Checklist to Prepare for e-Invoicing in Your Company
Below is a list of useful questions that your company needs to know the answers for in order to determine and to cost your e-invoicing strategy.
- How many invoices do you send/receive globally, by country?
- What is your average cost per invoice?
- Can you calculate your hurdle rate?
- Do you do business in Europe, Asia-Pacific, South America, or North America?
- If so, which countries do you trade in?
- Does your organisation want to move to electronic invoices globally including managing regulatory compliance for Value Added Tax (VAT) and/or Goods and Services Tax (GST)?
- If so, what countries will you need to support from a tax jurisdiction perspective?
- Is this for the Buy and/or Sell side of your business?
- Who are your main suppliers or customers and in what countries are they based?
- Do you need to interact with your suppliers/customers more effectively?
- Do you need to implement global corporate social responsibility programs or manage large supplier/customer interaction projects?
- What global corporate initiatives does your organisation have in place for Procurement, Corporate Tax, Accounts Payable, and Accounts Receivable?
- Globalisation
- Cost reduction/Efficiencies
- Government mandates/regulation
- Consolidation (Integration, ERP, Tax, etc.)
- Customer satisfaction
- Green or paperless IT
- Other
- What are your CFO’s top objectives?
- Globalisation
- Process efficiencies
- Cost reduction
- Consolidation (Integration, ERP, Tax, etc.)
- Customer satisfaction
- Other
- Does your company have Tax, Procurement, Accounts Payable, and Accounts Receivable representatives in various regional offices? If so, in what countries?
- Does your Tax or Accounting Department have a function that is specifically focused on Value Added Tax? If so, for what regions or countries?
- Who are the key contacts in those regions?
- What is the level of effort that your organisation goes through to prepare for and execute regional VAT audits?
- Are there some countries that are more difficult than others to do VAT audits in?
- What are the costs associated with this effort?
- Do you have global business units that set overall corporate directives for Procurement, Tax, and Accounting (Accounts Payable and Accounts Receivable)? Or are those functions supported in regional offices?
- Do you have a centralised, global IT department, or is your IT department regionalised?
- If regionalised, which countries are supported by which regions?
- How much VAT does your company report on and for what countries?
- What percentage of it is handled via electronic invoices and by which country?
- What is your VAT input and output related to each country (i.e. what VAT do you claim (input) and pay (output) for each country) per year?
- Do you know what your financial exposure is for each country (VAT to reclaim)?
- Do you know your priority country(countries) for an e-invoicing solution should you decide to implement one?
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