SMEs embracing e-Invoicing now would provide significant advantages, such as cost savings, better cash flow management, enhanced security, increased efficiency, and reduced errors. It streamlines processes, promotes sustainability by reducing paper usage, and ensures compliance with regulatory standards.
During a media call hosted by LinkFor, CEO Robin Sands highlighted these benefits, emphasizing the transformative impact of e-Invoicing on businesses.
“We have seen significant improvement in on-time payments and have experienced a reduction in late payments, which is vital for business sustainability,” Sands remarked.
The Inland Revenue Board (LHDN) announced a six-month grace period for taxpayers transitioning to the mandatory e-Invoicing system, effective August 1, 2024. This measure aims to facilitate a smoother shift, allowing businesses to issue consolidated e-Invoices for all transactions during this period.
Sands praised the government’s phased and inclusive approach, which gives SMEs ample time to prepare for the full implementation. “SMEs have enough time to onboard and integrate their e-Invoicing system, but it’s critical to take the first steps to avoid any last-minute issues that could hamper operations and to be fully compliant for the mandate,” Sands advised.
The mandate aims to boost national tax revenue but has raised concerns among SMEs regarding costs, training, and implementation. At the MDEC ‘National E-Invoicing Open Day and Accreditation Ceremony,’ Digital Minister Gobind Singh Deo addressed these concerns, noting that the government is exploring ways to reduce the costs of implementing e-Invoicing for SMEs and emphasized that e-Invoicing can have a positive impact on the overall invoicing processes.
Business Benefits of e-Invoicing
Sands pointed out that despite these challenges, SMEs in Malaysia stand to benefit significantly from adopting e-Invoicing and more importantly being part of the Peppol network. Peppol enables its members to send and receive electronic documents efficiently and safely, allowing suppliers to send e-Invoices seamlessly in both B2G and B2B transactions, promoting smooth financial operations and offering substantial long-term benefits.
Opting for an accredited government-backed e-Invoicing solution via the Peppol Network enables SMEs to unlock various advantages, enhancing their competitive edge and supporting sustained market growth. As an authorized Peppol service provider in Malaysia, e-Invoicing offers benefits beyond standard e-Invoicing providers, especially in standardizing processes between businesses and suppliers and ensuring on-time payments.
“Peppol offers a unique standardization that ensures uniformity across businesses, eliminating the complexities and inconsistencies typically associated with different invoicing systems,” Sands explained.
In a globalized business model where SMEs rely on international suppliers, the Peppol network offers immediate access to a vast network of organizations across various countries.
Sands added, “SMEs can interact with a wide range of businesses and public administrations, facilitating seamless and efficient international invoicing processes and communication.”
Global Impact
Global statistics underscore the importance of on-time payments for SMEs. In the UK, an alarming 58% of SMEs are struggling with cash flow due to unpaid invoices. Late payments strain cash flow, affecting business stability and growth. With over 85% of organizations recognizing the urgent need to adopt new technologies to address these shortcomings. In Australia, government agencies are already setting a precedent by paying e-Invoices within just 5 days, dramatically improving cash flow for countless businesses. These improvements are critical for SMEs, which often lack the financial infrastructure and credit lines of large enterprises.
LinkFor has facilitated smoother invoicing and payment processes for over 5,000 businesses globally, including many in Malaysia. Sands concluded, “e-Invoicing is being widely adopted across the globe, helping organizations align effectively with their digital transformation goals. This solution optimizes financial and invoicing processes, enhancing efficiency and accuracy.”
About LinkFor
LinkFor provides e-Invoicing Access Point services under the Peppol Framework and is an approved Peppol Access Point in Malaysia. LinkFor offers comprehensive e-Invoicing solutions for businesses, facilitating seamless invoicing processes and fostering stronger trading partner relations.
For more information on LinkFor e-Invoicing: https://link4.asia/my/
Media Contact LinkFor:
Kasun Illankoon – PR Specialist
[email protected]
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Footnote: In this article, “e-invoicing” is used interchangeably to refer to electronic invoicing.
