What to consider before selecting an E-invoice solution?

All Business to Business (B2B) and Business to Government (B2G) transactions must be invoiced electronically. IRN and QR codes have been approved by the Invoice Registration Portal (IRP). The IRP gives each invoice an individual invoice reference number (IRN) upon successful validation. Each invoice is digitally signed and combined with a QR code using an IRN. Under GST, this procedure is referred to as e-invoicing as a whole.

Therefore, whenever an e-invoice is issued, companies that fall under a specified threshold will be granted a unique number. Businesses can verify this number by comparing it to the invoices listed in sales returns and taxes paid.

E-invoicing is a crucial component of every firm using the GST taxation system. Businesses must comprehend the idea of e-invoicing, and selecting e-invoice software might be challenging. 

Features an e-invoicing software should possess

1. The software should generate the e-invoice instantly.

To receive quick services in a precise manner, we all turn to software. Having a legitimate invoice generation is always required because the idea of an electronic invoice is crucial. To log in, you must upload the e-invoicing information to IRP in the required format (JSON). Download a JSON output file that has been authenticated by IRP using IRN and QR codes next. Before giving the buyer the invoice, you must later print the IRN and QR code.

By delivering information to the IRP in the required format directly, the e-invoicing software reduces complications. After downloading the genuine statement, the invoice is promptly printed with the QR code, IRN, etc.

2. The software should have the facility to upload bulk invoices.

In some business circumstances, you might need to create multiple e-invoices rather than one at a time. For instance, some companies use the "Maker" and "Checker" systems of invoicing, where the "Maker" creates the invoices and the "Checker" checks them later. When sending invoices in bulk to create electronic invoices, the software should automatically locate and print the QR code on the invoices.

3. The software should generate e-way bills along with the e-invoices.

The GSTN and e-way bill systems are connected with the e-invoice system (IRP). Therefore, the IRP portal automatically shares the challan information with the GSTN system for returns and the e-way bill system for use in making e-way bills when you file an invoice. As a result, your e-invoicing software should support this feature. An e-way bill and an e-way bill for invoices that need an e-way bill should both be produced by the software.

4. The software should have the feature of cancelling an e-invoice.

You might occasionally run into issues while setting up the invoices, such as duplicate data entry, errors, the desire to cancel your transaction, etc. It is necessary to cancel the invoice for which IRN has already been generated. Therefore, you need software that enables you to cancel such invoices. Furthermore, send the information automatically to IRP so that IRN can be cancelled.

5. The software should offer various modes of e-invoice.

You need a system in your software that operates effectively while a system's internet services are unavailable. The software must be adaptable to using additional e-invoicing methods, such as the direct entry on the portal and offline utilities. Additionally, it needs to retrieve the IRN, QR Code, etc., from the portal and update it appropriately.

6. The software can easily integrate with the existing systems.

Integrating an e-invoice solution into your current ERP system can be challenging. There should be a chance that your ERP is compatible with the e-invoice system of your choice when purchasing software.

7. The software should have access to the automatic sending and receiving of invoices. 

You must integrate with the system that enables you to handle your e-invoicing sending completely and receiving while searching for the e-invoicing system for your company. Doing this will improve your business's overall scalability, efficiency, and cost savings.

8. The software should operate over an extended, open network.

You are advised to sign up for an e-challan system that meets your current and future demands. Along with this, you should ensure the development business guarantees you will get whatever customisation you need. Additionally, your suppliers may quickly sign up for your network and send you these invoices immediately.

9. The software should have robust analytic capabilities.

Any software solution must include analytics. Your e-invoicing software should offer incorporated analytics combined with graphical dashboards for trend analysis to give you meaningful insights. The data can yield valuable insights, so you should ensure that the software you select for your e-invoice solution uses the data appropriately and adheres strictly to data security standards.

10. The software should be able to track outstanding invoices.

Outstanding invoices impact everything. So if cash flow is disrupted, you won't have the funds to keep your firm running. You would be unable to pay your staff, vendors, or suppliers in this circumstance. You'll incur late fees, and your reputation will suffer. Keeping track of your outstanding invoices can be tedious. Finding software that helps in keeping track of your invoices is essential. 

The characteristics mentioned above are monitored by Busy accounting software, which aids in creating an efficient and seamless e-invoicing procedure. The Busy accounting software was designed to support specific e-invoicing requirements while considering the most recent GST considerations and regulations. Additionally, an effective, paperless billing system lowers the extra expenditures. Businesses can enhance productivity by using Busy’s software to its full potential while automating workflow procedures. Additionally, the following are the main justifications for selecting the best e-invoicing software in India:

• Strengthens connections with suppliers and customers 

• Minimises carbon footprints

• Improves GST compliance

• Reduces payment cycle length