As one of the two main certainties in life, tax compliance is vital to keeping a company alive and well. But with no globally recognised standard for AP processing and ever-shifting tax compliance mandates, multinational brands can waste resources keeping abreast of tax and invoice processing intricacies.
In a recent interview with Susie West at Shared Services Link, Tungsten Network CEO Paul Cooper explains how AP automation and invoice system tools can help lift the burden of maintaining accurate accounting records.
Here is a recap of the key points raised in the podcast, which you can listen to here. Stream episode Chapter 1: CEO Interview Series: Paul Cooper, CEO of Tungsten Network by sharedserviceslink podcast | Listen online for free on SoundCloud
Tungsten Network: Pioneers in electronic invoice processing
Over 21 years ago, Tungsten Network was formed when only point-to-point Electronic Data Interchange (EDI) solutions for invoicing were available to most businesses. Tungsten Network quickly became a pioneer in e-invoicing systems, accounts workflow, and e-billing. The company now has over 300,000 suppliers connected to the Tungsten Network.
CEO, Paul Cooper, commented that financing and accounts teams face an increasing number of global compliance challenges; these include:
- Tax compliance: Accurately meeting the varying local requirements imposed by tax authorities worldwide.Each country sets up taxation systems to minimise fraud and maximise tax recoveries. But without a globally recognised enforcement mechanism and mandates imposed with minimal warning and tight deadlines, accounts teams struggle to meet the requirements and adapt their processes accordingly.
- E-invoicing: Without a globally recognised standard for invoicing, it is up to accounts teams to pour over the details of supplier invoices and send them back if there are any inconsistencies. Accounts teams must maintain accurate records to avoid government penalties, audits, and reputational damage. However, it costs time and money to ensure all invoices are processed correctly.
How Tungsten Network can make tax compliance easier
Tungsten Network solutions are built for tax compliance in three fundamental areas:
- Validating baseline exceptions in invoice processing: AP automation tools can ensure each invoice contains the correct information in the necessary fields.
- Validating local fiscal requirements: Tungsten Network checks that businesses meet shifting tax compliance requirements on a country-by-country basis.
- Embedding specific invoice system rules: Tungsten Network’s USP is that it can customise workflows to fit accounts teams’ unique e-invoicing needs.
With the above three tax compliance fundamentals in place, any inconsistencies in paperwork are automatically flagged for correction. The time needed to manage invoicing decreases, and Tungsten Network reports that their buyers have reduced invoice processing costs by around 50%.
Tungsten Network invests in cutting-edge e-invoicing research and technologies
Many companies would find it unaffordable to hire in-house tax experts. However, Tungsten Network invests in the right expertise for them –– tailoring their AP processing tools to make day-to-day e-invoicing easier.
As well as hiring specialist teams, Tungsten Network also partners with leading tax compliance and technology thought leaders worldwide. For instance, a key Tungsten Network consultant, Ruud van Hilten, also sits as a panellist on the European E-invoicing System Processing Association (EESPA). Currently, the organisation is working towards creating an internationally recognised standard for invoicing systems.
The costs of managing AP automation are far lower than getting AP processes wrong
In summary, the benefits of managing e-invoicing and tax compliance with Tungsten Network far outweigh the costs of making mistakes in your accounting practices.
AP automation minimises financial risk to your business, keeps inland revenue services happy and your businesses’ reputation intact.
If you would like to find out more about Tungsten Network’s services, get in touch today by requesting a call with us.
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