Electronic invoices and real-time reporting have become the golden words of the business world. They are often confused to be the same term due to their similar functionalities. However, they are mostly different while having a common point of adherence. In this article, we explore the concepts of e-invoicing, real-time reporting and the relationship between them.

If you are on the outlook for some of the most potent E-Invoicing Software out there, QueueBuster is the one for you. 

What is Electronic Invoicing?

Electronic invoicing is the process of electronic billing between a supplier and a buyer, containing the same information as a paper invoice. An e-invoice consists of details like the purchase amount, payment terms, line items, and credit notes issued in the name of the buyer in an electronic format.

Many people replicate e-invoices with digital invoices as they are pretty similar with a slight difference. E-invoices are digital files with structured data designed in such a manner that they can be automatically processed or exchanged by any accounting or ERP system. Top E-invoicing Software generally have the following two formats, depending on how they function:

• Electronic Data Interchange (EDI)–  It is a machine-readable system that cannot be interpreted by humans. 
• Hybrid Invoice– A hybrid invoice format consisting of a structured invoice that is readable by both humans and computers. 

Unstructured digital invoices, like standard PDFs or any word document, can only be read by humans. This further adds to the workload of labourers and can increase the chance of inaccuracy. With Error Free Billing Software, it is easy to minimise these errors. However, while it is possible to break down complex data through extraction technologies that help in retrieving individual field information to be read by machines, it is not as effective as genuine e-invoices. Given that they are created in the machine-readable format, there is no issue of extraction and conversion when it comes to e-invoices. This helps in saving time as well as resources. 

Is E-invoicing a New Concept?

E-invoices are not a new concept and have been popular in the industry for quite a few years now. Companies worldwide have been implementing E-Invoicing Software, which has allowed them to automate the processes of the finance and accounting departments, saving time and energy.   

There is no prerequisite requirement for e-invoicing at the moment. All businesses are required to transmit certain electronic information to other businesses to operate and achieve their aim. However, the technical information required by the top E-Invoicing Software can vary from business to business. 

What is Real-Time Reporting?

Real-time reporting, also known as live reporting, is a process that is unlike e-invoicing. In real-time reporting, a vendor electronically transmits value-added tax (VAT) directly to the tax authorities in standard time. There are no global standards for real-time reporting but it follows the standardised format specified by the Standard Audit File for Tax international standard. 

Real-time reporting is considered to be valuable for businesses as it allows tax authorities to estimate VAT income and detect fraud, financial discrepancies, performance, and trends in the economy. Even though real-time reporting can be linked with e-invoicing directives, it can exist independently. The best E-Invoicing Software allows businesses to conduct real-time reporting following industry standards.

Although many businesses opt to implement the e-invoicing system discretionary to streamline their business processes, real-time reporting is adopted only to comply with government mandates.

Relationship Between E-Invoicing and Real-Time Reporting

An invoice is considered to be the prime source of information for various business activities and VAT. On the other hand, real-time reporting is the unfiltered extension of e-invoicing. Whenever e-invoicing is used, it is understood that real-time reporting has been implemented prior. This sums up the relationship between real-time reporting. Adapting the best GST E-Invoicing Software allows businesses to comply with the directives of e-invoices.

Many countries around the world have combined e-invoicing and real-time VAT reporting necessities under one discretion. Although the technical implementations may differ from country to country, the principle remains the same: The invoices must be submitted to the tax department first and can then be forwarded to the buyer or the purchaser only after the approval of the invoice by the tax authority. 

Combining e-invoicing with real-time reporting eventually streamlines the process of exchange of invoice data between business partners and allows tax authorities to reclaim relevant VAT information in real-time. E-invoicing software reduces the human workload by half and also improves the functionality of the business. QueueBuster is one of the prime invoicing software that allows their user to get started with e-invoicing and real-time reporting with minimal effort. 

Why Mandate E-Invoicing and Real-time Reporting?

Real-time reporting and e-invoicing requirements were primarily introduced to allow assistance to the tax authorities in plugging the VAT gap, which is the difference between the expected VAT revenue and the actual VAT collected. 

Tax authorities can find it quite unmanageable to detect and eliminate fraudulent activity or take an oversight when chasing paper trails. Electronic invoicing mandates come as a rescue and give tax authorities enhanced visibility for taxpayers’ transactions. Real-time or nearly real-time reporting mandates allow officials to apply enhanced technology like artificial intelligence to inflow automated check-ins and detect any anomalies, tax errors and evasion if any. Taxpayers cannot hide or tamper with their returns on tax when officials have a record of their invoices. This is the reason why businesses are always on the lookout for the next best GST E-Invoicing Software.

About QueueBuster

QB is the best E-Invoicing Software that allows businesses to manage their inventory, billing, online dukaan, customer relationship, and digital ledger or Khata. It offers solutions to businesses in four different categories:  grocery, spa & salon, restaurants and general retail. You can easily set up your online store by signing up on the platform. Online stores enable businesses to maximise their reach and sell across multiple towns and states. The platform also offers catalogue discovery by effortless scanning of the e-Store QR. QB allows its customers to reduce physical contact through in-store ordering, which improves the functionality of the business. It also offers customisable delivery options with different methods such as cash-on-delivery, pick-up, and home delivery, among others, as per the requirement of your business. The platform features a facilitated POS system for speed and accuracy. It also features multiple payment options, such as credit cards, debit cards, net banking, UPI,  or wallets.

A change for the better is always beneficial to adapt. By adopting e-invoicing, you not only cut down the cost of resources that could be used on other essential aspects of your business but also take a step towards protecting the environment. Introducing a change in the invoicing system will not hamper the way you carry out your business, but it can be an excellent source for business enhancement as it is cost-efficient, sustainable, and helps you conduct business worry-free. QBuster offers an integrated solution for all your invoicing needs. Book a free demo now.