BETTER VISIBILITY IS BETTER FOR BUSINESS
Fear of fines and penalties aside, businesses know that improving data visibility is an opportunity to secure competitive advantage and to build resilience to unexpected risks.
FIRMS ARE STRUGGLING WITH SUPPLIER UNCERTAINTY AND INCREASINGLY COMPLEX E-INVOICING AND TAX MANDATES IN THE WAKE OF THE PANDEMIC.
Global supply chain challenges are taking longer than expected to normalise. Costs for business and the prices they charge rose in August 2021 at some of the fastest rates in the past 20 years.
TOP THREE COMPLIANCE AND SUPPLIER RISK DRIVERS FOR BETTER DATA VISIBILITY
Instability in the financial supply chain
Accounting complexity due to multi-jurisdictional compliance requirements
Increased reporting requirements to governments/regulators
EUROPEAN FIRMS WORRY ABOUT REGULATORS
“Increasing reporting requirements to governments and regulators are driving the need for better visibility of finance and procurement data”
Taxes are a significant source of revenue for governments seeking to address the challenging economic impact of the pandemic. The EU, for example, estimates that the VAT gap for the region as whole, including cross-border VAT evasion and fraud, was around €120 bn in 2020, almost equivalent to the entire annual EU budget.
A binding EU-wide mandate for electronic invoicing is currently being evaluated as a result. It is considered to be the most effective single measure to combat cross-border VAT evasion or fraud, according to a recent study by the European Parliamentary Research Service.
COMPLIANCE AND DATA VISIBILITY INCREASE TRUST
of firms say trust from customers and partners is the biggest strategic business benefit to be gained from better compliance
...AND THEY MAXIMISE EFFICIENCY AND ROI
of firms expect to run more efficient business processes because of better data visibility
expect reduced costs and improved ROI as a result
Introducing an e-invoice system, for example, can capture all data included on invoices and ensure compliance with mandatory governmental mandates such as post-audit or clearance models. These mandates are already in force in regions including Germany, India and the Nordic countries, while France has announced plans to introduce mandatory e-invoicing for companies of all sizes by 2025.
RELIABLE AND EFFICIENT: THE STRATEGIC VALUE OF IMPROVED COMPLIANCE
Companies that invest in accessible data – and the automated tools to analyse the data – will gain a substantial competitive advantage. We have worked very hard to move our finance and other functions beyond their traditional focus through the use of more sophisticated, automated tools. These tools mean that our financial and other teams can advance beyond the important activity of data assembly to higher value adding analytical work.”
William Daly Greiter, Managing Principal – Acquisitions and Divestitures, American Family Mutual Insurance Company
REALITY CHECK: INCREASING VISIBILITY THROUGH AUTOMATION
One of the largest multinational automotive manufacturers, based in Germany, wanted to make its compliance processes more efficient, cut paper volumes and reduce costs. The company rolled out a holistic global e-invoicing strategy, which means all affiliated companies worldwide now process invoices via a central portal.
The impact has been far-reaching. As well as gaining greater transparency and higher quality data, the firm says it is able to complete invoicing and payment processes more quickly, and has reported high savings on a transaction basis.