What is legal compliance?
Legal compliance refers to an organization’s adherence to all relevant laws, regulations, and industry standards that govern its operations. In the context of invoicing and finance, this means ensuring that every invoice and financial transaction meets local and global regulatory requirements, such as tax mandates and data retention rules.
Legal compliance helps organizations reduce risk, avoid penalties, and remain audit-ready by following mandated processes and formats for invoice creation, delivery, and archiving. With evolving regulations worldwide, maintaining legal compliance is essential for business continuity and operational success.
What are the main steps to being legal compliant?
The main steps to being legally compliant start with understanding the regulatory requirements for your industry and jurisdiction. Next, choose invoicing tools that support compliance, and customize invoice templates to include all mandatory fields, such as tax IDs and legal disclaimers. Automate processes where possible to reduce errors, and train your team regularly on compliance standards. Finally, monitor and audit your invoicing workflows to identify and address any gaps, ensuring your business remains up to date with evolving regulations and always audit-ready.
Why compliance should be a CFO priority
Invoice compliance isn’t just a tax or IT issue – it’s a CFO-level priority. With governments tightening regulations and increasing real-time reporting requirements, finance leaders face growing exposure to penalties, fraud, and inefficiencies.
Compliance impacts cash flow, audit readiness, data quality, and even ESG reporting. It spans AP, AR, procurement, IT, and legal. At Basware, we empower CFOs to proactively manage this complexity through a single, unified platform that ensures global compliance, optimizes finance operations, and reduces risk.
Learn more about how we support compliance across your finance operations ->