The top 3 challenges international SMEs face with sales invoicing

Challenge 2: Ever-evolving e-invoicing mandate landscape

Beyond the internal hurdles previously discussed, the landscape of international regulations, with its country-specific nuances, introduces additional complexity. An increasing number of European nations are adopting or considering the implementation of e-invoicing mandates. These mandates allow authorities to demand that businesses have the capability to issue, receive, and/or report invoices electronically and following a strict set of requirements.

Typical characteristics of these mandates include:

• A standardized structured data format for invoices.
• The requirement to process invoices directly through the tax authority's system or to report these invoices in real-time (or near real-time).
• A phased rollout, targeting larger corporations first and smaller businesses in later waves. Companies operating in countries expected to introduce an e-invoicing mandate in the next few years, such as Germany, Poland, Spain, Belgium, and France, need to begin preparations well in advance.

Keeping up with the diverse e-invoicing mandates across countries requires a consistent effort to monitor these regulations and adapt to changes as they arise.

Additionally, while the European Union is working towards the standardization of e-invoicing and e-reporting through the VAT in Digital Age (ViDA) regulatory package, full implementation is not expected until between 2030 and 2032. Up until then, practices and standards for e-invoicing and e-reporting will vary across EU member states.

Challenge 3: Missing a unified yet practical approach

The prevailing approach to sales invoicing—"every country for itself"—is increasingly becoming costly, non-transparent, and challenging to manage for many companies. In extreme cases, this style can even lead to severe penalties or even disrupt business operations if customers start rejecting invoices that don't comply with specific mandates.

Historically, companies have opted for one of two strategies to address this issue:

1. Implementing the same ERP system across all countries.
2. Adopting country-specific standalone solutions.

The centralized strategy, while uniform, comes with its own set of drawbacks, such as high expenses, lengthy ERP implementation projects, a significant risk of project failure, limited flexibility, and difficulties in addressing specific needs like e-invoicing or banking connectivity.

On the other hand, the decentralized approach, with solutions tailored to each country, leads to a confusing mix of systems and partners, delayed reporting, and a general lack of oversight across operations.​

The solution: a unified invoice-to-cash (I2C) process

Consider a company operating in three different countries, each with its unique approach to handling invoices:

• In Country 1, they use an enterprise resource planning (ERP) system, coupled with a local online invoicing service and a banking connection provider.
• In Country 2, the invoicing process is entirely outsourced to a local accounting firm, which then reports monthly to the company's head office.
• In Country 3, a local employee manually manages all tasks using a local accounting and invoicing software, primarily sending invoices to customers via email.

By adopting the Heeros Sales Invoicing service, the company can standardize its invoice-to-cash processes across all these diverse environments, facilitating e-invoicing in every country while minimizing manual labor. Although accounting tasks continue to be managed locally, the integration with Heeros Sales Invoicing service streamlines these processes.

This approach not only ensures complete transparency over the company's invoicing and accounts receivable in all countries but also supports flexible and compliant e-invoicing at an affordable cost. Moreover, it simplifies the mix of suppliers and systems, enhancing operational efficiency by standardizing financial management practices across the organization.