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Top 5 E-Invoice Cloud Accounting Software in Malaysia

E-invoicing is the digital equivalent of the traditional invoice. It speeds up transactions between buyers and suppliers. E-invoicing will be mandatory in the near future by the Inland Revenue Board of Malaysia (IRBM). This is the right time for businesses to opt for this new method. E-invoicing improves tax compliance, and management of cash flows, reduces paperwork, and reduces errors.

 

Cloud accounting solutions such as Xero that simplify e-invoicing. It also seamlessly integrates with numerous applications. As a small business or large company, integrating cloud accounting software in Malaysia to manage e-invoicing can automate your financial processes.

 

Choose the most suitable cloud-based accounting software today and expand your business now!

What is business e-invoice Malaysia?

 

An e-invoice refers to an electronic version of a transaction between a supplier and a buyer. It is a replacement for paper invoices. It is regulated by the Inland Revenue Board of Malaysia (IRBM). Standard e-invoices possess important information. They carry buyer and supplier contact information, item description, price, tax, and payment terms.

 

E-invoices make businesses more efficient. They eliminate errors and enhance security. Real-time authentication is possible by using the system. It also generates a Unique Identification Number (UIN) and QR code on every invoice.

 

The IRBM plan of e-invoice implementation starts on 1 August 2024. This phase targets businesses with turnovers above RM 100 million. The LHDN e-invoice requirement will be rolled out to all businesses by 1 January 2026 in phases. This will improve tax reporting and support the digital economy in Malaysia.

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How to send e-invoices in Malaysia?

 

In Malaysia, businesses can use two main mediums to issue e-invoices, which are the MyInvois portal and API integration. These two facilities are provided by the IRBM for multiple business functionalities.

 

Three Main Methods:

 

1.      MyInvois Portal

 

This is ideal for small businesses or those with limited resources. One can manually enter data and submit invoices individually or in bulk through a spreadsheet. This portal is intended for all taxpayers, especially those who do not have a business ERP system.

 

 

2.      API Integration

 

This method is more suitable for big businesses that have to produce e-invoices in large quantities. It involves setting up systems or using third-party software for integration with the MyInvois system.

 

For API integration, businesses are required to provide details of their software vendor, i.e., TIN, BRN, and name, in order to get registered as an intermediary on the MyInvois portal.

 

If you don’t know how to integrate API, Caltrix Asia can help you with this to settle your e-invoice efficiently. A free 30-minute clarification call is open to all, book it now!

 

e-Invoice Submission Process

 

  • – E-invoice Issuance: Suppliers create and send e-invoices to the IRBM using the MyInvois portal or their integrated business systems.
  • – E-invoice Validation: The IRBM validates the e-invoice in real time and assigns a Unique Identifier Number (UIN).
  • – Notification: Both the supplier and buyer receive notifications about the validated e-invoice through the MyInvois portal or API.
  • – Sharing: Suppliers share the validated e-invoice, which includes a QR code, with the buyer.
  • – Rejection/Cancellation: Buyers can request an e-invoice rejection, and suppliers can cancel an e-invoice within 72 hours. They must provide a justification for these actions.
  • – Human Readable Format: Suppliers may also share a human-readable version of the e-invoice, such as a PDF or JPG.

 

This straightforward process simplifies e-invoice submission. It helps businesses comply with Malaysian regulations while enhancing their financial management.

 

3.      E-Invoice Cloud Accounting Software

 

This method is most suitable for small or midsize enterprises (SMEs) that have existing cloud accounting software or basic accounting desktop software. You need to ensure your current cloud accounting software is in e-invoice compliance with LHDN regulations and guidelines in Malaysia.

 

To save you time to know more, here are the top 5 E-Invoice Cloud Accounting Software available in Malaysia.

Top 5 E-Invoice Cloud Accounting Software in Malaysia

1. Xero

online accounting software

Xero is an affordable accounting software. It is designed for small and medium-sized businesses. The e-invoice solution features an intuitive interface. This helps Malaysian businesses to easily manage their accounts. It also streamlines operations and supports business growth.

Packages /
Price Range		 Starter, Standard, Premium
RM130 – RM330 monthly
Start using Xero before 31 December 2025, everyone can get a 50% discount for 36 months.
Free Trial30 days free trial
Key Feature
  • Online Invoicing: Invoicing is very easy with Xero. It has customizable templates and automated reminders. Invoices can be sent from any device, and it makes payments quicker.
  • Bank Connections: There are more than 21,000 financial institutions worldwide that are connected to Xero. Automatic bank feeds and reconciliation are available. This does away with data entry errors and manual data entry.
  • Expense Management: Users can easily manage and submit expense claims. It aids in tracking spending patterns and controlling
  • Multi-Currency Accounting: Xero accommodates businesses with international operations. It supports transactions in various currencies.
  • Reporting and Analytics: Xero offers real-time financial reporting. Users can generate a multitude of reports to monitor financial health and make informed decisions.
Security Xero is serious about data security. It employs strong defenses like encryption and secure data centers. Regular updates protect user information. The app also features two-factor authentication for an added layer of security over confidential data.
App Integration Xero has a massive app ecosystem. Businesses can integrate different applications based on their specific needs. These comprise e-commerce platforms and CRM systems.
Support Xero Central provides help articles, online courses, and community forums. These support tools are advantageous to small businesses and accountants. They allow users to learn and apply Xero's features correctly to their accounting.

2. Bukku

Bukku-Top-5-Cloud-Accounting-Software-in-Malaysia

Bukku is an accounting and invoicing cloud software for SMEs in Malaysia. It has a simple interface that assists businesses in managing their finances efficiently. Bukku accounting system automates e-invoicing processes, enhances cash flow, and makes administrative work easier. This makes it a great option for business owners who want to improve their accounting.

Packages /
Price Range		 Launch: RM0
Growth: RM59 / month
Premium: RM99 / month
Free Trial30 days free trial
Key Feature
  • Billing: Bukku enables users to make and send invoices in seconds via email or WhatsApp. The payment gateway built into it encourages timely payments, and billing is forever free.
  • Automation: Bukku does away with manual entry of data. Users can upload receipts via WhatsApp, and the consolidated e-invoice software automatically does the data processing, including bank reconciliation and depreciation of assets.
  • Analytics: Bukku has a dashboard to track sales, spending, and cash flow in real time. Customers can see over 50 financial reports to monitor how well the business is performing.
  • Inventory Management: The software enables companies to track prices and quantities in real time. Customers can choose between perpetual and periodic inventory systems based on their needs.
  • Cash Flow Management: The program is self-sustaining in regard to monthly statements and reminders, which enhances cash flow. There can also be mandates for automatic payment.
Security Bukku emphasizes user information security. It implements strong controls like 256-bit SSL encryption and Amazon AWS and Microsoft Azure secure servers. The data gets automatically backed up in real time with multiple copies retained for safety.
App Integration Bukku is very easy to integrate with most applications. It can sync web orders from top e-commerce platforms like Shopee and Lazada. Bukku also offers an open API for companies to create their own custom integrations.
Support Bukku has strong customer support through live chat. Users have access to assistance at all times. The platform also includes tutorials and community forums as resources to help users get the most out of its features.

3. Autocount

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AutoCount is an all-inclusive accounting and business management software for SMEs in Malaysia. It offers various products, including accounting, point of sale (POS), payroll, and cloud accounting. With over 28 years of experience, AutoCount is renowned for its quality and reliability.

Packages /
Price Range		 Lite, Basic, Plus, Pro, Accountant
RM10 - RM180 / month
Free Trial There is no free trial period. You are free to use the software without charge until one of the modules reaches its transaction limit in a calendar year. This provides you with a chance to test its features without time limits.
Key Feature
  • AutoCount POS: It supports retail and food & beverage businesses. It is an offline system with real-time data synchronization and can integrate with AutoCount Accounting.
  • AutoCount Accounting: It is an all-in-one package that combines accounting, inventory management, and billing. It is the ideal solution for SMEs seeking a low-cost option.
  • AutoCount Cloud Accounting: It is a cloud-based application through which accounting can be done using any device. It does not require a huge investment in hardware.
  • AutoCount HRMS: The payroll software comes with payroll, eLeave, eClaim, and Employee Portal modules. It addresses all regulatory requirements.
  • AutoCount OneSales: The sales software helps to manage sales on multiple platforms. It consolidates inventory data and enhances customer shopping experience.
Security Security is a prime concern for AutoCount. The software complies with industry requirements and uses strong technology to secure user data. Updates are regularly performed to ensure the e-invoicing system is secure.
App Integration AutoCount has seamless integration with the LHDN MyInvois system. This supports the efficiency of operations and ensures compliance. The software also supports third-party apps.
Support AutoCount ensures robust customer care through a large network of over 300 licensed dealers. Technical support is made available to the users whenever necessary. The firm also offers tips and updates for users to fully enjoy their experience.

4. Quickbook

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QuickBooks is a good accounting software for Malaysian companies. It is simple, making it easy to manage invoicing and accounting. QuickBooks simplifies invoicing, thereby saving time and reducing errors.

Packages /
Price Range		 Simple Start, Essentials, Plus, Advanced
RM68 - RM247 (50% off for first 3 months)
Free Trial30 days free trial
Key Feature
  • E-Invoicing: Users can easily generate and submit invoices. They can also track the status of invoices from their dashboard.
  • Automated Processes: The software automates payment reminders, invoice generation, and VAT calculations. This ensures accuracy and saves labor.
  • Multi-Currency Support: QuickBooks allows invoicing and recording transactions in over 145 currencies. It automatically adjusts for exchange rate variations.
  • Mobile Accessibility: QuickBooks provides a mobile application that allows users to manage invoices and accounting on the go. This provides flexibility when managing finances.
  • Custom Invoicing: QuickBooks offers custom invoice templates. Users can add their logos and other details to generate professional invoices.
Security QuickBooks takes data security very seriously with strict controls. It is monitored 24/7 and has advanced encryption. The users control the data access, and all are logged for accountability.
App Integration QuickBooks is easily integrated with other software, for example, the LHDN MyInvois system. It makes it more convenient and allows users to do all invoicing and accounting tasks in one place.
Support QuickBooks provides customer support through help articles, community forums, and video tutorials. Through it, users are able to obtain answers to common questions as well as technical support queries.

5. QNE AI Cloud Accounting

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QNE AI Cloud Accounting Software is a recent launch by QNE Software. It is designed for SMEs in Malaysia. The software is convenient to use and SST-ready, in which case the companies find it easy to abide by government tax requirements. QNE AI Cloud Accounting makes it easy for its users to track invoices, expenses, and reports.

Packages /
Price Range		 The price of QNE depends on the selected package and modules. Starter Pack Edition starts from RM800. For more information about pricing, please check here.
Free Trial30 days free trial
Key Feature
  • Full Set Accounts: The software maintains the General Ledger, Accounts Receivable, Accounts Payable, and SST Module. It provides centralized accounting data and real-time updates, improving accuracy and reducing reconciliation time.
  • Anytime, Anywhere Access: Anyone can use the system from any location on any device. They are able to prepare real-time statements and reports for easy scrutiny.
  • Compliance-Driven AI: The SST Advisor module verifies sales and service tax reports before submitting them to the Royal Malaysian Customs Department. This guarantees compliance.
  • Optical Character Recognition (OCR): The OCR feature allows users to scan documents and convert printed text to transaction entries. Time is conserved and accuracy enhanced.
  • E-Invoice Management: QNE has an e-Invoice module. It facilitates the collection of customer information and the sending of e-invoices.
Security QNE focuses on data security through strong controls. The software keeps user information and adheres to laws. The software uses encryption and safe means of access for securing data.
App Integration QNE AI Cloud Accounting integrates well with other programs. It accommodates LHDN e-invoice. It streamlines the accounting process and raises the efficiency level of operations.
Support QNE offers various support options, including consulting, installing, and training. Users have a professional support group certified by CCMI for assistance. QNE Support Center operates for round-the-clock support.
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Frequently Asked Question (FAQ)

1. In what way is an invoice different from a self-billing invoice?

An invoice and a self-billing invoice differ in the manner they are applied within business transactions. A normal invoice is an invoice sent by the supplier. It accounts for the selling of goods or services. The invoice confirms the revenue of the supplier and allows the buyer to track expenses.

Contrarily, the customer issues a self-billed e-invoice. This happens when the vendor is either unregistered or excluded from issuing an e-invoice. Self-billed e-invoices are used in specific instances. Foreign suppliers’ buys, payments to agents, and e-commerce buys are some of them.

The variation is mainly in who creates the invoice. Suppliers create regular invoices. Buyers create self-billing invoices. Being mindful of this variation is important to steer clear of infractions of Malaysian tax legislation. Self-billing allows buyers to prove their spending where regular invoicing is impossible.

2. Which transactions fall under e-invoicing?

E-invoicing in Malaysia includes many types of transactions. The most common ones are:

  • Business-to-Business (B2B): They are the ones involving businesses.
  • Business-to-Consumer (B2C): They are business-person-to-people consumer transactions.
  • Business-to-Government (B2G): These are business-person-to-government transactions.

3. What are the drawbacks of e-invoicing?

  • Technical Issues: E-invoicing depends on technology. Technical issues or system downtime can lead to delays and errors.
  • Implementation Cost: E-invoicing is expensive to implement. Businesses have to purchase invoice software and train employees, which can be prohibitive for small businesses.
  • Compliance Challenges: Compliance with domestic and international legislation can be complex.
  • Data Security Risks: Data can be lost as a result of hacks or human mistakes. Incorrect data can cause financial loss and legal problems.
  • Job Displacement: Automating invoicing can result in job displacement in certain areas. Businesses also have to make sure that suppliers stick to new procedures.
  • Technology Dependence: E-invoicing relies on a good internet connection and efficient systems. Customers may not be at ease with paper invoices and may not have internet connectivity.

4. What if an incorrect e-invoice is generated in Xero?

An erroneous e-invoice created on Xero will be rejected by the Inland Revenue Board (IRB). The invoice can’t be used. Failure could result in delay and compliance issues. Mistakes are usually caused by data input mistakes, incorrect format, and calculations.

To correct the error, you must withdraw the incorrect invoice. You need to issue a new document with a new Invoice Reference Number (IRN). If you need assistance, you can contact Xero support. They will provide you with information about the supplier who attempted to send the e-invoice.

Check on the blog-> E-Invoicing Malaysia: Your Top 9 Focused Questions Answered

5. Can taxpayers issue one credit note e-invoice to settle multiple original e-invoices?

Yes, Malaysian taxpayers are allowed to send a single credit note, debit note, or refund note e-invoice for the offset of more than one original e-invoice. This is allowed by the Inland Revenue Board of Malaysia (IRBM). Each original e-invoice IRBM Unique Identifier Number (UIN) should be entered in the ‘Original e-invoice Reference Number’ field.

There are no time restrictions on when you can send these adjustment e-invoices. This also holds true for consolidated e-invoices. This feature simplifies the documentation process and reduces the load on companies.

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