In today’s global business landscape, international transactions are day-to-day occurrences. The growing complexity of managing disparate tax structures has made it more difficult for AP teams to manage invoices efficiently.
There is now a need for AP teams to capture and track taxes from various countries, provinces, states, and cities, which can quickly become overwhelming, especially for AP teams needing help keeping up with high variability and intricacy in their invoice processes and systems.
For this reason, DataServ has launched its International Tax Capture feature as part of our Accounts Payable Automation Solutions. This new feature captures, displays, and returns tax fields from various countries, giving AP teams better control and visibility over their tax liabilities.
Unlike other products that lump all taxes into the invoice’s subtotal or capture all taxes together as one field, DataServ’s approach captures each type of tax separately, as accountants and tax authorities require.
The Need for International Tax Capture
Companies today are operating in an increasingly globalized business landscape, where geographical boundaries are no longer significant barriers. As a result, companies are embracing a more global approach to their operations, and shared services have emerged as a highly valuable and necessary model. Centralized shared services offer numerous advantages, such as improved efficiency, cost savings, streamlined processes, and enhanced collaboration. As business dynamics continue to change, especially in AP with new technology and automation capabilities, centralized shared services become even more critical. This allows companies to adapt, harness new tools and technologies, and efficiently manage the payables process across multiple locations to drive operational excellence and enable strategic decision making.
AP teams are processing invoices and documents from more countries than ever. Because each country has its unique tax structure, accountants need to report this tax information as separate fields to record tax liabilities, support sales tax audits, and make accurate tax payments.
Other Account Payable automation solutions have attempted to address this challenge, but most lump all taxes into the invoice’s subtotal or capture all taxes together as one field. This approach does not provide the necessary granularity for AP departments. DataServ is making it easier and less manual than current processes, mapping it straight back to the ERP at the field level to record tax liabilities, support sales tax audits, and make accurate tax payments.
Our International Tax Capture feature captures, displays, and returns tax fields from various countries by default—no manual entry is required. It also removes judgement calls and the extra time it takes to perform unnecessary math before you can even key it. This means that our solution can handle any number of tax fields to satisfy each country’s own tax policy and structure, saving your team time on their entire invoice process.
How DataServ’s International Tax Capture Works
We designed our International Tax Capture feature to be global from the start. Our familiarity with multinational organizations allows us to build it knowing it’s utilized not just for one country, but can truly handle the information and necessities of any. Our tax capture system is highly adaptable, fluidly designed to capture the information you need.
DataServ’s International Tax Capture feature is designed to be flexible and adaptable, allowing it to capture and process taxes from any invoice, regardless of the format or structure. Unlike other OCR products that rely on templates to extract tax information, DataServ’s solution uses advanced algorithms and machine learning models to analyze each invoice and identify the tax fields automatically. This feature is not an alternative to specialized tax compliance/calculation software but rather works in conjunction with those products to provide the everyday tax capture, auditability and retention required.
Overall, this new feature provides a powerful solution for AP teams that need to manage complex and variable tax structures in their invoice process. The system can help businesses ensure compliance, improve efficiency, and reduce the risk of errors and penalties by providing granular tax capture and detailed tracking capabilities.
Benefits of International Tax Capture for Global Clients
DataServ’s International Tax Capture is part of a set of options we offer for global clients, which includes a Global Approval Matrix and language translation right in the user interface. Our solution benefits any client with international taxes on their AP invoices and requires that each type of tax be captured and tracked individually.
This approach provides several benefits to AP teams, including higher accuracy, improved efficiency, and increased flexibility. By not relying on templates, DataServ’s International Tax Capture feature can handle a wide variety of tax structures and configurations, allowing it to capture all taxes in a granular manner. This means that AP teams can track each type of tax individually, ensuring that they are properly recorded and tracked.
In addition, the system provides better control and visibility over tax liabilities, allowing AP teams to ensure that all taxes are paid accurately and on time. This is particularly important for global businesses operating in multiple jurisdictions, as tax laws and regulations can vary significantly from country to country.
Another key benefit of DataServ’s International Tax Capture feature is its ability to support sales tax audits. By providing a comprehensive and detailed record of all taxes paid and collected, the system makes it easier for businesses to comply with audit requests and demonstrate their tax compliance.
DataServ’s International Tax Capture feature addresses the increasing complexity of global business taxation and its challenges for AP teams and global financial transactions. Our solution provides a way to capture and track taxes from various countries, ensuring accurate tax payments and supporting sales tax audits without the need for manual data entry.
We invite you to learn more about DataServ’s AP and invoice processing automation solutions to streamline your Accounts Payable processes, improve accuracy, and reduce costs. With DataServ, you can rest assured that your AP department is equipped with the AP automation tools it needs to succeed in today’s global business environment.