Everything you should know about creating an electronic invoice

Everything you should know about creating an electronic invoice

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Creating electronic invoices has become essential in the business operations of companies and institutions in the modern era, and thanks to many accounting programs that provide the service of creating electronic invoices in an easy and fast way, creating an electronic invoice has become very easy. This article aims to explore the process of creating electronic invoices and their importance in the digital business world.

The creation of an electronic invoice depends on the use of technology to create invoices when any sale of a commodity or service is made and then to direct these invoices to customers in a smooth and fully secure manner. Electronic invoices are a digital substitute for traditional invoices and provide easy construction and distribution, thus reducing costs and time spent in the financial management operations of the enterprise.

The importance of creating an electronic invoice

In all sales of goods or services, the seller establishes an invoice and sends it to the buyer to obtain its money. The invoice is evidence of the sale of goods or the provision of services between the seller and the buyer. The traditional invoicing process is slow and is accompanied by the risk of human error; it requires the creation and introduction of a human handicraft, which is one of the greatest risks of invoice errors.

Electronic invoicing software provides an ideal solution to all traditional invoicing problems, including time and resource consumption, lack of accuracy, efficiency, etc., and creates an accurate electronic invoice quickly and easily at lower costs than traditional invoices. It also allows both the seller and the buyer to track payments and manage their finances.

The importance of electronic invoices is not limited to what was mentioned earlier but has many other advantages, some of which include:

Reduce invoicing costs.

Electronic invoices save time and resources used in creating traditional invoices, such as ink and paper, the effort of employees in creating invoices and entering data manually, and the costs of sending invoices in the mail, as all of the above is eliminated when creating electronic invoices.

Increasing the speed of financial transactions

When setting up the electronic invoice, it is sent quickly through electronic invoicing software to the buyer to request payment, and electronic invoices do not rely on employees to create and enter their data, thus preventing any delay that could delay the completion of financial transactions.

Improving cash auditing

Given the speed with which the invoices are sent to the buyer, this allows for the prompt payment of these invoices by the buyer as well, and if paid in a timely manner, this will improve the seller’s cash flow, thus allowing them to estimate their annual budgets more accurately.

Increased accuracy

As there is no need for staff to manually input invoice data, electronic invoices prevent possible human errors in the invoicing process, such as the input of false data, the input of duplicate data, the repeated entry of the invoice itself, etc.

Consumer protection

Electronic invoices seek to protect consumers by providing a standardized mechanism for documenting and checking invoices.

Improving the client experience

Since electronic invoices are an automated service, the client no longer needs to submit the invoice data manually, so as to reduce errors; the number of rejections of invoices and disputes is automatically reduced. Electronic invoices also allow customers to monitor the status of their invoices in real time in order to obtain a better experience and ensure their satisfaction.

How to create an electronic invoice

With the digital transformation that has taken place in enterprises and companies at present, the creation of electronic invoices is easy and does not require much effort or time, and it is practically possible to shorten the entire process in two steps, as follows:

Electronic Tax Invoice
Electronic  Invoice

1. Selection of appropriate electronic invoicing software

In the first step, as a tax payer, you must select software that supports the electronic invoice in order to create an electronic invoice, and you can select any electronic invoicing program as long as it conforms to the electronic invoicing requirements set by the Zakat, Tax, and Customs Authority. Many of these programs are available, but there are some important criteria that you must take into account when selecting the program. These include:

  • Speed in creating electronic invoices

Speed in creating invoices is one of the most important criteria that you should look for when choosing an electronic invoicing program, as it is important that your transactions are completed quickly and smoothly so that you save time and effort spent in creating traditional invoices.

  • Accuracy and efficiency

While speed is one of the most important criteria, you must also ensure the efficiency of the electronic invoicing software you choose. Electronic invoices are important legal financial documents, so you must choose a program that generates correct and valid invoices accurately and efficiently.

  • Integrates with your organization’s systems

If you’re already using business systems in your firm, you need to look for a suitable electronic invoicing program that is integrated with these systems.

2: Creation of an electronic invoice

The second step is to create an electronic invoice, and thanks to innovative and effective electronic invoicing programs, it may take a few clicks to make the invoice ready. Some programs also allow you to add your signature or seal to the invoice. You need to make sure that the invoice contains the elements specified by the Zakat, Tax, and Income Authority. These are as follows:

  • Tax invoice address.
  • The serial number of the tax invoice with the date and time of issuance of the invoice.
  • Invoice Quick Response Code (QR).
  • Information of the seller or entity selling the good or service, such as name, address, VAT registration number of the seller, commercial registration number, or any additional identifier of the seller.
  • Information of the buyer or establishment purchasing the good or service, such as name, address, VAT registration number of the buyer, and commercial registration number.
  • Information on goods sold or services provided, such as name, unit price, subtotal excluding tax, and total inclusive of VAT,.
  • Total (excluding VAT).
  • Value Added Tax (VAT).
  • Total (with VAT).

Advantages of Qoyod: The best for creating an electronic invoice

The electronic invoicing software provides you with very important financial transactional services and therefore plays a crucial role in the management of operations in your organization. The Qoyod accounting program highlights this area. It is an effective means of improving the efficiency of your account management in a complete and smooth manner. The Qoyod program also has many advantages that make it the best for creating electronic invoices, including:

1. Easy to use

Qoyod is easy to use, carefully designed for entrepreneurs so that they can manage their accounts themselves, and it does not require any download process to use it, as you can access it through a web browser on your laptop, from your smartphone, or through the Qoyod application for Android or iPhone.

2: Provides the service of creating an electronic invoice.

The Qoyod program provides you with the service of creating electronic invoices according to the requirements set by the Zakat, Tax, and Customs Authority in the Kingdom of Saudi Arabia. It allows you to add a signature or seal to the invoice and to print the invoices that you are creating. Qoyod allows you to change the overall coordination of the invoice, such as the addition of photographs, such as the image of the seal in the note box, or the terms and conditions of the invoice.

3: Provides extensive accounting services

The role of Quyod is not only to create electronic invoices but also to provide many distinct accounting services to entrepreneurs. As an entrepreneur, you can have the following services with Koyod:

  • Easy and fast for your clients.
  • Customer and supplier management.
  • Issuance of purchase orders to suppliers.
  • The management of inventory is quite easy.
  • Professional quotations.
  • Connect your current systems to the system through the API service.
  • Managing the powers granted to users through a distinct mechanism.
  • Employees’ salaries, as well as advances, bonuses, and deductions.

4- Secure System

Qoyod provides you with a completely secure system for managing all your operations, from sending quotes to managing inventory to creating invoices and reporting. The Qoyod system, based on secure servers, is keen to keep your information safe, where encrypted backups of your information are taken daily and kept for a month, and it also takes a copy weekly that it keeps for a year.

Conclusion

Electronic invoicing software enables you to create an accurate electronic invoice quickly and seamlessly, and Qoyod helps you start the digital transformation journey of your organization by creating electronic invoices that are compatible with the requirements of the Zakat, Tax, and Customs Authority.

You can enjoy the benefits of the Qoyod accounting system after activating it with just one click of a button, and you can try it for free for 14 days without entering your credit card information, activate the Qoyod program, and join thousands of establishments that trust Qoyod and follow up on your accounting operations from anywhere and at any time easily and in complete safety.

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