It is often difficult to get budgetary approval for an initiative that makes the process streamlined or lives of people easier. Same may not to be true though when it comes to tax and regulatory compliance.
What if I tell you that now under the same budget for e invoice phase 2 implementation, many issues being faced by construction and contracting sector since ages can be solved.
Milestones, advances, retention money and multiple invoices under a contract are some of the features that make revenue recognition process a bit complex in construction and contracting industry when compared to others.
ZATCA through the implementation of e invoicing is aiming to digitize the entire VAT value chain. It would be an irony if entities, especially the ones’ belonging to construction and contracting sector limit themselves only to what ZATCA is demanding and not seizing the opportunity to automate for the ease of business and better governance.
Below are some of the problems that these companies should look to resolve for once and all
Going through contracts again and again for raising the invoices
So, you have a module that can generate an invoice but knows nothing about the terms of the contract.
Result: going through the contract each time an invoice is required to be raised, and check in the system whether it has already been raised or not or if any is being missed out.
What if all these details like
can be entered within the system once the contract is singed and then at a click of a button invoice will be raised automatically when milestone is achieved.
Not only that, adjustment of advances, retention money etc. in the invoices can also be done without any manual input.
Weak internal approval process
Finding the right person for approving the invoice, manually sending the same, getting the approved one back if it does not get lost and at times sending an invoice without getting it approved are some of the problems executives often complain about.
Solution; set everything in the system
There may be different Project Managers for different contracts. What we need to have is a mechanism that ensure invoices automatically land in the workflow of the authorized Manager for approval.
No control over invoices by Projects/Sites
Invoices do mention the project code/site, but the system cannot generate a list of all invoices under the project or a contract. This leads to a situation where Project Manager keep their separate list of invoices and hence no single source of truth.
Locations/projects can also be easily set up in the system and tagged to a particular user, hence making the lives easier for many.
If you wish to see how all these problems can be resolved in a real life, schedule a live demo.