With Malaysia’s phased rollout of e-invoicing by LHDN starting in August 2024, many businesses are now required to adopt digital invoicing solutions. While the MyInvois portal by LHDN is available for free, it’s not always the most efficient choice, especially for SMEs dealing with higher invoice volumes, retail systems, or multiple business units.

Why Choosing the Right E-Invoice Software Matters

Choosing the right e-invoice software may help streamline your invoicing process, reduce manual errors, and ensure full compliance with LHDN’s structured invoice format. But the decision isn’t always straightforward. There are dozens of options in the market, from lightweight tools for freelancers to full-scale ERP systems for large enterprises.

This guide outlines how to evaluate e-invoice software solutions based on your business type, digital readiness, and invoicing needs. 

Not Sure Where to Start?

Use this five-step decision guide to identify what kind of e-invoice solution fits your business. Whether you’re a micro business issuing a few invoices a month or an established company looking for automation and integration, there’s an option that works.

Let’s begin.

#1 Are You Fine Using the Free LHDN MyInvois Portal?

Not every business needs a full-fledged e-invoice software. If you’re running a small operation or just getting started, the free MyInvois portal offered by LHDN might be sufficient. This step helps you decide whether your business can stick with the manual submission route or if it’s time to upgrade to something more automated.

Ask yourself:

Are You Issuing a Low Volume of Invoices?

If your business only sends a few invoices per month, for example, a small service provider or home-based freelancer, the MyInvois portal is a simple way to stay compliant. You can key in your invoices manually, and the system supports all invoice types required by LHDN, including credit and debit notes.

There’s no need for complex setup, software integration, or additional cost.

When Should You Consider a Different E-Invoice Tool?

Manual submission can become tedious and prone to errors as your operations grow. It may no longer suit you if:

  • You’re processing dozens of invoices every week
  • You want to automate invoice creation or validation
  • You need monthly summaries or audit trails
  • You have a team managing invoicing across locations

In these cases, using a proper e-invoice software will save time, improve accuracy, and help you scale more efficiently.

#2 Do You Already Use POS, ERP, or Accounting Software?

Many businesses already use tools to manage sales, inventory, or finances. If your company is using POS systems, ERP platforms, or accounting software, it’s worth checking whether these tools can support e-invoice compliance.

Option A: Your Existing Software Might Already Support E-Invoice Submission

Some popular platforms used in Malaysia such as SQL Accounting, AutoCount, Biztory, or Bukku have built-in or add-on features for e-invoicing. If you’re already using one of these systems, you may be able to activate e-invoice functionality without switching platforms.

This could be a good option if:

  • Your team is already trained on the platform
  • Your software provider supports LHDN-compliant APIs
  • You want to avoid additional migration or onboarding

Always confirm with your provider whether the e-invoice module is available, and whether additional setup or subscriptions are required.

Option B: Use Middleware to Connect Non-Compliant Systems

If your ERP or POS system doesn’t support LHDN’s structured invoice format, a middleware platform could help bridge the gap.

Platforms like JomeInvoice or BDO work across multiple systems by:

  • Integrating with major ERPs like SAP, Xero, and Odoo
  • Automating real-time e-invoice submission and validation
  • Offering dashboards to track invoice statuses, errors, and cancellations

This is especially useful for businesses with more complex tech stacks or higher invoice volumes. Some implementation effort may be required, so factor in your internal resources and timelines.

💡 Not sure if your existing system is e-invoice ready? If not, middleware like JomeInvoice can help. And for a limited time, you can get it free with SME financing from Funding Societies.

Special Limited Time Offer: Free E-Invoicing Software with SME Financing

Looking to bridge your current ERP or POS system with LHDN compliance? Let JomeInvoice do the heavy lifting. Now you can get started at zero upfront cost.

As part of our SME support initiative, Funding Societies has partnered with JomeInvoice, offering a bundled campaign for e-invoicing and financial support.

Apply for Micro Financing or Micro Financing-i between 1 August and 30 September 2025, and receive:

  • 3 months FREE e-invoicing subscription
  • RM1,000 waived onboarding fees
  • Optional 9-month extension at 33% discount (if disbursed by 15 Oct 2025)

How It Works:

  • Apply for Micro Financing/-i between 1 August – 30 September 2025
  • Get immediate software access after submitting your documents
  • No subscription activated without your explicit consent
  • Financing must be approved & disbursed by 15 Oct 2025 to unlock the extension offer

Offer ends 30 September 2025. Apply now and claim your free e-invoice software!

#3 Is This the Right Time to Digitise Your Business Tools?

If you’ve been thinking about modernising your operations, the rollout of e-invoice requirements may be the push your business needs to go fully digital. Rather than adopting e-invoice software as a standalone fix, you might want to explore full accounting or business management tools that also cover tax compliance and invoicing.

Tools That Offer E-Invoice as Part of a Larger Ecosystem

Some business software platforms include e-invoice features as part of their core offering. These tools vary in scope and complexity, and were built with different types of SMEs in mind.

Examples include:

  • SQL Accounting – often used by SMEs looking for accounting functions with SST and e-invoice support
  • AutoCount – commonly implemented by inventory-heavy businesses
  • Biztory – a cloud-based solution frequently adopted by retailers and F&B outlets
  • Bukku – offers accounting features with e-invoicing and is known for being beginner-friendly
  • JomeInvoice – middleware platform that helps bridge existing software with LHDN’s system
  • Xero – used by businesses looking at cross-border operations or Peppol compliance

Each platform differs in pricing, features, and level of integration, so it’s worth comparing their offerings based on your business structure and goals.

Think Ahead

Ask yourself:

  • Will your monthly invoice volume increase significantly?
  • Are you planning to expand into new regions or customer segments?
  • Will you need to connect invoicing with inventory, sales, or payroll systems?

Software that grows with your business could help reduce rework later.

#4 Do You Want Minimal Tools and Simplicity?

Not every business needs a full suite of accounting software or ERP systems. If you’re just looking to meet LHDN’s e-invoicing requirement with minimal fuss, there are simple, focused tools designed for that. This step helps you decide whether your business can stick with the manual submission route or if it’s time to upgrade to a proper e-invoice software solution.

Ideal for Freelancers, Micro SMEs, and Low-Volume Retailers

If you run a small business with a low invoice count such as a sole proprietorship, part-time side hustle, or a neighbourhood store, you might only require a basic e-invoice software that:

  • Generates compliant e-invoices
  • Submits them to the MyInvois portal automatically
  • Supports corrections or cancellations
  • Offers basic recordkeeping or reporting

Some solutions in the market are designed for this segment. They’re often designed with user-friendliness in mind and offer quick onboarding with little technical experience needed.

These tools may also include helpful features like:

  • Auto-capture of customer tax details
  • Bulk invoice upload for B2C sales
  • In-app support or help centres for troubleshooting

Warning Signs You May Outgrow These Tools Soon

While simplicity is great, it’s also important to plan ahead. A basic setup may no longer meet your needs if:

  • You’re hiring more staff to handle invoicing or operations
  • Your business is opening multiple locations or sales channels
  • You’re starting to deal with higher-value transactions or clients who demand custom formats

When that happens, you may need to upgrade to a more robust platform with better integration, approval flows, and analytics.

#5 Do You Need Industry-Specific Features?

Some industries have unique invoicing needs. Whether it’s syncing with a POS system, handling milestone payments, or managing large invoice volumes, the right e-invoice software should align with your business operations.

Retail, F&B, and Inventory-Heavy Businesses

If you run a retail store, restaurant, or any business that handles inventory and frequent transactions, look for software that:

  • Integrates with your POS system
  • Supports self-billed or consolidated e-invoices
  • Offers real-time validation and error alerts

Certain e-invoice software platforms, such as AutoCount or Biztory, are commonly used in these sectors because they combine accounting, inventory, and invoicing into one interface.

Professional Services and Freelancers

Consultants, creative agencies, and freelancers often need tools that can:

  • Generate invoices based on project milestones or retainers
  • Handle recurring billing cycles
  • Allow easy correction or cancellation when scope changes

Platforms that support custom billing structures, such as SQL Accounting or Xero, might offer features relevant to these business types.

Manufacturing or High-Invoice Volume Industries

Businesses that issue large batches of invoices, such as distributors or manufacturers, should prioritise platforms that:

  • Automate invoice generation and submission
  • Offer bulk upload or integration with inventory systems
  • Provide dashboards for managing status, rejections, or cancellations

Some e-invoice middleware platforms, including JomeInvoice and BDO, offer features suited to higher transaction volumes and ERP integration.

List of E-Invoice Software Providers

Choosing the right software often comes down to features, budget, and how well it fits into your existing operations. Below is a list of e-invoice platforms commonly used in Malaysia, including free tools, middleware solutions, and full accounting suites.

Provider Website Suitable For Key Features
MyInvois Portal myinvois.hasil.gov.my Micro and small businesses Free manual submission via browser, real-time validation; no system required.
JomeInvoice jomeinvoice.my SMEs and larger enterprises Middleware integrating ERP/POS; dashboard tracking, automated validation, IRBM compliance updates.
Bukku bukku.my SMEs and freelancers Cloud invoicing with basic accounting; consolidated B2C invoices, auto-capture of tax IDs, easy onboarding.
SQL Accounting sql.com.my Malaysian SMEs Local accounting, SST-ready; bulk invoicing, e‑invoice validation, inventory features.
AutoCount autocountsoft.com Retailers, distributors Accounting & inventory with e‑invoice engine; supports batch submissions and POS synchronization.
Biztory biztory.com.my Retailers and F&B outlets Cloud accounting with LHDN submission, error alerts; handles standard and consolidated invoices.
Xero xero.com Scalable and cross-border SMEs Peppol-ready e-invoices, multi-currency, API integration, plus full accounting suite.
ClearTax cleartax.com.my SMEs needing middleware flexibility Middleware for IRBM and PEPPOL, supports API uploads, format validation, and scalable invoicing.
Financio financio.co Startups and micro-SMEs Budget-friendly accounting & invoicing with IRBM-compliant submission, mobile access, local support.
QNE qne.com.my Malaysian SMEs needing hybrid solutions Cloud/on-premise accounting with e‑invoice module, QR code capture, support via resellers.
QuickBooks Online quickbooks.intuit.com Small to mid-sized businesses Cloud accounting with built-in e-invoice support, multi-currency, app ecosystem, export capabilities.

 

Final Tips Before Choosing Your E-Invoice Software

Once you’ve shortlisted a few platforms, take a step back and consider these practical factors before making a final decision.

Watch Out for Hidden Costs

Some tools may appear affordable upfront but include hidden charges. Always check for:

  • Setup or onboarding fees
  • Annual renewal or subscription costs
  • Extra charges for additional users or system integrations

Look for Support and Training

If your team is unfamiliar with accounting or invoicing software, choose a provider that offers:

  • Local customer support
  • Onboarding help or tutorials
  • Resources to troubleshoot common issues

This is especially helpful for SMEs transitioning from manual processes.

Prepare for Growth

Think beyond your current needs. If you’re expecting your business to grow:

  • Choose software that can scale with your operations
  • Look for modular systems that allow feature upgrades later
  • Consider how easily the platform integrates with other tools you might adopt

Need Help Covering the Cost of E-Invoicing Software?

Adopting e-invoice software may come with upfront costs, especially if you’re upgrading systems or onboarding a larger team. If you need working capital to support your business transition, explore Funding Societies’ business financing options designed for Malaysian SMEs.

Making the Right E-Invoice Software Decision

Choosing the right e-invoice software depends on where your business stands today and where you plan to go next. Use the decision guide above to assess your current tools, budget, and operational needs.

Want to learn more about how e-invoicing works in Malaysia? Read our e-invoicing Malaysia guide or explore our industry-specific resources for retailers, F&B, freelancers, and more.