Is it time to embrace 100 percent digital finance?

Blog Best practice April 3, 2019

There is so much to gain by going digital. But just how easy is it to implement? Fredrik Rosenqvist explains how Pagero supports ERPs and business as they attempt the jump from working locally and manually, to digitally and globally.

A dizzying digital world

There is so much to gain by going digital. We’re told that in a digital world, businesses can communicate quicker, organise better and save more. We hear it all the time, it sounds perfect. But just how easy is it to implement?

For some, it can be a confident transition, but for others, the jump to digital finance solutions such as e-invoicing can be a leap into the unknown. If the transition to digital isn’t smooth, it can fast turn into a nightmare of incomprehensible tech, mind-twisting legislation and a large bill at the end. For some businesses, the digital transition leaves them asking themselves, is this really working for us and are we really any more efficient than before?

“True e-invoices promise transparency and savings previously not possible to realise.”

It is plain that going digital brings with it growing pains. The sheer speed of change can be exhausting for those businesses still finding their feet. To established industrial giants, the change is seismic and can cause all sorts of complications if done wrong.

Why more digital in finance?

One of the fastest digital growth areas lies in e-invoicing. According to the Billentis Report 2017, the total global bill/invoice volume B2C/G2C B2B/B2G/G2B for 2017 was in the region of 400 billion. True e-invoices promise transparency and savings previously not possible to realise.

Statistics have shown that in Europe, roughly 12.3 per cent of all VAT revenue goes missing every year, roughly 150 billion. Governments in Latin America have introduced not only business-to-government but also business-to-business e-invoicing mandates. As a result, there have been considerable gap reductions. In Mexico, the tax gap was reduced by about 50 per cent, and the tax revenue in Brazil has increased by 60 billion euros.

As more and more countries begin to legislate to enforce the use of true e-invoices to both increase transparency and simplify their interaction with suppliers, companies and businesses are also turning to the data-driven paperless invoices. They also see the cost savings and benefits of powerful data use combined with automation when it comes to overall efficiency.

Pagero helps you focus on what you do best

However large or small they are, all businesses with their sights fixed on working internationally have to appraise the best use of their time and resources. Digital financial transactions can prove complicated and time-consuming. Cross-border interactions bring with them differing legal requirements, international customers often use differing systems.

Following the development of the technologies, the changes in the law in each country and staying aware of which systems your customers are using all takes precious time away from your core business. Working internationally can mean that at times, two ends don’t meet.

Pagero is an experienced facilitator for e-business transactions. Pagero recognises that compliance is one of the keystones in effectively digitising your financial transactions internationally. It can be difficult to follow a country or market rules. If a business doesn’t adequately follow the rules the business will be lost. Pagero offers clients our best practice and interpretation of each market.

“We take the pain out of the process by efficiently processing your data transparently and in real-time.”

Once compliance is up to date and maintained, another area any growing business is concerned with as it operates at a larger scale is reach. Pagero has roaming agreements with many other networks, including PEPPOL, to ensure maximum business reach. Importantly, Pagero works transparently to ensure each business fully understands how to communicate with each other.

Data accuracy and real-time operation

Once systems are 100 per cent digitised, great savings and efficiencies can be made, such as the VAT gap reduction. However, when so much data is involved, it is important for businesses to be careful of data loss or loss of control.

Maintaining businesses data and it moves digitally internationally from ERP to ERP is one of Pagero’s key strengths. We take the pain out of the process by efficiently processing your data transparently and in real-time with nothing being kept on off-line systems.

Once a business is certain that all its data is accurate (such as pricing details, invoices etc.), it is possible to gather more of control and ultimately save more. If you are not data accurate and are receiving data on multiple formats, there is the possibility of losing data. Pagero can ensure that no data is lost during transactions.

Once partnered with your ERP system, Pagero’s knowledge of compliance, interoperability and global reach, and its emphasis on data accuracy will ensure that you will be able to operate confidently in an ever more interconnected and digitised business landscape.