The mandatory adoption of e-invoice is set to commence in August 2024 for enterprises with a turnover over RM100 million, as revealed by the Inland Revenue Board of Malaysia (LHDN). The requirement for national adoption is set to expire in July 2025. With this change, Malaysia’s economy and tax system have advanced significantly toward digitalization, placing efficiency, precision, and compliance at the centre of corporate operations.
This new law presents both benefits and problems for Malaysian accounting companies. Although e-invoice provides a productive, automated method of managing financial transactions, businesses must immediately adjust in order to stay in compliance. This article will discuss the difficulties accounting companies encounter, the strategies they may employ to solve these difficulties, and how WipData Academy’s E-Invoice Compliance Training Program helps keep accountants on the cutting edge.
Challenges Faced by Accounting Firms
Many accounting businesses are facing numerous significant issues as e-invoicing becomes necessary in the near future. These challenges include:
Paper-to-Digital Systems Transition
Accounting companies have been using labor-intensive, error-prone manual, paper-based invoicing methods for many years. Making the switch to electronic invoicing can be daunting, particularly for businesses that process high quantities of transactions.
Observance of the New Rules
To achieve complete compliance with LHDN’s new standards, businesses must acquaint themselves with e-invoicing systems, reporting guidelines, and tax-related rules. Infractions might lead to fines and delays in company operations.
Accuracy and Data Management
Real-time data interchange between companies and tax authorities is a component of e-invoicing. Accounting companies must make sure that all of their data is current, accurate, and full since inaccuracies might cause differences in tax returns.
Client Instruction and Assistance
Since e-invoicing may be new to many small and medium-sized businesses (SMEs), accounting firms must inform and assist their customers as they make the switch. This places additional obligation on businesses that currently manage heavy workloads.
How WipData Academy’s E-Invoice Compliance Training Program Can Help?
For Malaysian accountants facing these obstacles, WipData Academy has created an E-Invoice Compliance Training Program designed to assist them overcome them and guarantee a seamless shift to e-invoicing. What our program has to offer is this:
Recognizing the New Electronic Billing System
Our training course gives participants a thorough understanding of Malaysia’s electronic invoicing system, including the specifications and timeframes established by LHDN. The many forms of e-invoices, the situations in which e-invoicing is necessary, and how to adhere to the new rules will all be covered in the accounting curriculum.
Practical Knowledge of E-Invoicing Systems
The MyInvois portal and other API-based systems are only two examples of the compatible e-invoicing platforms that participants will receive firsthand experience with. Accounting professionals will have an easier time understanding how to use these platforms after seeing our educators teach how to do so.
Automating the Process of Invoicing
By switching to electronic invoicing, many invoicing procedures can be automated, which lowers the possibility of errors and manual input. Our training covers best practices for automation, which helps businesses reduce administrative burden and boost productivity.
Handling International Trade
When it comes to e-invoicing, cross-border transactions pose particular difficulties. We explain how to handle these transactions in our training, making sure that international tax regulations are followed and lowering the possibility of fines.
Readying Customers for Electronic Billing
E-invoicing is only one example of how accounting firms frequently serve as advisors to their clients. Our program gives businesses the resources they need to inform and assist customers, facilitating a seamless switch to the new invoicing method.
Results and Benefits of E-Invoicing Implementation
Accounting companies might anticipate many advantages if they implement electronic invoicing prior to the required dates.
- Enhanced Efficiency: Businesses can save up to 80% on human data entry by automating their invoicing operations, which will speed up transaction times and cut down on errors.
- Enhanced Compliance: Businesses who fully abide with LHDN’s laws are protected from fines and late filing penalties.
- Improved Cash Flow Management: E-invoicing helps businesses and their clients by cutting down on payment delays and increasing cash flow.
- Enhanced Data Accuracy: By eliminating discrepancies and the danger of audits, real-time data interchange increases the accuracy of financial reporting and tax filings.
A Smooth Transition to E-Invoice
At WipData Academy, we recognize that making the switch to electronic invoicing may seem overwhelming at first, but accounting companies in Malaysia may seize this chance by providing the appropriate resources and training. The goal of our E-Invoicing Compliance Training Program is to give accountants the know-how and abilities they need to successfully and efficiently deploy e-invoicing.
Are you ready to get your company ready for compliance with e-invoicing? To find out more about our training program and how we can assist you in staying ahead of regulatory changes, please get in contact with us.
Find out more on E-Invoice here.
Contact our Training Manager, Roy (roy@wipdata.com) to get the latest and updated courses that can upskill your workforce.