INTRODUCTION TO COMPLIANCE Invoicing compliance explained Many core business processes such as invoicing are now automated, which whileleadingtoleapsinefficiencyalso raises new issues in terms of checks and measures to ensure everything happens that should do. Exact requirements when it comes to invoicing vary hugely from country to country, which means ticking all the right boxes can be a challenge if you don’t know the rules. This is where knowledge is vital, and this guide will set you on your way. Why are invoices so complicated? In the world of administration, invoices often fall into two camps: those with the required information, and those without. Equally, the level of What does a perfect invoice look like? A perfect invoice is a compliant invoice. Creating a compliant invoice means making sure all the information is included that needs to be. When non-compliance is judged as tax evasion, getting this right is vital. On the face of it, this is a simple task. After all, a commercial invoice needs to include enough information to ensure the person sending the invoice, the Supplier, gets paid.What a compliant invoice looks like, however, is based on tax legislation which will vary between locations, and between detail required on an invoice, and its whereabouts, has long been a source of frustration and consternation. Some 19% of businesses surveyed for the Institute of Finance and Management’s 2015 AP Automation Study said compliance, control and security concerns were among their top accounts payable challenges, while 11% cited compliance and recordkeeping as their department’s “greatest pain”. For a single document, there are a lot of options available and a lot of stakeholders involved. Accounts payable, finance, legal, sales, procurement – all have an influence on the invoicing process, and sometimes different opinions on how it should be done. The world is changing as the digital revolution takes hold, making business across borders more accessible. With the progress, however, come new challenges to overcome. One such challenge is the age old issue of discrepancies in invoicing. Some62percentofCFOsatbest-in-classorganizations identify compliance and risk mitigation among their top priorities, according to The Hackett Group. 2