Vertex Inc, a global provider of indirect tax solutions, announced new e-invoicing research revealing that a majority (79%) of global business leaders believe e-invoicing mandates are beneficial to business. Furthermore, 80% agree that these mandates will improve data accuracy and financial reporting at a time where precision is needed most.
The survey, which polled 1,150 global tax and finance professionals, shows that e-invoicing implementation is on the rise as 80% of businesses plan to improve the integration of e-invoicing systems over the next two years, pointing to a positive attitude shift towards the evolving landscape. This sentiment carries over to their financial health, with tax and finance leaders citing e-invoicing for improving efficiency as well as cost savings (both approximately 60%) and enhanced economic growth and global competitiveness (approximately 80%), regardless of whether they are selling into or based in e-invoicing mandated countries.
“Today’s tax and finance leaders are operating under increased pressure to drive growth while maintaining tax compliance. This challenge is compounded by rising complexities driven by increased variances around tax rate determination or scope of transactions for real-/near real-time reporting,” said Chris Hall, Senior Tax Officer, Vertex. “Preparing for e-invoicing, or aligning with current local mandates, should not add to these uncertainties. Research shows that e-invoicing offers the accuracy, efficiency and cost optimisation needed for future-ready organisations.”
While the global behavioural shift is positive, e-invoicing implementation is not without its challenges. Approximately half (51%) of respondents in markets selling in mandated countries report maintaining data security and privacy while adhering to diverse international standards as their biggest challenge. Current and soon-to-be mandated countries identify integrating with existing software (55% current, 63% soon-to-be) as their largest roadblock.
As the e-invoicing landscape and scale of global mandates continue to evolve, other key highlights of the report include:
- Impact on sales: e-invoicing jurisdictions could become a greater concern in the future if businesses are unable to issue or receive invoices. Businesses selling in mandated countries report that 47% of sales would be in scope of these mandates, and that percentage could increase to 57% by 2027.
- AI support surges: Leaders are using AI in various ways to support e-invoicing across markets, such as customer support and query resolution (53%), cash flow management (51%) and fraud detection and prevention (49%). Most respondents (86%) are currently using AI or planning to use AI.
- Stakeholders on board: 83% of accountants and financial professionals expect to receive the greatest benefit from mandatory e-invoicing. Similarly, 81% of respondents identified IT departments as another key beneficiary, speaking to the critical role of technology and IT support in financial reporting.
- Bandwidth challenges: Second to maintaining security and privacy, time is a large roadblock to e-invoicing adoption. The survey finds that the ability to run frequent system updates (49%), integrate solutions with existing systems (48%) and train staff and stakeholders on new processes (46%) poses issues for organisations.
To learn more about Vertex’s e-Invoicing solutions, visit www.vertexinc.com/solutions/e-invoicing.
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