The History of Electronic Invoice
In conjunction with the enforcement of e-invoicing in Malaysia starting this August 2024, let us look on the worldwide journey of e-invoicing throughout the years.
E-Invoicing Evolution Timeline
1960s – The First Electronic Data Transfer
The first e-document was sent in 1965. Using electronic data interchange (EDI), a shipping manifest was shared from one company to another.
1970s – File Transfer Protocol (FTP) Introduction
Through the introduction of FTP in 1975, file transfer can be done using the internet.
1980s – Entering Manufacturing Industry
Various retail and car manufacturing companies began encouraging their suppliers to use EDI.
1990s – The Arrival of Modern E-Invoicing
Greater utilisation by major corporations that have implemented EDI systems, facilitating either one-way or two-way communication between business entities.
2000s – Globalisation and Government Initiative
Across Europe, the integration of e-invoicing into the legislative framework has been a gradual process. Several countries in other continents also required businesses to adapt to e-invoicing to carry out tax-related activities.
2010s – Entering Mainstream Market
E-invoicing platforms began to offer increased user-friendliness and integration with other financial software, offering more automated and streamlined solutions tailored to businesses of various sizes.
2020s – The Era of Cloud-Based Solutions and Automations
E-invoicing experienced a notable increase in usage, largely driven by the global pandemic, which accelerated the adoption of digital transformation practices across various industries. Cloud-based solutions became widespread, allowing for real-time invoicing, global accessibility, and improved collaboration.
Conclusion
The evolution of e-invoicing, from its inception in the 1960s to the widespread adoption of cloud-based solutions in the 2020s, has been shaped by technological advancements and global trends. With Malaysia set to enforce e-invoicing starting August 2024, it’s evident that e-invoicing has become an integral part of business operations worldwide. The recent surge in usage, accelerated by the global pandemic, highlights the importance of digital transformation, enabling real-time invoicing, global accessibility, and enhanced collaboration across industries.
Interested to learn more about e-invoicing?
Book a FREE consultation session today!
*Our representative will contact you within 24 hours after submitting the form, this excludes weekends and public holidays.
