Three Reasons Finance Departments Must Make eInvoicing a Top Priority

Gustavo Jiménez
May 18, 2018

Since the first launch of eInvoicing mandates in Brazil 10 years ago, eInvoice adoption has now spread worldwide. Governments are implementing complex, real-time, transaction-level requirements to gain visibility into tax liabilities, close the tax gap and minimize corporate tax evasion. eInvoicing compliance is not a simple process for businesses – it requires a total shift in the way companies operate and conduct business, and should be a top priority for finance teams as more and more countries adopt this approach.

With real-time tax audits becoming increasingly common, companies must develop and submit their eInvoices with 100% accuracy, making this process a key focus. For finance departments, compliance with eInvoicing requirements presents several challenges:

  • Errors and discrepancies – With greater audit automation, errors and discrepancies can be easily discovered, triggering costly audits, fines and even potential operational shut-downs.
  • Audit trigger points – Key audit triggers include sales, purchases, payments, payroll and travel/expenses. Each needs its own valid XML to reduce the risk of a potential audit.
  • Validation – Without validation of data, several errors can be overlooked in reports, including missing payment classifications, foreign invoices and non-deductible expenses.

While some companies see keeping up with eInvoicing regulations as a hassle, this process actually provides several business benefits – reduced costs, streamlined workflows, increased ROI – if completed properly. That’s why a proactive approach to eInvoicing should be a top priority for finance.

To ensure your finance department is making the most of eInvoicing, focus on the following positive impacts:

  1. Automated accounts payable, receivable and tax reporting – Because information from eInvoices can be directly input into payment and accounting systems, companies can ensure accuracy throughout the entire submission process. In addition, eInvoicing capabilities support tax reporting, streamlining reconciliation and facilitating automation of tax filings.
  2. Improved record keeping and visibility into transactions – When integrated into other processes – like logistics and VAT compliance – eInvoicing provides access to data that helps safeguard companies from risks of fines, penalties or operational shutdowns.
  3. Strong, defensible audit trail – Having records more accessible allows for greater visibility into transactions and provides businesses with a strong trail that will help them answer questions from tax authorities in case of a potential audit.

After all, proactive eInvoicing compliance can result in a 25% increase in productivity, saving businesses valuable time and money.

Take Action

As businesses worldwide adapt to these new regulations, proper technologies and solutions must be in place to ensure compliance. To learn more about the world’s first global compliance solution for eInvoicing, contact us today.

Sign up for Email Updates

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

Author

Gustavo Jiménez

Gustavo Jimenez is the Product Marketing Manager for Sovos’ e-invoicing solutions and is based in Atlanta. Gustavo is responsible for go-to-market strategy for Sovos LatAm e-invoicing solutions in countries with existing and upcoming mandates. He has more than five years of experience in e-invoicing, middleware integrations, and regulatory research. He works closely with the product management and development team as well as sales and marketing to facilitate compliance process transformations for Sovos clients. Prior to joining Sovos, Gustavo was responsible for marketing activities and strategy at Invoiceware International, a leading e-invoicing solution for businesses with operations in Latin America. He focused on the go-to-market strategy of their solutions as well as communications with the LatAm market about regulatory changes and new solutions.
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 […]

ShipCompliant United States
June 3, 2020
4 Steps to Get Started Shipping DtC

Direct-to-consumer (DtC) shipping of beverage alcohol products is a $3 billion market that continues to grow annually. DtC shipping can be a great way to grow your business by reaching new audiences, expanding your customer base, and increasing your sales. But, before you can take advantage of this growing market, there are some steps your […]

E-Invoicing Compliance LATAM Tax Compliance VAT & Fiscal Reporting
June 3, 2020
Latin America: An Update on E-Invoice Requirements

In the field of global e-invoicing and tax control, most eyes have been focused on trailblazing initiatives in Asia, as countries such as India, Vietnam and Thailand look set to introduce new reforms in this area. However, even in the home of mandatory digital tax controls – Latin America – where mandatory clearance of B2B […]

EMEA IPT Italy Tax Compliance
June 3, 2020
Italian Parafiscal Complexities

Premium tax and parafiscal compliance for insurers authorised to operate under the Italian regime can be challenging. For the experienced, it may seem that each year brings a different obligation to be met with new requirements often being introduced. There are almost always links between an upcoming year’s reporting requirements and declarations made in previous […]

Tax Compliance Tax Information Reporting United States
June 1, 2020
The Advantage of a Cloud-First Company

With the acquisition of Eagle Technology Management (ETM) and Booke Seminars, Sovos has united the very best in statutory reporting solutions, technology and expertise. Below is an overview of our strategy following these acquisitions: Sovos’s SaaS and Security Strategy  Sovos at its core is a Software as a Service (SaaS) and cloud-first company. This means […]

ShipCompliant United States
May 28, 2020
Ask Alex: Your Bev Alc Compliance Questions Answered (May 2020)

Do you have questions about the rules, regulations, and compliance requirements of the beverage alcohol industry? This series, Ask Alex, is a perfect opportunity to get those pressing questions answered straight from one of the industry’s regulation and market experts, Alex Koral, Senior Regulation Counsel, Sovos ShipCompliant.  To take advantage of this opportunity and get […]