Finance
Why businesses must get ready for mandatory e-invoicing
Published
2 months agoon
By
admin
Ken Clark, Director, Product Marketing, Business Network Cloud at OpenText
Invoicing is one of those business processes that has proved oddly resistant to the march of digitisation. Or, at least, partly. While many businesses have been moving towards some form of electronic invoicing for a while, studies have found that 80% of finance and IT leaders at medium and large-size enterprises are still frustrated by the need to manage paper records. [1]
Perhaps part of the reason for the slow transition lies in e-invoicing being seen as a ‘nice to have’, as opposed to an essential process.
This is not helped by the fact that many countries, the UK included, have no overarching e-invoice mandate. At this time, it is only mandatory for UK companies to use e-Invoicing with the NHS. All other public sector bodies introduced what’s effectively a “soft mandate” where the government agency is obliged to accept e-Invoices if they meet the published specification but suppliers are not mandated to issue e-Invoices.
This has seen the slow creep of a patchwork quilt of invoice processes and approaches. But more and more mandates are being introduced. In a December 2022 publication, the European Commission proposed to make e-invoicing mandatory for intra-Community flows as early as 2028, and more than 80 countries worldwide already have some form of e-invoice mandate in place. Around 50 have announced their intentions to do so.
So, organisations must get ready for mandatory e-invoicing or face being on the back foot when those mandates come in. But this should be viewed as an opportunity rather than a burdensome obligation.
3 reasons to convert to e-invoicing by default
Simplicity
As tax authorities seek to focus more on VAT/GST compliance and tax reporting, they are harnessing advances in digital technologies to improve visibility and control. One of the key methods is mandating real-time or near real-time e-Invoicing.
Unfortunately, there has been very little standardisation of models, platforms or technologies used in national governments’ e-Invoicing compliance regimes. This has led to huge complexity for businesses to manage when it comes to e-invoicing. But a robust, global electronic invoicing solution can offer greater traceability than paper invoicing and can be secured to guarantee the integrity and authenticity of invoices. These usually include a secure electronic backup, accessible online to the tax auditor from an intuitive web interface. This makes the process of recording, tracing, verifying and submitting accounts much simpler and more reliable.
Cost
Return on investment for any new tech solution is top of mind for CFOs right now. Luckily, e-invoicing has a proven significant impact in reducing costs through automation, improving human resource productivity, and reducing commercial and administrative costs[2].
The cost savings offered by e-invoicing can only be achieved with a fully automated invoicing approach. Electronic invoicing on PDF eliminates very few costs on the supplier side; and while this format is accepted for tax purposes, it offers few advantages to companies compared to adopting e-invoicing via end-to-end processing automation.
Speed
The automation inherent within modern e-invoicing solutions enables companies to process much larger volumes of invoices, with little need for error-prone human intervention. Some studies out there show that the average error rate for manual data entry is about 2%. That might seem small, but it compounds over time, with the potential to lead to significant financial losses. When it comes to regulatory obligations as well, total accuracy is vital.
Companies with fully automated electronic invoicing processes are able to get paid sooner and pay their suppliers more quickly. These indirect benefits can be crucial, sometimes outweighing direct savings on operational costs.
Overcoming the technical obstacles to e-invoicing
According to the IDG survey cited above, the main obstacles to adopting full automation of billing processes are data security (54%), integration with internal systems, e-procurement (45%), perceived complexity of the technology (36%), lack of expertise (32%) and integration with customers and suppliers (30%). In addition, 42% of professionals have billing processes that are compartmentalised by geographical area, department or information system. So, the main obstacle for companies is the integration of electronic invoicing into existing IT infrastructures.
In light of this, perhaps the best approach for companies looking to get ahead of the game on e-invoicing is to find a robust solution provided by a vendor offering greater technical support and expertise, in order to speed up and streamline that integration.
Get ready for global mandates
The regulatory landscape around e-invoicing may be patchwork at the moment, but all signs point to more global mandates ahead. Regardless, the direct and indirect benefits of e-invoicing mean that companies shouldn’t wait until they’re made to adopt it – indeed, there’s a real opportunity to grasp by making the move now.
Companies lagging behind in adopting e-invoicing will miss out on the opportunities offered by streamlining and eliminating operational costs, as well as improving cash flow. The risk is that they will lose their competitive edge to companies that are already benefiting.
[1] IDG MarketPulse, E-Invoicing’s Time Has Come, 2022
[2] 2022 Gartner report
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Finance
How technology can help win the war on financial crime
Published
1 day agoon
December 2, 2023By
admin
By Andrew Doyle, CEO of AML compliance software, NorthRow
Financial crime is on the rise and the stats are alarming. In the UK alone, 64 percent of businesses (according to data from the Global Economic Crime Survey) have experienced fraud, corruption or other incidents of financial crime within the last 24 months, while ONS stats show there were 3.7 million incidents of fraud in England and Wales in the year ending December 2022.
So it’s no surprise that financial institutions and other regulated firms are under increasing pressure from regulators (and the ever-evolving legislation they must adhere to) in the battle against dirty money. Regulators are imposing crippling fines for any compliance breaches, not to mention the significant reputational damage that comes with non-compliance.
Historically, financial firms have employed large numbers of staff to combat money laundering, but regulators are now expecting to see digital solutions in place to counter the risk of financial fraud, and with good reason. Technology can be the deciding factor in the war on financial crime and here’s why:
Better risk detection
Technology platforms can analyse historical data to predict potential incidents of money laundering, enabling organisations to take preventive measures, while also identifying unusual patterns or changes in customer risk profiles, which may also indicate suspicious activity.
Advanced analytics can help companies identify complex patterns across large datasets, making it easier to detect networks of fraud. It is also possible to assign risk scores to transactions or entities based on their likelihood of being associated with money laundering. This helps in prioritising high-risk cases for investigation.

Andrew Doyle
Enhanced customer due diligence
Automated software platforms can analyse customer information, public records, and other data sources to perform thorough due diligence on clients, identifying potential risks or suspicious behaviour before they are signed up.
RegTech automates the process of verifying customer identities and conducting enhanced due diligence on individuals and on companies, ensuring compliance with Know Your Customer (KYC) and Know Your Business (KYB) regulations, both vital components of anti-money laundering efforts.
More accurate identity verification
Biometric verification is a powerful tool in enhancing anti-money laundering and fraud detection. It involves using unique physical or behavioural characteristics of an individual to verify their identity. Traits like fingerprints, facial features, iris patterns, and voiceprints are unique to each individual and are nearly impossible to replicate or forge. This makes them highly reliable for verifying that clients are who they say they are.
Biometric verification can also reduce the number of false positives in fraud detection by providing a highly accurate means of confirming the identity of a customer. This leads to more reliable results and lessens the need for manual intervention.
Continuous and real-time monitoring
Real-time alerts allow for immediate action when suspicious activity is detected. This can prevent or minimise potential financial losses and damage to a company’s reputation. By identifying and acting upon suspicious activities in real-time, financial institutions can reduce the risk of financial losses associated with incidents of economic crime.
Continuous monitoring with real-time alerts can also help refine the accuracy of anti-money laundering systems over time. This reduces the number of false alerts and decreases the need for manual intervention.
To the future
According to data from Capgemini, 68 percent of UK institutions are already looking into real-time anti money laundering monitoring systems to stay ahead of potential threats while 86 percent, says Refinitiv, agree that innovative digital technologies have helped them identify financial crime.
So the data tells us that companies are already heading in the right direction when it comes to fighting fraud, but as the landscape of financial crime continues to evolve, financial firms must ensure they do the same.
By leveraging the right technology, businesses can ensure they not only meet regulatory requirements and safeguard their operations, but also protect their reputations and crucially, maintain that all important customer trust.
Finance
In 2024, payments will evolve to broaden accessibility
Published
2 days agoon
December 1, 2023By
admin
Attributed to Roy Aston, COO at Paysafe.
As we look to 2024 and beyond, businesses will need to adapt experiences to changing consumer needs and demands, working with payments providers to increase accessibility, offer broader choice, and more.
We break down some the forces driving evolution in payments over the coming years.
Payments need to be available to everyone, everywhere
Regardless of their location or situation, consumers do not want to wait when it comes to payments. The proliferation of smart devices has given users access to everything, all at once, and this is also expected when making transactions.
In 2024, banks and financial institutions will continue to push ahead with this journey to offer smooth, secure payments to everyone, everywhere, delivering services at the lowest possible barrier to entry. This also means ensuring consumers, even those that are unbanked or underbanked, have access to remittances and cross-border payments.
The first step in achieving this goal will be to improve reliability, security and availability, which may see traditional payment methods like debit and credit cards – still the most popular payment methods – become less dominant, while alternative payment methods (APM) like eCash and digital wallets will grow.
This is because, with the right payment provider, merchants can ensure these APMs are available anywhere in the world – eCash, for example, does not require a bank account to use. In addition, digital wallets and online cash can offer swift, secure transactions, helping users overcome security issues by not requiring them to enter their financial details.
Financial companies will embrace collaboration in 2024
While businesses can address consumer payment concerns using APMs, they must also look to bolster their own defences as the threat landscape changes. Increasingly advanced technology, like AI models, are now accessible to far more people, including threat actors.
To combat this escalating threat, it’ll be no surprise to see more financial companies collaborate in 2024 as they seek to improve cyber risk mitigation. This makes perfect sense – and would be a positive step for the industry – though it is easier said than done.
Businesses must share data legally, while aimed toward a positive purpose, rather than for pure profit. For example, if a financial organisation gains intelligence on a cyber group, they could share this with other companies to protect against bad money movement.
Ideally, collaboration could help improve anti-fraud, anti-money laundering, and cyber security measures, and more broadly reduce risk for businesses and consumers alike. But first, thinking around data governance may need to change.
Existing trends will evolve
While exciting new trends will emerge in 2024, we’ll also see the evolution of some that have yet to reach their full potential.
Embedded payments, for example, will continue to develop, with more businesses bringing together financial products with features like loyalty schemes to offer more added value to consumers.
Decentralised finance, too, should continue to build momentum in 2024. While decentralised finance, and specifically NFTs, have faced challenges this past year, it will be no surprise to see companies get to grips with changing regulatory requirements and continue to build in this area.
Open banking could also see a big 2024, with more APIs becoming available, and companies starting to develop new solutions to enhance customer experience and reduce friction in the payment ecosystem.
And while evolution rather than revolution is a necessity in technology, it’s always exciting to look ahead to the big trends that could shape the future – perhaps not in the year ahead, but beyond.
The future is quantum
Quantum computing is a trend that is as exciting as it is potentially frightening. Able to perform computations that are exponentially faster than ever before, quantum computing represents a new frontier and it will be thrilling to see how it is used in the years ahead.
Combined with AI, for example, quantum computing could optimise processes at a speed and scale never seen before – with serious benefits passed onto consumers.
In the nearer term, however, ensuring payments are available and accessible for everyone must remain the focus in 2024.
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