Fairfax Talks Mexico’s Invoice Payments Market
While the U.S. continues to struggle with paper invoices in accounts receivable (AR) and paper checks in accounts payable (AP), its neighbor to the south has emerged as the world leader in eInvoicing adoption.
Mexico’s eInvoicing requirements began back in 2004, when its tax authority, the SAT, first developed its eInvoicing legal framework. Since then, the mandate has been expanded, and today, all invoices, including those in B2B transactions, must be electronic.
While the requirement aims to combat tax evasion and fraud, eInvoicing can also be greatly beneficial to AR departments that are able to more efficiently digitize transaction data for reporting, analytics and tracking purposes.
Yet eInvoicing and its related AR efficiencies don’t necessarily result in gained efficiencies on the payment and AP side. Indeed, traditionally, the invoice acceptance and payment processes have been disparate in AP departments, said Fairfax Software CEO and President Steve Chahal in a recent interview with PYMNTS.