Over time we have heard different prejudices and assumptions about electronic invoicing, starting with those who repeat that it is something “extremely complicated” or that the SAT will force you to keep all your physical proofs. There are even those who claim that it is 100% necessary to hire an accountant and make some kind of payment to be able to invoice or that it is impossible to get an invoice once your transaction is made.
It is common for there to be a number of doubts and assumptions before starting to fully intern for the fulfilment of tax obligations, such as issuing invoices, managing and submitting electronic accounting to the Tax Administration department; it is also common to think that tax deductions are very difficult to achieve.
In this article professionals present the most common myths and prejudices among taxpayers and clarify them, so that you get out of doubt once and for all.
1. “Billing takes too long”
It is true that, before electronic invoicing arrived, making an invoice was more laborious, however, this process has changed from almost ten years to date. Previously there was no digital infrastructure to create the electronic invoices that operate now, so accounting for a company or business was done manually, and this required that the invoices be delivered in physical.
Xero accounting software help you generate electronic invoices, manage accounts, as well as automate processes to make your accounting much fast and effective than before. You can read more on Xero PSG before applying for subscription.
2. “Only an accountant can make your invoices”
It is common for this phrase to resonate among taxpayers who are just beginning to generate their first bills.
If your business requires issuing many billing folios, you can resort to an accounting system like Xero Accounting Software which offers you a wide range of e-invoicing plans in addition to other features for a monthly payment. Click here to learn why Xero and solve all your accounting doubts within a jiffy.
3. “Invoice cannot be issued when cash payments are made”
Shops and establishments are required to issue invoices if requested by their customers, no matter what means they use to pay for items or services: they are required to issue the corresponding authorization.
4. “You must keep your invoices printed”
In the past, when accounting was presented physically, this was a requirement. However, we currently have electronic invoices and, in the same way, declarations are also filed with the tax authority via the internet.
The best option is to have a file in digital format and it is backed up and organized in the cloud. This will prevent you from getting lost and facilitate your consultation at any time.
5. “Invoices can only be made through computer equipment”
With the advent of online e-invoicing systems, you can now issue them from any mobile device, such as smartphones or tablets. In addition, one of the advantages is to be able to use it at any time, you only have to log in with your username and password, without the need to install anything.
In this case, if your business requires you to issue a large number of invoices, you can resort to an accounting system like Xero, which can save you a lot of time, as it has automation tools that allow you to issue multiple invoices with less effort. Read more on Xero PSG and enjoy up to 80% subsidy.
Now that you know what these myths or false claims are around e-invoicing, it’s important to consider what your rights and obligations are as a contributor.