The Power of e-Invoicing to Fight Fraud
Italy Aims to Reduce Fraud through Required e-Invoicing
This week Vroozi announced the addition of e-invoicing to their procurement suite. E-invoicing is a powerful addition to an already robust document tracking system. The power of e-invoicing is making waves in Europe as the Italian government makes progress in requiring B2B companies to use e-invoicing for all B2B transactions.
Tax avoidance is a major issue in Italy, resulting in billions of dollars of lost tax revenue. The Italian Minister of Economic Affairs Pier Carlo Padoan recognizes e-invoicing as a powerful tool to manage and avoid tax evasion. Using technology to fight fraud has already been successful in Latin America and many European countries are looking to mirror their success.
Fraud in the Private Sector
Many companies are naive to the threat of fraud within the private sector. According to Kroll Global Fraud Report, 3 out of 4 of companies experienced a fraud incident in the past year. E-Invoicing and corresponding 3-way checks prevent fraud from ever occurring in the first place, minimizing the need to investigate and recover lost funds.
Errors do occur and may not be as intentional as fraud, but e-invoicing can protect from manual errors, overbilling, and duplicate invoices. Between errors and intentional fraudulent activity, companies must find a way to prevent and protect themselves.
Vroozi’s new Vroozi Invoice module is the answer to invoicing as a part the protection a procurement solution offers. Invoices are an important factor of 3-way checks against Purchase Orders and Goods Receipts. Vroozi provides the e-invoicing solution that governments rely on to protect and maintain billions of dollars of tax revenue.