E-invoicing and risk mitigation: Safeguarding data in a growing threat landscape
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29 Apr, 2024
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3 min read
There's no doubt that when comparing manual AR processes to AR automation and e-invoicing solutions, we have a clear winner - especially in streamlining operations and process optimisation. However, there's another significant reason businesses are urged to make the switch from manual: Information security.
Data safety and information security: Where manual falls short
Unfortunately, information security isn't always at the top of the priority list. There's a natural tendency to assume your business is under the radar and insusceptible to a data breach or attack. Think again (especially if you're without an e-invoicing solution). In fact, according to a new survey, 64% of respondents report a breach of their ERP systems in the past two years in an attempt to tap into sales data.
Unfortunately, relying solely on manual processes is the modern-day equivalent of leaving your wallet open and in public - ready for the taking. Hence, the critical shift towards e-invoicing solutions and the global regulatory environment ensuring that businesses follow suit, which was recently emphasised in the SARS VAT modernisation discussion paper. Despite the vast benefits beyond regulatory obligation, here's a look at how e-invoicing secures data and helps mitigate risks.
Risk mitigation with automated e-invoicing solutions
Protection against financial fraud
One of the primary purposes of e-invoicing and VAT modernisation is to combat financial fraud in an increasingly complex and evolving digital landscape. Paper and visual digital invoices (Word, Excel, or PDF files) are easy to imitate, making them an easy target for financial fraud. For example, bad actors could potentially create false PDF-based invoices that closely reflect the original invoice, except for containing alternative banking details, luring accountants (and customers) into traps. E-invoices, however, follow a structured format directly from the seller to the buyer's ERP, eliminating the possibility of interference in the process.
Audit Trails
With the right solution, invoices sent via e-invoicing, are automatically tracked throughout the entire collections process, significantly increasing transparency. Solutions with more comprehensive audit trail functionalities provide businesses with visibility into an invoice's delivery status, who accessed specific invoices, and when these actions occurred.
Encryption
To ensure the secure transmission of invoices, e-invoicing systems often utilise encryption techniques to safeguard financial data between parties. This mitigates any risk of unauthorised access during transmission, as well as reducing the risk of interception and data breaches.
Continuous compliance
Let's face it, keeping up with regulatory requirements and legislative changes can easily feel like a full-time job. Even then, relying solely on manual processes means that one error (whether intentional or not), can lead to significant exposure. E-invoicing solutions can help businesses comply with relevant data protection regulations and industry standards by incorporating built-in compliance features and functionalities.
Financial information symmetry (and safety) with System1A
Ready to make the switch, but not sure where to start? Fortunately, you're in the right place. At System1A, we don't believe you should ever have to choose between safety, convenience and customer relationships, especially when it comes to an integral part of your business, like getting paid. Experience Financial Information Symmetry integrated with account management tools, while simultaneously improving your information security standard and workflow in one fell swoop.
Request a demo here
Data safety and information security: Where manual falls short
Unfortunately, information security isn't always at the top of the priority list. There's a natural tendency to assume your business is under the radar and insusceptible to a data breach or attack. Think again (especially if you're without an e-invoicing solution). In fact, according to a new survey, 64% of respondents report a breach of their ERP systems in the past two years in an attempt to tap into sales data.
Unfortunately, relying solely on manual processes is the modern-day equivalent of leaving your wallet open and in public - ready for the taking. Hence, the critical shift towards e-invoicing solutions and the global regulatory environment ensuring that businesses follow suit, which was recently emphasised in the SARS VAT modernisation discussion paper. Despite the vast benefits beyond regulatory obligation, here's a look at how e-invoicing secures data and helps mitigate risks.
Risk mitigation with automated e-invoicing solutions
Protection against financial fraud
One of the primary purposes of e-invoicing and VAT modernisation is to combat financial fraud in an increasingly complex and evolving digital landscape. Paper and visual digital invoices (Word, Excel, or PDF files) are easy to imitate, making them an easy target for financial fraud. For example, bad actors could potentially create false PDF-based invoices that closely reflect the original invoice, except for containing alternative banking details, luring accountants (and customers) into traps. E-invoices, however, follow a structured format directly from the seller to the buyer's ERP, eliminating the possibility of interference in the process.
Audit Trails
With the right solution, invoices sent via e-invoicing, are automatically tracked throughout the entire collections process, significantly increasing transparency. Solutions with more comprehensive audit trail functionalities provide businesses with visibility into an invoice's delivery status, who accessed specific invoices, and when these actions occurred.
Encryption
To ensure the secure transmission of invoices, e-invoicing systems often utilise encryption techniques to safeguard financial data between parties. This mitigates any risk of unauthorised access during transmission, as well as reducing the risk of interception and data breaches.
Continuous compliance
Let's face it, keeping up with regulatory requirements and legislative changes can easily feel like a full-time job. Even then, relying solely on manual processes means that one error (whether intentional or not), can lead to significant exposure. E-invoicing solutions can help businesses comply with relevant data protection regulations and industry standards by incorporating built-in compliance features and functionalities.
Financial information symmetry (and safety) with System1A
Ready to make the switch, but not sure where to start? Fortunately, you're in the right place. At System1A, we don't believe you should ever have to choose between safety, convenience and customer relationships, especially when it comes to an integral part of your business, like getting paid. Experience Financial Information Symmetry integrated with account management tools, while simultaneously improving your information security standard and workflow in one fell swoop.
Request a demo here
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