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E-invoicing or e-invoice is the abbreviation used for electronic invoicing where all the public sector and private sector business entities use to receive orders regarding any services that need to be given or product supplies that need to be made to their customers in duly deadline in a Business to Business or B2B way by taking up calls or sending emails. Businesses in Singapore have got a new compulsory format that is been made mandatory for those who use e-invoices which is the structured XML format. Through this article, the readers and the viewers will learn about the advantages, the process it works, and the common e invoicing software used in Singapore for smooth e-invoicing. One such common software used for e-invoicing in Singapore is Esker, a document automation and order management software established in 1985 that provides solutions and helps your business, reduces costs and increases your efficiency.
How does e-invoicing work?
- First, you need to inform your buyers, sellers, and partners and check whether they are accepting this format of communication or not. Verify the contact information of your partners, sellers, vendors, and partners as they will receive a separate e-invoice address.
- The necessary information required in e-invoicing is transaction details, buyer and seller identity, payment methods that are preferred, and taxes and discounts that need to be given to each other during the business.
- Through e-invoicing manual data entry is lessened or eliminated leading you to have 30% extra time than you used to have in your business.
- Send the e-invoices to your consumers or partners, buyers, or sellers through email or through a secure invoicing software tool where the recipient’s e-invoicing addresses inbuilt into the software and the device.
Types of e-invoicing-
- Point-to-point connection between the buyer and seller is seen in the usage of EDI invoicing or Electronic Data Interchange invoicing. Through this invoice, information is sent through an XML data file. All the information transferred flows through a secure and encrypted network.
- The other is a network connecting multiple buyers and sellers through one single platform. Through this network method, e-invoicing is growing at a rate and is reaching that scale and efficiency. The information or data interchanged is done in the same format.
Advantages of e-invoicing-
- Save time- as noted above you save 30% of your daily usage.
- Reduce cost- this invoice is paperless so, you don’t need to pay money for buying postcards, envelopes, post office stamps, writing papers, and for paying postal fees for each invoice. As the invoicing went electronic manpower was reduced which also helped you to save money from paying for their salaries.
- Reduce mistakes- previously invoices were written by hand resulting in typos and grammatical errors. Through this automatic method, all such mistakes are reduced.
To conclude, the above-mentioned article defines the information regarding e-invoicing.
