Shared Services Critical Role in Latin American Compliance

Steve Sprague
April 12, 2016

Multinationals operating in Latin America are often surprised by the depth and complexities of business-to-government mandates pervasive in this region. From e-invoicing to e-accounting and now to shipping and human resources, governments in Latin America are entrenched in everyday business operations. Certainly companies can choose to see these regulations as a hindrance, but smart shared services departments can also leverage the required processes to enhance their operations.

When it comes to shared services in Latin America, automation should be the name of the game in Join us for a webinar with sharedserviceslink that discusses the role of shared services in Latin America. countries with mandated e-invoicing. While we typically recommend that any company processing more than 500 inbound XML e-invoices per month move to automation, the benefits go well beyond the reduction of manual processing and staffing efficiencies. Here’s a look at some of the additional process and risk reduction benefits of optimizing and automating shared services.

  • Procurement: By automating the match between purchase orders and the invoice, companies ensure accuracy – eliminating manual research and validations.
  • Inbound receiving: In many countries, a copy of the e-invoice must accompany shipments, making the validation of goods received and inbound receiving a simple scan-and-click process.
  • Accounts payable: The validations mentioned above streamline the accounts payable process, allowing AP teams to focus on errors and exceptions, and helping to ensure tax accuracy.
  • Supply chain risk reduction: Because of the significant penalties and fines, companies may turn shipments around at their gates if the accompanying e-invoice is missing, invalid or contains an error. With automation, validations can occur before the goods arrive, eliminating the risk of shipment delays and refusals.
  • Reduced audit risk: Manual procedures increase the risk of errors, and therefore audits. By automating approvals and integrating e-invoicing processes directly within your ERP, companies reduce the risk of discrepancies that trigger audits and fines.
  • Tax accuracy: The whole point of business-to-government mandates is to help governments ensure that they are receiving accurate tax payments. Automated shared services processes ensure that tax reports match invoices, and that tax payments are accurate.
  • Archiving: Latin American countries have strict mandates for how long companies must archive e-invoice and accounting records. Automating this processes ensures that records are available and accessible in the event of an audit.

The risks of not automating processes in Latin America are heavy – not just in terms of fines and penalties, but in business disruptions as well. The effects of shared services processes in this region ripple throughout company’s operations, meaning that optimization in this region needs to be a priority. 

To learn more about the role of shared services in this region, including a look at specifics within each country, register for our April 13 webinar in partnership with SharedServicesLink.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

Author

Steve Sprague

Steve Sprague serves as General Manager for international products at Sovos. His electronic invoicing and Business-to-Government reporting expertise stems from nearly 20 years of experience in the industry, with the last 10 years focused on the compliance regimes across Latin America and Europe. Steve manages International go-to-market strategy and field enablement which has led to the firm’s double-digit revenue/sales growth in the last three years.
Share This Post

LATAM VAT & Fiscal Reporting
May 20, 2020
Sovos Acquires Taxweb, Extends Tax Determination Capabilities in World’s Most Challenging Compliance Landscape

Earlier this month Sovos announced its second acquisition of 2020, completing our solution for Brazil with an unparalleled offering that solves tax compliance in the place where it is most challenging to do so.  Too many companies doing business in Brazil have been burdened by managing multiple point solutions for continuous transaction controls (CTCs), tax […]

E-Invoicing Compliance EMEA Turkey VAT & Fiscal Reporting
July 15, 2020
Cancellation and Refund Policies for E-Invoice and E-Arşiv Invoice

Taxpayers with annual gross sales of TRY 5 million and above are obliged to use e-invoice or e-arşiv invoice from 1 July 2020. Although the e-invoice has the same qualities as a paper invoice, there are occasions where it should be treated differently such as for cancellations and refunds. What is a refund invoice? A […]

EMEA IPT
July 15, 2020
Pay-Per-Mile Car Insurance – How Do You Tax That?

Car insurance premiums are always making headlines. With the cost of insurance for younger drivers continuing to rise, a new generation of drivers are questioning the need to own a car. Many drivers who live in the city or commute often only use their cars on weekends, but the cost to insure a car that […]

ShipCompliant
July 14, 2020
Kentucky DtC Shipping Laws Delayed

Earlier this year, Kentucky passed a bill enabling direct-to-consumer (DtC) shipping of wine, beer, and spirits by licensed suppliers. When the bill was originally passed, it was expected it would take effect by July 15, 2020. However, as our partners at Wine Institute recently confirmed, the state is instituting a delay on the implementation of […]

Asia Pacific E-Invoicing Compliance VAT & Fiscal Reporting
July 14, 2020
Asia: E-invoicing Developments Across the Region

The world has witnessed how several Latin American countries have successfully adopted e-invoices to replace paper versions and close VAT gaps – the difference between the revenue governments are entitled to receive and what they de facto manage to collect.    The positive effects of mandatory e-invoicing regimes, such as achieving simplification of the invoicing […]

ShipCompliant
July 13, 2020
How Importers Can Ship DtC

The beverage alcohol industry has many complicated rules and regulations that vary by state. Even though importers are similar to other members of the “supplier” tier (like wineries and breweries), they are often treated differently in federal and state regulations. This is particularly true when it comes to direct-to-consumer (DtC) wine shipping.  Currently, 46 states […]