and invoice to be shared electronically to ensure data security. It means all invoices are electronically uploaded and authenticated by the GST portal. Then, a unique Invoice Reference Number (IRN) is generated for each invoice by IRP.

The aim behind eInvoicing adoption is to pre-populate returns and reduce reconciliation challenges.

What are the benefits of eInvoicing Software?

eInvoicing system can certainly help in issuing and managing invoices. The right software will ensure that each invoice you create adheres to your business needs. Below are some advantages of using eInvoice software:

1. Prevent Mistakes

There is a risk involved in using Word or Excel to create invoices because it has no proper guidelines. Such mistakes can cost you ample time and money. That’s where the eInvoicing system comes into play because they are designed to prevent these errors. It automatically tracks your information, makes business processes efficient, and reduces the likelihood of mistakes.

2. Organize for Tax Filing

From orders to payments, it is all a significant part of your cash flow. Every time you create an invoice, receive payment from a customer, or have an expense, the software will update financial reports for submitting income taxes. It can be very useful when you are filing taxes and ensures numbers are accurate to avoid costly mistakes.

3. Bulk Invoices

eInvoice software allows taxpayers to send multiple invoices at the same time. It saves you ample time and energy you require for calculations and manual data entry for different invoices.

4. Increased Efficiency

With eInvoice software, you can easily save product information and customer details for future use. You can give more attention to invoice content and in turn, will improve the accuracy and efficiency of invoices generated. Plus, it increases efficiency in tax administration by eliminating fake invoices.

How eInvoicing Can Curb Tax Evasion?

eInvoicing was primarily introduced to curb tax evasion. The chances of editing invoices are reduced because if any transaction is done, invoices are generated. It also ensures authorities have complete information on all transactions in real time.

It largely minimizes fake GST invoices and ensures input tax credit is claimed on GST invoices due to automation and thorough checks.

Conclusion:

eInvoicing system allows bulk invoices to be uploaded and authenticated electronically with a unique invoice reference number (IRN) and QR code. The seller needs to generate QR/IRN code before issuing it to the buyer.

Nowadays, eInvoice Service Provider like TaxPro GSP allows businesses to generate, cancel, print, review, create IRN/QR code, and perform other bulk operations within their existing ERP software. It helps to save plenty of time so you can focus on core business objectives and stay organized.

You no longer need to manage JSON files and visit IRP multiple times, as you can generate and perform all eInvoice operations with your accounting or ERP itself.