In an increasingly globalized world, companies are expanding their reach to new markets, which means they also deal with a wider range of suppliers, vendors, and customers. This can make it difficult to manage invoices and keep track of spending. CloudLogix can help.
Our global invoice management solutions make it easy to track and pay invoices from anywhere. Here’s how we can help address common invoicing challenges as your company expands its international business activity.
The Challenges With Invoicing on a Global Scale
When dealing with invoices from multiple countries, businesses need to be able to track spending in each currency. This can be challenging if your company uses a manual system or your accounting software isn’t set up to handle multiple currencies.
Businesses also need to be able to generate accurate invoices on accounts payable in the correct format for each country. This can be time-consuming, and if someone makes a mistake, it can lead to delays in payment. You need to be able to track payments and follow up on outstanding invoices, which can be incredibly challenging when dealing with multiple time zones.
Further, when expanding into new markets, businesses must be aware of the complex invoicing requirements in each country. Depending on the products or services being sold, there may also be import/export regulations to consider.
With differing international tax laws, multiple languages, and rapidly changing global compliance standards added to the mix, it’s easy to see why global invoicing can be so complex.
How Ineffective Global Invoicing Harms Businesses
These challenges with global invoice management are not simple speculation. A 2017 study found that cross-border payments correlated with high rates of payment errors. The study attributed the majority of these error rates to inconsistent global payment processes. Payment volume was also an issue, with the study concluding that companies with larger volumes of global payments had substantially higher rates of errors.
Payment errors can not only result in delays in payments but also serious financial losses as a result. Small and mid-sized businesses lose as much as $3 trillion globally yearly due to late payments. This is one of many areas that can be improved through invoice management software that includes accounts payable automation features.
Additionally, if a business isn’t compliant with the local laws as part of global invoicing practices, you could face penalties, including fines and interest charges. In some cases, companies risk being banned from doing business in that country.
Non-compliance can also damage a company’s reputation, making it difficult to do business in other countries. As an international business owner, it’s vital to partner with an invoicing solution provider that can help you ensure compliance with all relevant international laws and regulations.
Examples of Complications in Global Invoicing
Many recent developments have highlighted the complexity of global invoice compliance.
– Italy recently passed a law requiring businesses to issue electronic invoices for all B2B transactions. This is a significant change as businesses will now need to invest in new software or change their existing accounting systems.
– Another example is the UK’s Making Tax Digital (MTD) initiative, which requires businesses to use digital invoicing solutions for all VAT-related transactions. This has been a major change for businesses as most were not using digital solutions prior to the introduction of MTD.
– Singapore has also introduced new requirements for businesses, mandating that they use e-invoicing for all B2B and B2G transactions starting from January 2020.
These examples offer a glimpse at how compliance standards can change rapidly, and businesses need to be prepared to adapt.
Simplifying Global Invoice Management With CloudLogix
You can navigate the above issues more effectively with a simplified invoice management system. CloudLogix offers a comprehensive solution that can help businesses with all aspects of global invoicing, from compliance to payment management.
Some of the specific features that can help businesses streamline their global invoicing and payment processes include the following.
– Cloud-based solution: With CloudLogix, businesses can access their account from anywhere in the world, and this means they can generate invoice receipts and make payments regardless of location.
– Time-saving features: CloudLogix includes a range of time-saving features, such as templates for common invoice types and the ability to create custom audit rules. This can help your business focus valuable time and resources on innovation and the direct growth of your business.
– Compliance assistance: As a compliant platform, CloudLogix can help businesses stay compliant with the latest developments in global invoicing, especially as more and more countries pass new laws or create new regulations.
– Real-time global visibility of invoicing and approval process: CloudLogix provides businesses with real-time data on their invoicing process. This can help businesses identify areas of improvement and pivot when necessary.
– Centralized shipping data: With CloudLogix, businesses can manage all their shipping data in one place, including tracking shipments, generating advanced shipping notices, and more.
– Integrations: CloudLogix integrates with various accounting, ERP, and CRM solutions. Our platform accepts data from nearly any source and translates it into a format that can be easily leveraged across the entire enterprise. This gives businesses the flexibility to choose the systems that work best for them.
CloudLogix is the simplest way to streamline global invoice management for your business. Using one seamless platform equipped with smart invoice automation features, you can focus on your business goals and leave the invoicing headaches up to us.
If you are ready to take your business’s global invoicing to the next level, schedule a demo of our CloudLogix platform today. See how we can help simplify the complexity of invoicing on a global scale!