DocProcess and Deloitte România have participated in the first 2019 reunion of the CCIFER Finance Group.
Over the course of almost two hours of debate on topics such as fiscal conformity, taxes, and risk management, Liviu Apolozan, DocProcess CEO and a member of the European Committee for Standardization of e-invoicing, along with Vlad Boeriu and Ramona Tariuc from Deloitte Romania have answered the most pressing questions about the future of electronic billing.
With an audience that included the representatives of the biggest financial services, pharma, and real estate companies on the market, the event focused on topics such as the legislation and necessity of e-invoicing, within the larger context of digitalization.
Legislation and Necessity
Romania is soon to face the repercussions of the 2014/55/EU European directive regarding the e-document exchange for public acquisitions. Most European nations have already implemented or are about to implement e-billing at a public level, both locally and nationally, as part of the public service digitalization effort. However, our country is not yet among these nations.
More specifically, the directive implies that, starting with the 18th of April 2019, public authorities, as well as all companies that do business with them, should be capable of issuing and receiving documents in an electronic format. You can read more about the directive here.
Furthermore, these measures are a way of reducing VAT fraud, a chapter at which Romania has a problem, occupying the first place in Europe at failing to collect VAT, with uncollected sums of six billion euro, according to the latest European Commission report.
In just one year, a system quite similar to e-invoicing as well as a „clearing house” system have reduced national fraud in Latin America with 90%. The solution? Systematic digitalization!
Security and Conformity
The basis of financial process digitalization, the electronic invoice, is an invoice that has been issued, received, and processed electronically – from its creation within the issuers financial system to its processing and integration in the receiver’s equivalent system.
The automation of the invoicing process can bring a decrease of document processing costs of up to 80%, taking over all the processing and validation operations from the human user. Such a process increases operational efficiency, eliminates errors, and insures predictability at a cash-flow level, as the DocProcess representative explained.
The automation of the billing process can decrease document processing costs with up to 80%, taking over all the processing operations and actions, as well as invoice validation, from the human user.
Is this process safe, though? According to our speakers, it is. Electronic invoicing platforms can not only make sure that invoices are fiscally and juridically compliant, but also that they are securely sent, with respect to data protection legislation. Thus, access to an electronic invoice is far more restricted, compared to classical invoices!
Furthermore, the process doesn’t stop at issuing these invoices, but also continues over 10 years of archiving, as required by law – yet another compliance issue that can be easily solved by e-invoicing.
The Next Step
The reunion also presented solutions for the most pressing digitalization problems, from standardization and automation processes, to innovative services such as D.Tax, a Deloitte instrument that automates the issuing and submission of VAT declarations such as D394 and D300.
Together, the invoice control automation platform DocXchange and D.Tax can automate a large part of the financial and accounting processes and can save valuable time, especially relevant in the context of today’s labor shortage.
Finally, the representatives of the two companies have shown to be optimistic regarding the adoption of electronic invoicing, noting that, although some leaders can be reluctant to the process, the road ahead is clear.