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Boost Cash Flow & Efficiency: Top 5 Benefits of eInvoicing for Malaysian Businesses

May 15, 2024

Boost Cash Flow & Efficiency: Top 5 Benefits of eInvoicing for Malaysian Businesses

Ensuring a healthy cash flow is vital for any Malaysian business to be competitive and grow. Delayed payments and slow invoice processing can really impact a company’s financial health. E-invoicing can help support business to overcome these challenges. Electronic invoicing (or e-invoicing) is like sending an invoice directly from your system to your customer’s. No more mailing paper invoices or sending emails with PDF invoices. It’s the direct exchange of data with your customers from your system to theirs. It’s faster, more accurate, and gives you real-time tracking. This ensures 100% accuracy and deliverability. Click to learn more about our e-Invoice solution and how it all works.

The Malaysian government has recognised the potential of e-invoicing to improve business efficiency. Mandating its implementation for all businesses by July 1st, 2025 and earlier for those with revenue of more than RM100 million. There is a need to move to e-Invoicing for Malaysian businesses. Bue it’s important to understand that e-Invoicing, when done properly, can drive real value for your business – much more than compliance.

Top 5 Benefits of E-Invoicing

1. Faster Invoice Processing:

Gone are the days of paper invoices getting lost in the mail or stuck on someone’s desk. PDF invoices are no better, with invoices getting stuck in spam folders or missed. E-invoicing automates the entire invoicing sending process – from creation to delivery. You can be certain that your invoice has been received and is being processed. e-Invoicing is faster, more accurate, and gives you real-time tracking on your invoice.

2. Reduced Errors and Disputes

Data entry errors, particularly with invoice processing, are very common. Consider the manual data entry involved in you creating an invoice and your customer processing it. These errors can lead to rejected, disputed or incorrectly processed invoices. This all has the knock-on effect of delaying payments and impacting your cash flow. E-invoicing eliminates this risk by automating the data entry. This ensures accuracy and minimises the risks of disputes or errors. This leads to fewer delays and a smoother cash flow cycle.

3. Improved Visibility and Tracking

Traditional paper or emailed PDF invoices lack transparency in the payment process. Both you and your customer have limited visibility into the status of your invoices. Has it been received? Is it being processed? When will it be paid? It’s difficult to track payments and address any issues proactively. E-invoicing provides real-time tracking of deliverability and invoice status. Businesses can see exactly where each invoice is in the process, providing peace of mind. You can also follow up on overdue payments, improving cash flow predictability.

4. Early Payment Incentives: 

E-invoicing is used in many countries in the region, like Australia, New Zealand and Singapore among others. There we have seen that e-Invoicing has opened doors to innovative cash flow management strategies. Businesses and governments have offered early payment discounts to their customers for e-Invoices. Offering discounts incentivises your customers to pay early, improving your cash flow.

5. Streamlined Accounts Receivable Management

Managing accounts receivable can be a time-consuming and resource-intensive process for businesses. E-invoicing automates many of the manual tasks, such as date entry and sending invoices. This frees up valuable resources for other tasks. Your team can focus more on more strategic and important tasks that can grow your business. Things like cash flow forecasting and planning can enable you to make more informed financial decisions.

Benefits Beyond Cash Flow

Improved cash flow is a significant advantage for any business, but there’s more. Our e-Invoice solutions offers a range of other benefits for Malaysian businesses. These include:

  • Compliance: You can be confident that you are meeting your regulatory requirements.
  • Improved Data Security: We eliminate the risk of lost or fraudulent invoices.
  • Environmental Friendliness: E-invoicing contributes to a more sustainable business environment.

Interested in learning more about how e-Invoicing can benefit your business? Head to our benefits of e-invoicing [link to benefits of e-invoicing category page] page, where we regularly update new content and insights.

How to Get Started with E-Invoicing?

You have a few choices on getting started with e-Invoicing. You can use the government portal – MyInvois, which requires you to enter in the invoice data manually. Or you can work with an e-Invoicing specialist like us, who will do all the heavy lifting for you. Your final option is to build out an e-Invoicing integration yourself – this can be very costly and time consuming. Our team of e-Invoicing experts would be happy to discuss your options and how we can help. Visit our eInvoice Solution page to learn more..

Frequently Asked Questions

1.  How can I integrate e-invoicing with my existing accounting system?

The integration is the hardest part for most organisations. There is some technical documentation from LHDN here. Some accounting and ERP systems might already be ready for e-Invoicing in Malaysia. For those that aren’t, our team can provide a seamless integration with any platform or existing legacy system you have. Contact us for more information.

2.  Is e-invoicing suitable for small and medium-sized enterprises (SMEs)?

Absolutely! E-invoicing offers significant benefits for SMEs and large organisations as we have outlined.

3.  Are there any security risks associated with e-invoicing?

E-Invoicing systems are built using enterprise-grade level technology. The same technology that has been used in many countries around the world. E-invoicing is very secure and safe for businesses to use.

4.  What are the potential challenges of e-invoicing implementation?

Integration complexities are a big challenge for a lot of organisations. Many organisations also need help to change some of their processes to get the full benefit of e-Invoicing. Choosing a reliable e-invoicing provider, like Valtatech can help mitigate these challenges. We will be with every step of the process.

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