How Ready is Your Current AR Strategy for Global Tax Reforms?
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06 Oct, 2025
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6 min read
Some of you may recall that in the late 1990s, ERPs were as exciting as AI is today, promising groundbreaking efficiencies through greater integration across finance.
Since that boom, Accounts Receivable has faced such sweeping change. Only this time, regulators are setting the timelines. From the EU's e-invoicing mandates to SARS's expected VAT modernisation rollout, failing to automate Accounts Receivable this time won't just mean lagging behind competitors. It risks fines, penalties, and legal exposure.
Why Accounts Receivable (AR) Is Facing Its Biggest Regulatory Shift Yet
Finance teams are always chasing payments, correcting invoice errors, and preparing for audits. What's changed is the need to balance this with the pressure from tax authorities worldwide demanding greater accuracy, transparency, and real-time visibility.
For instance:
How can you tell if your AR function is ready for what's coming?
Three Red Flags Your AR Department May Not Be Ready for Global Tax Reforms
If this sounds like your accounts receivable department, you could be sitting on a ticking time bomb.
1. Your AR Teams Are Struggling With Late Payments
Late payments are a red flag as SARS is preparing for what seems to be a shift to real-time e-invoicing. Under such a shift, SARS would be able to see your invoice revenue as soon as you issue it, meaning they'll have a real-time view of your VAT liability. If collections are delayed, your business may end up funding the VAT out of its own reserves, straining liquidity.
By automating the AR function, 92% of companies report accelerating cash flow and reducing collection times by up to 67% compared with traditional methods.
2. Your Invoices Live in Spreadsheets, Emails, or Paper Files
Up until a few years ago, manual processing was primarily an efficiency issue. Slow, error-prone, but manageable. Today, under digital-first tax administration, those same mistakes don't just hurt productivity. They put your audit readiness and regulatory compliance at risk.
Warning signs include:
As tax authorities shift from periodic reporting to real-time oversight, invoices must now be accurate and accessible at any moment, not just at periodic intervals
Are you able to…
The Solution: Automating AR for Compliance and Control
The risks are real, but so is the path forward. Accounts Receivable doesn't need to be rebuilt from scratch. It needs to be reinforced with automation and e-invoicing that closes compliance gaps, brings clarity, and frees teams from manual admin.
Here's how we recommend approaching it:
1. Automate the Mundane, Focus on What Matters
Too many AR teams spend hours every day on repetitive, manual AR tasks. Automation tools free them to follow up with overdue clients, negotiate payment plans, and prevent disputes before they escalate.
2. Build an Audit-Ready, Real-Time Workflow
By connecting directly with your ERP or accounting system, modern AR platforms can:
3. Stay Ahead by Embedding Compliance into the Process
With SARS's VAT modernisation guidelines in motion, compliance has to be woven directly into your AR processes.
This is how we do it at System1A:
We Asked the Experts"How are evolving global regulations impacting your Accounts Receivable strategies, especially when it comes to automation and compliance?"
Belle Florendo Marketing Coordinator, RGV Direct Care
Healthcare finance now demands stricter alignment with both domestic and international standards, such as GDPR and HIPAA, which influence how we store, transmit, and reconcile sensitive information.
We focus on configuring our systems to generate reports that regulators could review without additional manual intervention. This shift not only protects against penalties but also strengthens patient trust in how financial transactions are managed. The result is an AR process that remains efficient while being fully aligned with evolving compliance obligations.
Maegan Damugo Marketing Coordinator, MacPherson's Medical Supply
We responded by embedding compliance logic directly into our AR automation workflows. Each invoice passes through validation layers that check format, tax codes, and jurisdictional rules before transmission.
The shift has reduced late payment disputes linked to regulatory nonconformance by more than 30 percent. More importantly, it has forced us to rethink automation as a compliance safeguard, not just an efficiency tool.
Taylor Humphries, CEO, Ranked
With stricter rules on data, payments, and cross-border transactions, automation has to be built with compliance in mind from day one. At Ranked, we approach AR by ensuring creators and partners get paid on time, regardless of geography. That means automating workflows that track tax requirements, consent, and reporting while maintaining transparency.
Nikita Sherbina, Co-Founder & CEO, AIScreen
Evolving global regulations have definitely changed how I shape my Accounts Receivable strategies. For me, it's about making sure every step is transparent, auditable, and aligned with shifting compliance standards across different regions.
There's Still Time to Transform Accounts Receivable on Your Own Terms
As VAT modernisation accelerates across Africa and beyond, we have yet to meet a CFO or Finance leader who has been able to afford the luxury of a full systems overhaul.
That's why our work focuses on integrating e-invoicing technology directly with the systems companies already use. While delivering faster payments, cleaner audit trails, and much less stress at month-end.
To us, compliance isn't the finish line for e-invoicing and e-reporting, they're revenue levers. We can help you prepare without disrupting your teams or your systems.
Since that boom, Accounts Receivable has faced such sweeping change. Only this time, regulators are setting the timelines. From the EU's e-invoicing mandates to SARS's expected VAT modernisation rollout, failing to automate Accounts Receivable this time won't just mean lagging behind competitors. It risks fines, penalties, and legal exposure.
Why Accounts Receivable (AR) Is Facing Its Biggest Regulatory Shift Yet
Finance teams are always chasing payments, correcting invoice errors, and preparing for audits. What's changed is the need to balance this with the pressure from tax authorities worldwide demanding greater accuracy, transparency, and real-time visibility.
For instance:
- Europe has mandated e-invoicing in several markets
- Latin American countries have implemented real-time or near-real-time e-invoicing and reporting systems requiring live validation by tax authorities
- SARS is expected to implement VAT modernisation requirements in the next 3-5 years.
How can you tell if your AR function is ready for what's coming?
Three Red Flags Your AR Department May Not Be Ready for Global Tax Reforms
If this sounds like your accounts receivable department, you could be sitting on a ticking time bomb.
1. Your AR Teams Are Struggling With Late Payments
Late payments are a red flag as SARS is preparing for what seems to be a shift to real-time e-invoicing. Under such a shift, SARS would be able to see your invoice revenue as soon as you issue it, meaning they'll have a real-time view of your VAT liability. If collections are delayed, your business may end up funding the VAT out of its own reserves, straining liquidity.
By automating the AR function, 92% of companies report accelerating cash flow and reducing collection times by up to 67% compared with traditional methods.
2. Your Invoices Live in Spreadsheets, Emails, or Paper Files
Up until a few years ago, manual processing was primarily an efficiency issue. Slow, error-prone, but manageable. Today, under digital-first tax administration, those same mistakes don't just hurt productivity. They put your audit readiness and regulatory compliance at risk.
Warning signs include:
- Invoice errors leading to disputes and late settlements
- Duplicate or missing entries causing gaps in your reporting
- Your AR teams are so busy fixing mistakes, there's no time for value-added tasks
As tax authorities shift from periodic reporting to real-time oversight, invoices must now be accurate and accessible at any moment, not just at periodic intervals
Are you able to…
- Pass an audit tomorrow without disrupting your workflows?
- Ensure 100% visibility across your receivables?
- Guarantee daily invoice accuracy, not just annual compliance?
The Solution: Automating AR for Compliance and Control
The risks are real, but so is the path forward. Accounts Receivable doesn't need to be rebuilt from scratch. It needs to be reinforced with automation and e-invoicing that closes compliance gaps, brings clarity, and frees teams from manual admin.
Here's how we recommend approaching it:
1. Automate the Mundane, Focus on What Matters
Too many AR teams spend hours every day on repetitive, manual AR tasks. Automation tools free them to follow up with overdue clients, negotiate payment plans, and prevent disputes before they escalate.
2. Build an Audit-Ready, Real-Time Workflow
By connecting directly with your ERP or accounting system, modern AR platforms can:
- Issue machine-readable e-invoices with the ability to comply with SARS, when the time comes
- Track client communications for a full payment history
- Centralise dispute resolution so nothing slips through the cracks
- Log and track payment commitments in real-time
- Give clients self-service access to their invoices, statements and supporting documentation
3. Stay Ahead by Embedding Compliance into the Process
With SARS's VAT modernisation guidelines in motion, compliance has to be woven directly into your AR processes.
This is how we do it at System1A:
- Create structured e-invoices
- Link every related document, such as credit notes, proof of delivery, and statements
- Allow clients to resolve invoice queries in-platform, reducing collection delays
- Enrich forecasts with behavioural payment data so that finance leaders can act early
We Asked the Experts"How are evolving global regulations impacting your Accounts Receivable strategies, especially when it comes to automation and compliance?"
Belle Florendo Marketing Coordinator, RGV Direct Care
Healthcare finance now demands stricter alignment with both domestic and international standards, such as GDPR and HIPAA, which influence how we store, transmit, and reconcile sensitive information.
We focus on configuring our systems to generate reports that regulators could review without additional manual intervention. This shift not only protects against penalties but also strengthens patient trust in how financial transactions are managed. The result is an AR process that remains efficient while being fully aligned with evolving compliance obligations.
Maegan Damugo Marketing Coordinator, MacPherson's Medical Supply
We responded by embedding compliance logic directly into our AR automation workflows. Each invoice passes through validation layers that check format, tax codes, and jurisdictional rules before transmission.
The shift has reduced late payment disputes linked to regulatory nonconformance by more than 30 percent. More importantly, it has forced us to rethink automation as a compliance safeguard, not just an efficiency tool.
Taylor Humphries, CEO, Ranked
With stricter rules on data, payments, and cross-border transactions, automation has to be built with compliance in mind from day one. At Ranked, we approach AR by ensuring creators and partners get paid on time, regardless of geography. That means automating workflows that track tax requirements, consent, and reporting while maintaining transparency.
Nikita Sherbina, Co-Founder & CEO, AIScreen
Evolving global regulations have definitely changed how I shape my Accounts Receivable strategies. For me, it's about making sure every step is transparent, auditable, and aligned with shifting compliance standards across different regions.
There's Still Time to Transform Accounts Receivable on Your Own Terms
As VAT modernisation accelerates across Africa and beyond, we have yet to meet a CFO or Finance leader who has been able to afford the luxury of a full systems overhaul.
That's why our work focuses on integrating e-invoicing technology directly with the systems companies already use. While delivering faster payments, cleaner audit trails, and much less stress at month-end.
To us, compliance isn't the finish line for e-invoicing and e-reporting, they're revenue levers. We can help you prepare without disrupting your teams or your systems.
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