Ask any SME owner in Malaysia what keeps them awake at night, and you’ll often hear the same answers: “Did we submit our PCB deductions correctly? Are our invoices compliant with MyInvois? Will payroll be ready before the weekend?” These aren’t just minor admin tasks—they’re compliance obligations.
That’s why businesses are turning to integrated HR & accounting platforms that automate payroll, tax, and invoicing in one seamless flow.
Why Integration Matters More Than Ever
- Regulatory pressure & legal compliance
Malaysia’s government has introduced the MyInvois system to make e-invoicing mandatory under a phased schedule—starting August 2024 for large firms, then for smaller ones. That means invoices must follow specific formats, include QR codes, be cleared through the MyInvois portal or via APIs, and be stored for years.
Similarly, for payroll and tax: statutory deductions (EPF, SOCSO, EIS, etc.), PCB (Potongan Cukai Berjadual), LHDN approvals, etc. If your payroll software can automate all that, you reduce risk of non-compliance, fines, delays. Info-Tech already advertises payroll that is “approved by LHDN, KWSP and SOCSO” and automates those deductions.
- Efficiency & error reduction
Manual entry of timesheets, manual invoicing in PDF or Excel, manually reconciling tax with payroll—each step is a chance for error or delay. Automated systems detect mistakes earlier (wrong tax codes, missing statutory contributions, invoice fields missing required info), reduce rework, free up staff time.
- Cash flow & financial visibility
Invoicing automation speeds up billing cycles. Payroll automation ensures everyone is paid on time. Tax software integration helps you forecast how much will go out for taxes, statutory fees, etc. With all in one system, you get dashboards that show cash flow, outstanding invoices, liabilities for tax or deductions—all in near real-time.
What “One Software” Needs to Cover
To truly automate payroll, tax, and invoicing, the software must do more than just generate payslips or invoices. Here are the critical features you should look for:
| Feature | What it must do | Tie-in to Payroll/Tax/Invoicing |
| Statutory deduction automation | Automatically pull in rates for EPF, SOCSO, EIS, HRDF; compute PCB; update as government laws change | For payroll: deductions are correct; for tax: less manual reconciliation; for invoicing: correct tax amounts shown if invoiced goods/services attract tax |
| Integration with attendance, leave, claims | Import attendance, leave, expense claims to calculate payroll accurately | Ensures payroll is tied to real data; prevents over- or under-paying; supports claims tax reporting |
| e-Invoicing / MyInvois compliance | Generate invoices in MyInvois-approved format; integrate with MyInvois via API or portal; QR code inclusion; archiving for required number of years (e.g. 7 years) | For invoicing and for tax audits or verification |
| Tax filing & reporting | Built-in reports for LHDN, customisable tax forms; reminders for filing deadlines; perhaps even direct submission or export formats matching government systems | Improves compliance; reduces risk of late penalties |
| User access & roles, audit trail | Who approved the invoice; who modified payroll; visibility of changes; ability to lock periods (e.g. once payroll finalized) | Key for internal control, and often required during tax audits |
| Cloud / mobile / updates | Cloud storage (secure), mobile apps for approvals, updates when laws change (statutory rates, tax rules) | Means you stay up to date without manual patches; approvals/rejections can happen anywhere |
How Info-Tech Malaysia Helps You Automate All Three
Let’s see how Info-Tech matches these needs, so you can see how to automate payroll, tax, and invoicing with just one software (i.e. Info-Tech’s HR & accounting suite).
- Payroll automation with statutory compliance: Info-Tech’s payroll software automates EPF, SOCSO, EIS, HRDF, and PCB deductions. It is approved by LHDN, KWSP, and SOCSO.
- Integration among HR modules: Attendance, leave, claims, employee management—all integrated so payroll can pull real data.
- E-invoicing and accounting link: The E- Invoicing Software promises integrated accounting. Although e-invoicing mandates (MyInvois) require specific formats and clearances, the invoice generation process is simplified when accounting software is used that is already built to comply and interface with the system.
- Cloud-based, updates, risk reduction: As Info-Tech is cloud-based, real-time access is provided, updates are automatically applied, mistakes are reduced, and paperwork is minimized.
So if you use Info-Tech, many of the pieces needed to automate payroll, tax, and invoicing are already there. The key is deploying/configuring them properly.
Steps to Implement True Automation
Having software with features isn’t enough—there must be a plan. Here’s a suggested roadmap:
- Audit your current processes
Map how payroll is done now: how attendance data are captured, leave tracked, claims processed; how invoices are generated & submitted; how tax / deductions are handled. Identify pain points (delays, errors, redundancies).
- Select software or review existing software capabilities
If you already have Info-Tech, check if all needed modules are active: payroll, claims, accounting/invoicing. Confirm if it supports MyInvois-compliant e-invoicing.
- Configure statutory settings
Set up deduction rates, tax brackets, EPF, SOCSO, etc., within payroll module. Ensure that any configuration for invoicing includes required invoice fields (buyer/supplier info, tax details, etc.).
- Set up process for invoice generation & clearance
For e-invoicing, decide whether to use MyInvois Portal manually, or API/automated integration (if Info-Tech supports). Ensure invoices automatically embed required QR codes, get cleared, and stored.
- Train staff & define roles
Who approves invoices? Payroll changes done by whom? Who handles statutory filings? Clear roles avoid bottlenecks.
- Monitor, revise, and audit regularly
Once in place, check that payroll runs correctly, invoices are cleared, statutory deductions match government changes, tax forms are filed on time. Use audit trails built into the system to catch anomalies.
- Stay updated with regulatory changes
Malaysia’s tax, contribution laws, and e-invoicing mandates have changed recently (and will continue). Software vendors like Info-Tech will often issue updates if you’re on cloud version. Make sure to apply those updates.
Common Challenges & How to Overcome Them
- Incomplete data or poorly captured attendance → leads to wrong payroll or deductions. Use mobile attendance, biometric or GPS-enabled methods to ensure accurate raw data. Info-Tech provides attendance modules integrated with payroll.
- Resistance to change from staff used to Excel or paper invoices/payroll. Mitigate via good training sessions, piloting with small teams, showing them how time is saved.
- Integration gaps: Sometimes accounting and payroll tools are separate and don’t “talk.” Choose tools that are built for integration, or make sure your vendor (like Info-Tech) provides seamless integration.
- Overlooking local regulatory detail: E.g. changes in tax rates, MyInvois format, deadlines. Use software with compliance built in; assign someone to track regulatory updates.
Case Snapshot: What Your Business Could Save
Imagine a medium-sized business with 50 employees, issuing 100 invoices per month, with a dedicated HR/payroll person spending 15 hours per month manually adjusting deductions, chasing approvals, correcting invoice errors. By shifting to an integrated system:
- Payroll runs in 1 hour instead of 4
- Attendance & leave are automatically pulled in, reducing discrepancies
- Invoice generation + clearance via MyInvois done within minutes instead of days
- Tax / statutory reports auto prepared, reducing risk and audit time
The cost savings in manpower, delayed payments, errors, and penalties can often outweigh the subscription cost of the software, even more so if the software is priced
Final Thoughts
Automating payroll, tax, and invoicing with just one software isn’t just nice-to-have—it’s fast becoming essential in Malaysia. Between LHDN’s statutory demands, MyInvois requirements, and the push for digital transformation, businesses that stay manual risk being left behind or incurring costly mistakes.
Info-Tech Malaysia’s HRMS & Accounting Software already covers much of the ground: payroll automation, statutory compliance, integrated invoicing (accounting), cloud updates. If you follow the roadmap above—audit, configure, train, monitor—you can shift from being reactive to being proactive. That means fewer compliance worries, more accurate payrolls, faster payments, better cash flow, and more time to focus on growing the business.