Summary of "Compliance Without The Boring Bits - Episode #2 - All things Invoice Archiving"
Summary of "Compliance Without The Boring Bits - Episode #2 - All things Invoice Archiving"
This episode focuses on practical insights into Invoice Archiving within the broader context of electronic invoicing (e-invoicing) compliance. The hosts, Marcus Hornberg (Senior VP Global Compliance at Basware) and Gustaf (Compliance and Invoicing Advisor), share real-world experiences, challenges, and strategic advice for businesses navigating Invoice Archiving and compliance mandates globally.
Main Financial Strategies, Market Analyses, and Business Trends
- Invoice Archiving as a Critical Compliance Component Archiving is emphasized as a legal and operational necessity distinct from e-invoicing mandates. Proper archiving ensures data integrity, authenticity, and audit readiness.
- National vs. Global Compliance Challenges Archiving laws vary by country, creating complexity for multinational companies that must maintain different processes for each jurisdiction.
- Importance of Communication with Suppliers Clear communication of archiving and invoicing requirements to suppliers is crucial to ensure standardized, compliant invoice data and avoid audit issues.
- Authenticity and Integrity in Archiving
- Authenticity of origin: Verifying the supplier’s identity to ensure invoices correspond to actual transactions.
- Integrity of data: Maintaining invoice data unchanged throughout the retention period, which can vary significantly depending on the invoice type (e.g., real estate-related invoices may require very long retention).
- Government Mandates and Their Limitations Governments often implement mandates for e-invoicing and archiving but may lack clear communication or reliable archiving solutions. Businesses should not rely solely on government portals for archiving, as governments might retract or change policies.
- Technology and Process Recommendations
- Use specialized archiving products or services rather than relying solely on AP (Accounts Payable) or OCR tools.
- Centralize invoicing and archiving processes to improve visibility and agility.
- Avoid building archiving solutions in-house; partner with providers who specialize in compliance and archiving.
- Market Trends: Impact of Global Events Tariffs and supply chain disruptions (e.g., US, Mexico, Canada trade complexities) increase the need for accurate invoicing and compliance. Potential for electronic invoices to replace customs documents and facilitate cross-border trade compliance.
- Emerging Technologies and Networks Singapore’s upcoming e-invoicing mandate via the Peppol network (starting November 2024) highlights the growing adoption of standardized digital invoicing platforms. Peppol is a transport mechanism enabling invoice exchange but does not solve business process optimization challenges.
- Advice on Adopting Peppol and Other Networks
Methodology / Step-by-Step Guide to Invoice Archiving and Compliance
- Assess and Understand Legal Requirements
- Identify what constitutes the legal tax object to archive in each jurisdiction.
- Understand retention periods, which can vary by invoice type and country.
- Establish Clear Communication with Suppliers
- Define and communicate archiving and invoicing requirements upfront.
- Ensure invoices received are standardized and compliant.
- Implement Proper Archiving Solutions
- Use dedicated archiving systems or services, not just AP or OCR tools.
- Ensure systems support authenticity (supplier verification) and integrity (data unchanged over time).
- Centralize and Document Processes
- Create centralized invoice processing and archiving workflows.
- Document archiving processes thoroughly for audit and tax administration purposes.
- Assign responsibility for archive management within the organization.
- Prepare for Government Mandates and Changes
- Monitor regulatory developments globally and locally.
- Do not rely solely on government archiving portals; maintain your own archive.
- Be agile and ready to adapt processes quickly.
- Leverage Service Providers
- Partner with specialized providers for technical compliance and archiving services.
- Avoid building complex compliance infrastructure internally.
Presenters / Sources
- Marcus Hornberg – Senior Vice President, Global Compliance at Basware
- Gustaf – Compliance and Invoicing Advisor at Basware, based in Finland
This episode combines practical advice with strategic insights to help businesses stay compliant and efficient in the evolving landscape of electronic invoicing and Invoice Archiving.
Category
Business and Finance
