95% of finance teams still use manual spreadsheets to manage invoices, limiting business expansion, according to new research.
These spreadsheets are enhancing financial risk, creating audit challenges and limiting business scalability that is preventing growth into new markets.
The findings come from Basware’s Beyond the Checkbox: Compliance as Strategy Report 2025, conducted by independent research firm Financial Times Longitude, which surveyed 400 finance leaders around the world.
On top of this, over half (56%) of companies are unable to expand overseas due to missed invoicing or tax compliance deadlines, new data reveals.
Increasing financial regulatory demands combined with fragmented internal systems are creating a ‘compliance breaking point,’ preventing businesses from reaching their full global potential.
More than one-third (36%) of companies have incurred fines by submitting incorrect tax audits, highlighting how widespread tax compliance failures are and why businesses risk being held back on the global stage.
Basware’s analysis of 272 million invoices last year revealed that 57% still arrive as PDFs or paper documents rather than compliant e-invoicing formats. This represents $783 billion worth of non-compliant invoices flowing through global businesses. Despite mounting regulatory pressure and e-invoicing mandates, more than half of all business invoices remain stuck in formats that require manual processing, delay payments, and increase error rates.
These findings underline the growing complexity of global compliance and the urgent need for finance leaders to adopt modern, automated systems that can keep pace with constantly changing regulations. Without this shift, many organisations risk missing out on lucrative overseas opportunities due to inefficiencies and avoidable compliance errors.
Markus Hornburg, Head of Compliance at Basware, commented: “If you can’t be compliant, you can’t grow. Businesses are losing out on millions in potential revenue simply because their systems can’t keep up with global tax and invoicing demands. Most compliance challenges aren’t caused by misconduct, they stem from controllable technical issues, like manual invoices and unstructured PDFs.
“CFOs face growing risks, from fines to lost revenue and strained partner relationships. AI-driven automation, supported by strong invoice practices, gives finance teams the ability to process invoices accurately, streamline audits, and stay ahead of changing compliance requirements, turning compliance from a burden into a strategic advantage.”
While finance leaders clearly recognise the risks, many admit they lack the visibility and resources required to act effectively. The report found that 91% of CFOs believe limited visibility into compliance processes represents a major operational risk. Meanwhile, a third (32%) of organisations frequently breach financial compliance by submitting incorrect tax audits, revealing deep structural weaknesses in financial oversight.
One example of how automation has turned compliance into a competitive advantage is French-based industrial manufacturer LISI Group. The company faced challenges managing invoicing and tax compliance across multiple countries, with manual processes and fragmented systems causing invoice rejections, delayed payments, and heightened risk of fines.
To address these issues, LISI implemented Basware’s Invoice Lifecycle Management platform, standardizing invoice processing and embedding compliance into its finance operations. As a result, the company now enforces structured data quality upstream, preventing errors such as missing PO numbers or incorrect delivery details before they cascade downstream.
