Prepare early for the GST InvoiceNow

“I received an email from IRAS asking us to prepare early for the GST InvoiceNow. What’s that?” Jason, my client, asked.

Did you receive the same email as Jason asking you to prepare for GST InvoiceNow? Like Jason, you may wonder what InvoiceNow is and how you must prepare.

What is InvoiceNow?

InvoiceNow is an e-invoicing network. Although an e-invoice is a digital document, it differs from a PDF. A PDF document is a digital image of a document that preserves the layout. In contrast, an e-invoice is a structured data file based on an e-invoice standard that the recipient’s accounting system can process.

Jason operates a hardware shop. His small shop contains thousands of items, including nails, bolts, nuts, and PVC pipes of all sizes and lengths. Whenever the supplier delivers the goods and invoices to him, he has to enter them into the accounting software, carefully select the product codes, enter the quantity and unit price, and tag them to the correct GST rate. The process is tedious when there are pages of invoices filled with products.

Imagine that instead of printing or sending Jason a PDF invoice, the supplier sends Jason an e-invoice, which allows him to import those few hundred items into his accounting software in seconds. Would that save Jason time? Is it good to reduce a few hours of work to a few minutes? Do you want to be part of it and start e-invoicing? How?

How to prepare for GST InvoiceNow?

First, check with your software vendor to see if your accounting software is ready for e-invoices. Then, subscribe to an e-invoice provider and start e-invoicing. Subscribe to Linkfor if you are already using QuickBooks Online. Since IRAS plans to extend the mandatory requirement for existing GST-registered businesses, you may begin to switch from QuickBooks Desktop to QuickBooks Online (QBO) to prepare early for GST InvoiceNow.