In the digital age, managing electronic invoices is no longer an option but a mandatory requirement for every business. Without a strict processing procedure, accountants are prone to errors, data loss or tax violations.
This article will reveal 3+ ways to effectively manage electronic invoices, helping businesses optimize accounting processes, minimize risks and ensure legal compliance.
1. What is an e-invoice and why is it important to manage e-invoices?
Understanding the concept and importance of How to manage electronic invoices is the first step to make your business operate more transparently, professionally and economically.
1.1. What is an electronic invoice?
Electronic bill An electronic accounting document is an accounting document expressed in the form of electronic data, created, sent, and stored electronically by businesses or individuals selling goods or providing services. This is a form of invoice recognized by law as equivalent to a traditional paper invoice, but superior in convenience, processing speed, and centralized storage capacity.
According to current regulations, electronic invoices are divided into two types:
- Electronic invoice with tax authority code: The tax authority issues an authentication code before the business sends the invoice to the buyer.
- Electronic invoices without tax authority codes: Applicable to qualified businesses and self-responsible for issuance.
All electronic invoices must comply with data standards according to Circular 78/2021/TT-BTC and managed through accounting software, electronic invoice software or ERP systems.
1.2. The importance of electronic invoice management
Effective management of electronic invoices not only helps businesses comply with legal regulations but also contributes to optimizing accounting and financial processes, improving operational efficiency and minimizing risks.
Here are the reasons why How to manage electronic invoices become a key factor in the accounting and financial activities of the enterprise:
- Ensuring legality and transparencyInvoices are stored and checked clearly to avoid loss or forgery.
- Optimize processing and storage time: Invoices are automatically issued, sent and stored quickly on a digital platform.
- Support for accurate tax declaration and reconciliation: The management software system helps to compare and synthesize data quickly, minimizing errors when preparing tax reports.
- Reduce operating costs: No more printing, shipping or physical storage costs like paper invoices.
- Increase the effectiveness of internal inspection and audit: Data is retrieved instantly, supporting businesses in transparency in auditing and tax inspection.
2. Legal regulations on electronic invoice management
Registration, management, use electronic invoices must comply with the provisions of law on electronic transactions, accounting, taxes and related decrees such as Decree 119/2018/ND-CP and Decree 123/2020/ND-CP.
2.1. Regulations on electronic invoicing
Businesses are obliged to issue electronic invoices in most business activities:
- Subjects required to issue electronic invoices: Including transactions of selling goods, providing services, promotional goods, trial samples, gifts, exchanges, salary payments, internal consumption (except internal circulation), or borrowing/returning/refunding goods.
- Form and format: Electronic invoices must comply with XML data standards as prescribed in Circular 78 and must have a tax authority code or code of the service provider.
- Required content: Includes seller-buyer information, goods/services, payment value, tax rate, electronic signature and invoice date.
- Time of establishment: Immediately upon completion of delivery or provision of services, ensuring that it matches the time when tax liability arises.
- Invoicing principles: Invoices must reflect actual transactions, must not be created falsely or edited arbitrarily, and must be registered to use electronic invoices in accordance with the correct procedures with the tax authority or through an electronic invoice software provider.
2.2. Regulations on preserving and storing electronic invoices
The storage of electronic invoices must meet the following criteria: legality, confidentiality and traceability:
- Storage format: Stored by electronic means, ensuring the original format (XML) or format can fully and accurately retrieve the content.
- Storage period: Minimum 10 years as prescribed by the Accounting Law.
- Integrity & Security: Invoices must not be changed, ensuring data system security and accessibility when necessary.
- Valid destruction: Expired invoices can be destroyed according to regulations, but will not affect the data that has not expired and the operating system.
- RequiredInvoices must be ready to print, present, and retrieve quickly to serve inspections, checks, or tax settlements.
2.3. Input invoice management process according to law
Management process input invoices Standard and common in enterprises include the following steps:
- Step 1. Receive invoice from supplier: Receive paper or electronic invoice, check initial information (tax code, company name, date of issue, value).
- Step 2. Check validity – legality – reasonableness: Check with contract, purchase order, delivery note, acceptance report. Verify invoice has sufficient content and supplier is active, tax code is not suspended.
- Step 3. Record in accounting system: Enter or synchronize invoices into accounting/enterprise software (ERP). Categorize by appropriate expense group or accounting account.
- Step 4. Archive the invoice: Electronic invoices are stored on the electronic invoice management system, complying with the 10-year storage period.
- Step 5. Declare input VAT: Enter monthly/quarterly VAT declaration on time, monitor to avoid duplicate declaration or omission.
- Step 6. Compare – Review – Report: Periodically compare with debt reports and supplier system. Summarize input invoice reports to serve tax inspection and settlement.
3. Popular ways to manage electronic invoices today
Currently, many businesses are still applying the How to manage electronic invoices manually due to low cost or lack of conditions to deploy specialized software. However, each method has its own advantages and disadvantages that need to be carefully considered to suit the scale and needs of each business.
3.1. Manual method
3.1.1 Create a dedicated email to manage electronic invoices
- Advantage: Easily track, count and classify invoices, avoiding confusion with other work emails. New accountants can also easily look up data.
- Disadvantages: Time consuming manual data entry into accounting software. Risk of data loss if email is locked or security breached. Using personal email is unprofessional and difficult to control when personnel changes.
3.1.2 Store electronic invoices in images (manage folders on computer or Drive)
- Advantage: Suitable for small businesses with few transactions. Can be flexibly stored on computers or cloud platforms such as Google Drive.
- Disadvantages: Difficult to work with large numbers of invoices. Cannot quickly filter by supplier. Easy to make mistakes when checking with the naked eye and potential risk of data loss if not backed up. Manual data entry is still time-consuming and error-prone.
3.1.3 Make a list on Excel spreadsheet
- Advantage: Accountants are familiar with Excel so it is easy to use. Invoices can be classified according to many criteria for statistics and lookup.
- Disadvantages: Easy to enter missing or incorrect information when doing manual operations. Data linking between email and Excel is inaccurate. There is no invoice validity checking feature, data is not centralized and easily scattered across many different sources.
3.1.4 Print electronic invoices on paper for storage
- Advantage: Avoid relying on email, no need to set up complex management systems.
- Disadvantages: Incur printing and storage costs. Inconvenient in looking up and checking invoices and no tool to verify validity. Accounting still has to be done manually.
3.2. Using electronic invoice management software
In the context of increasingly strong digital transformation, the application of electronic invoice management software is considered one of the How to manage electronic invoices The most modern and effective solution for businesses. This solution not only overcomes the limitations of manual methods but also improves productivity and accuracy in accounting operations.
General advantages of electronic invoice management software:
- Integrates diverse management features: Supports tracking, classifying, searching and comparing invoices quickly. Some software also integrates with ERP systems or accounting software to help synchronize data effectively.
- Minimize errors: The software automatically checks mandatory indicators on invoices, warns of incorrect information, and limits the risk of incorrect declaration or being denied a code by the tax authority.
- Save time and money: The process of issuing and storing electronic invoices is completely digitized, significantly saving time in processing, printing, sending and storing invoices in the traditional way.
- Centralized management, easy access: All invoices are stored on a centralized system, allowing users to easily search by code, issue time or customer name.
- High Security: Multi-layered data encryption, combined with access authorization mechanisms and periodic backups, helps ensure information security and invoice integrity.
General disadvantages of the software:
- Software costs: Unlike the management method using Excel files or manual documents, businesses need to make an initial investment in software copyright or annual recurring usage costs.
- Depends on the provider: Management efficiency depends on the quality of software and technical support services. Therefore, businesses need to consider choosing a reputable unit with experience in the field of finance and accounting, ensuring that the software is always updated according to legal regulations.
In short, using the software is How to manage electronic invoices Smart, in line with modern trends. Choosing the right tool not only helps reduce the workload for the accounting department but also increases accuracy, saves operating costs and improves the efficiency of comprehensive invoice management.
3.3 Bizzi – Pioneering software solution in electronic invoice management
In the context of businesses increasingly focusing on How to manage electronic invoices effectively, Bizzi offers a comprehensive software ecosystem that helps automate and streamline financial and accounting processes. With AI and RPA technology, Bizzi not only supports input and output invoice processing but also deeply integrates with the enterprise's existing ERP and accounting systems.
Bizzi – AI Assistant for Finance and Accounting:
As a platform integrating more than 30 smart features, Bizzi helps businesses control costs, collect debts and make B2B payments easily, thereby optimizing cash flow and minimizing manual errors.
Automatic processing and reconciliation of input invoices (IPA + 3-way matching):
Bizzi uses Bizzi Bot – RPA and AI technology to automatically download, check, classify and reconcile input invoices in real time. The system allows:
- Compare invoices with purchase orders (POs) and warehouse receipts (GRs) to detect discrepancies as soon as they arise.
- Check tax code and supplier status on tax authority system.
- Warn of risky invoices if invoices from suspicious suppliers are detected.
- Store electronic invoices properly for 10 years.
Release and electronic invoice management (B-invoice):
Bizzi helps businesses create and issue standard electronic invoices:
- Create invoices in XML/PDF format according to tax authority regulations.
- Customize invoice template according to brand identity (logo, colors).
- Invoice batch by order or customer.
- Connect directly with the General Department of Taxation to authenticate invoices via authentication code.
- Manage invoice status: issued, sent, paid, canceled or adjusted.
- Search, Download and print invoice easy according to many criteria.
Powerful integration and feature expansion:
Bizzi easily integrates API with popular accounting and ERP software. Additionally, the extended ecosystem includes:
- Bizzi Expense: Manage business expenses.
- Bizzi Travel: Transparent and standardized expense management.
- ARM: Comprehensive debt management solution, improving collection efficiency.
Thanks to its powerful automation capabilities and strict compliance with legal regulations, Bizzi is becoming the top choice for modern businesses that want to manage electronic invoices intelligently and effectively.
4. Choose the optimal way to manage electronic invoices
Choosing a solution electronic invoice management appropriate not only helps businesses comply with the law but also optimizes accounting processes and improves operational efficiency. Before making a decision, businesses need to clearly assess their internal needs and mandatory criteria for the software.
4.1. Assessing business needs
First, businesses need to self-assess the current situation to choose the right tool, avoiding wasting costs and resources:
- Enterprise scale: Small businesses often need simple, low-cost solutions; while large businesses may need powerful software with high customization and integration capabilities.
- Volume of invoice transactions generated: If your business issues or receives many invoices every day, you should choose software that can process quickly and synchronize automatically.
- The complexity of the current accounting process: The more complex the process, the more it requires a solution that can integrate with ERP, accounting, sales or warehouse systems.
- Investment budget: It is necessary to determine a reasonable cost for the software, balancing between features, scalability and support level.
- Digital transformation readiness of the team: Assess employee technology skills to select software that is easy to use or requires extensive training.
4.2. Software selection criteria
Below are important criteria to help businesses make the optimal choice:
- Compliance with the law: The software must be approved by the Ministry of Finance and the General Department of Taxation, ensuring valid invoices, correct format and accurate data transmission.
- Features and integrations:
- Management Support input and output invoices, suitable for diverse business activities.
- Automatic check validity of the invoice (tax code, electronic signature, invoice status…).
- Integrates seamlessly with existing accounting software or ERP systems.
- Provide additional support features debt management, expenses, financial reporting, helps optimize efficiency.
- Data security and safety: Invoice data needs to be encrypted, stored on a highly secure platform, with clear access rights to prevent leakage or forgery.
- Storage capacity: The software must meet the requirements Store invoices for at least 10 years and support easy searching and retrieval when needing to compare or check taxes.
- Easy to use: The interface should be intuitive, support Vietnamese, and have full user manuals to reduce familiarization time and staff training.
- Customer Support: Supplier should have specialized technical team, quick support when problems arise or upgrades are needed.
- Supplier reputation: Priority is given to units that have experience in deploying for many businesses, and are highly appreciated for their stability, security and scalability.
5. Conclusion
Understanding how to manage e-invoices is a key factor in helping businesses optimize financial processes, save costs, and comply with legal regulations. While manual methods still have many limitations, applying professional e-invoice management software such as Bizzi With a comprehensive cost management ecosystem, automating the process of processing input invoices and output electronic invoices, it will bring outstanding efficiency, helping businesses achieve transparency, accuracy and high performance in business operations.
To improve the efficiency of invoice management as well as automate the financial and accounting processes of the business. Register to experience Bizzi's comprehensive solution suite today!
- Link to register for a trial of Bizzi products: https://bizzi.vn/dang-ky-dung-thu/
- Schedule a demo: https://bizzi.vn/dat-lich-demo/
