Electronic invoicing, or e-invoicing, is the process of exchanging machine-readable invoice data with vendors and customers through a designated tax authority portal. E-invoicing is becoming increasingly complex because different countries are implementing rules to digitize the imposition, collection and enforcement process and bridge the value-added tax (VAT) gap and recover billions of dollars lost annually due to tax noncompliance.
In today’s dynamic business environment, amid shifting rules and requirements around e-invoicing, an e-invoicing readiness assessment is crucial to any business that trades globally that is either already required to comply with e-invoicing rules or will be required to abide by the rules in the near future. This electronic invoicing method grants governments real-time visibility into organizations’ transactional data.
An e-invoicing readiness assessment is imperative for businesses to identify and rectify gaps and inefficiencies in business processes, system compatibility and data accuracy.
How to determine whether an assessment can help your organization
A smooth and successful e-invoicing implementation starts with a e-invoicing assessment, which can:
- Ensure you are able to identify current invoicing processes, data and systems
- Confirm and assess existing organizational people, processes and technology to meet the demands of e-invoicing requirements
- Be aware of relevant VAT laws, e-invoicing requirements and target dates for e-invoicing mandates as they are implemented
- Evaluate the quality, accuracy and accessibility of your transactional and invoice data for seamless integration with e-invoicing platforms and the corresponding transmission protocol to the tax authorities’ portal
Do you have the following concerns in preparing your organization to adopt and implement e-invoicing requirements?
- Is your current enterprise resource planning (ERP) or billing application struggling to handle the complexities around e-invoicing?
- Do you have a clear strategy for navigating the ever-changing landscape of e-invoicing rules, affected business transactions and implementation dates?
- Is your business transactional data consistent and accurate?
- Are your tax and invoicing tasks scattered across overworked teams with no dedicated e-invoicing sponsor or champion?
If you answered yes to any of these, an e-invoicing readiness assessment from RSM US LLP may help you ensure compliance with the digitization of the invoicing process.
