The adoption and implementation of e-invoicing can have both short-term challenges and long-term benefits for businesses.
Short-Term Impacts
In the initial stages, businesses may face:
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Increased labor requirements
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Operational disruptions or delays
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Potential penalties due to non-compliance stemming from unfamiliarity with e-invoicing rules
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Additional IT infrastructure costs
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Technical glitches and system errors
Long-Term Benefits
Over time, e-invoicing leads to positive outcomes, including:
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Greater operational efficiency
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Streamlined bookkeeping and tax filing processes
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Fewer tax audits
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Enhanced accuracy and authenticity of financial records
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Cost savings from improved cash flow and faster debt collection
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Reduced printing expenses
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Higher compliance rates
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Improved transparency, supporting better ESG (Environmental, Social, and Governance) ratings
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Stronger market competitiveness
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Better supplier and buyer relationships
Next steps
Businesses will need to prepare for the adoption and implementation of e-invoicing by:
- ensuring their people, processes and technology are to the required standard
- providing adequate training and tools essential for personnel overseeing the adoption and implementation of e-invoicing
- scrutinising existing processes for issuing invoices, credit notes and other transaction documents
- reviewing existing information technology capabilities, and
- determining the availability of data sources to comply with e-invoicing requirements and obligations.
Source Credited: https://www.wolterskluwer.com/en-sg/expert-insights/e-invoicing-in-malaysia
