Thought Leadership

Real-Life Benefits of E-Invoicing for Malaysian Businesses: A Look Ahead

June 26, 2024

<strong>Real-Life Benefits of E-Invoicing for Malaysian Businesses: A Look Ahead</strong>

The Malaysian government’s push for digitalisation is gaining momentum. They are mandating e-invoicing which will change the way businesses transaction. While the mandates have not been implemented yet, there is a lot for businesses to do. Forward-thinking companies can take proactive steps to prepare for e-Invoicing. This better positions organisations to reap the benefits that e-Invoicing will bring.

In this post we take you through the benefits of e-invoicing. We share insights, data and real-life global examples to prove these benefits. We’ll also cover how your Malaysian business can prepare itself.

Efficiency and Streamlined Operations

E-invoicing is the digital exchange of transactional information. Rather than sending paper or PDF documents, they are sent system to system. This will be a big change for how Malaysian businesses do business. The main benefits come from automating manual processes and eliminating multi-channel workflows. Let’s dive in a little closer:

Reduced Costs.

e-Invoicing will help reduce your administration costs. The Australian Tax Authority has shared research on the cost savings. They show that paper and PDF invoices generally cost between $27 and $30 AUD to process. e-Invoicing can reduce this to less than $10 AUD an invoice. This represents savings of up to 66%. The impact of these savings on your profitability can be huge. Let’s say your company processes 1,000 invoices per month. For ease of calculations let’s say at an average cost of MYR 10 per invoice. This means you are spending 10,000 MYR to process invoices. With e-invoicing, you could save up to 6,600 MYR monthly. This translates to significant cost savings yearly boosting your profits.

Enhanced Efficiency.

Our e-invoicing experts have done a lot of research into automation in the source to pay process. They’ve found that over 70% of activities in invoice processing can be automated. This translates to both cost savings and time savings for your teams. Enabling them to focus on more value adding activities across the business.

Improved Accuracy. 

E-invoicing can integrate with your existing systems. This is important as there are lots of human errors during data entry. A study showed that 12.5% of invoices need re-working when handled manually. This is a huge burden and double of work. e-Invoicing reduces the risk of these manual errors dramatically. This translates to fewer disputes, faster approvals, and smoother cash flow.

Faster Payments. 

E-invoicing eliminates the delays associated with traditional paper and PDF invoices. Faster invoice delivery can lead to quicker approvals and payments of invoices. No more lost invoices or invoices sitting in someone’s email account. System to system means that invoice processing starts straight away.

A Glimpse into the Future: An Australian Case Study

The Australian Case Study: A Glimpse into the Future

While Malaysian case studies aren’t available yet, let’s consider an example from Australia. HammondCare, a national health and aged care provider adopted eInvoicing with their suppliers. They had been looking to drive further automation in their invoice processing system. Part of their cloud-based source to pay platform implementation with Coupa. Valtatech partnered with HammondCare to help drive their source to pay transformation. They implemented eInvoicing to drive greater invoice automation in Coupa.

Over the course of 2 months, their Coupa platform was configured to receive eInvoices. Pilot suppliers were onboarded, activated and they were receiving their first eInvoices. The results have been impressive and matched those expected:

  • 21% decrease in cost to process each invoice
  • 81% of eInvoices are processed and approved automatically
  • They experienced a 73% reduction in manual data entry time, freeing up resources.

You can read more about our work with HammondCare here.

This story highlights the transformative power of e-invoicing for businesses in the region.

Preparing for the E-Invoicing Wave in Malaysia

The Malaysian Inland Revenue Board (IRB) have announced their implementation timelines. Here’s how you can get your business and operations ready:

Stay Informed: Research e-invoicing regulations and best practices. The IRB website offers valuable resources to help businesses navigate the upcoming transition. You can also review our many articles on e-Invoicing.

Map Out Your Existing Processes: E-invoicing requires a change in processes. It’s important to understand how your operations currently work before making this change. Take the time now to map out your processes. This should include identifying how you manage exceptions and time-consuming or challenging invoices.

Review Solutions Providers: Your e-invoicing solution should integrate with your existing accounting software. You will also want to consider factors like scalability, security, and user-friendliness. Finally, choose a provider who can help navigate the transition with confidence.

Educate Stakeholders: Inform your team about the upcoming changes and its benefits. You could run training sessions with your team so they have the knowledge to succeed. This helps to ensure a smooth transition and maximise the technology’s potential.

Looking at the Future of B2B Transactions

E-invoicing is a significant step towards a more efficient, digitised future. The benefits are clear: reduced costs, improved efficiency and faster payments. Understanding these benefits and being proactive with preparation are key to staying ahead. In doing so your organisation will be well-positioned when the mandates are implemented.

The future of e-invoicing holds even more exciting possibilities. Blockchain integration and real-time data exchange are a few of the emerging trends. It’s important that you stay across these changes in the future. At Valtatech we are home to some of the leading experts in e-invoicing in the region. Partnering with us means that you will be at the cutting edge of finance optimisation.

Getting Started

Don’t wait until the e-invoicing mandate hits. Take charge of your B2B operations and prepare for a streamlined future. Our team of e-invoicing specialists can help you get you started. We will assess your readiness and identify the solution for your business needs. Contact us today If and we can help you navigate the e-invoicing landscape. Our team of Malaysian e-Invoicing experts are ready to help.

Banner Ornamnet Desktop.svg

Book In a Consultation with Our Experts

Speak To An Expert