Invoice management is one of the basic pillars on which a business is based. You do not have to be an accounting specialist to know that the exhaustive control of the processes of issuance, reception, management, collection and payment of invoices allows you to optimize the relationships of the company or the self-employed with clients and suppliers and in turn ensure your economic health of the activity.
Not only that. The control of invoicing also contributes to improving compliance with the many accounting and tax obligations that, as the owner of an economic activity, you have to face.
Therefore, it is convenient to create delivery notes with the main objectives of managing your invoices. Let's see the keys to achieve it:
Know the billing obligations
First of all, it is important that you know the basic rules of the Billing Regulations (Royal Decree 1619/2012, of November 30). This and your tax advice are your main resources to consult everything related to invoicing obligations, such as the delivery and sending of invoices , the basic content that they must include or the conservation time. Believe us when we tell you that billing is a task with innumerable implications for the overall management of the business.
The numbering of the invoices, strictly
If there is an obligation of great importance in the management of invoices, that is the numbering, a key aspect if you wonder how to invoice . All invoices have a number and, where appropriate, a serial number . The number of each invoice must be unique in the fiscal year, correlative and consistent with the date of issuance of the invoice. If this basic aspect is not clear to you, you are lost. Of course, as we will see later, the automation offered by technological solutions greatly facilitates the work of invoice numbering.
Create a routine for managing invoices
We know that business management requires time but if you issue and receive uncontrolled invoices, you run the risk that some will be left in the pipeline and if this happens, one of two: either you do not carry out the collection management, or you do not carry out the management of payment. Therefore, it is essential that you establish billing routines on specific days of the month. This way you will not forget to record the invoice for that table that you bought for the office and that you will later deduct as an expense.
The accounting books up to date
Do you think that with planning the payments and collections of invoices is all done? Error. While you do all this you have to manage the accounting books , the same ones that record your income and expenses, your invoices issued and received. The continuous management of these books is not a mere whim since they constitute the information base to face the presentation of quarterly and annual tax returns and to check the correlation between the two. And if you do a better online tax advice . This way you will ensure a job well done.
The benefits of technology in invoice management
We mentioned before the importance of automation in the control of invoices. And it is that billing has been undergoing a digitization process that occurs in parallel with the digitization of taxation. The digital transformation of business management is supported by technological solutions that provide savings, control and efficiency. In the specific case of the field of billing, the excel format has become obsolete. Online billing applications and software as well as ERPs have simplified management processes to the point that it is no longer a waste of time.
Do not forget that you have the obligation to keep the invoices for four years . The digitization of document management has erased from the business imaginary the offices full of dusty filing cabinets to which to turn when consulting an invoice or a tax inspection. With cloud technology you can access your invoices at the click of a button regardless of whether you are in your usual home or in a remote vacation spot. You only need an Internet connection.
Have the invaluable help of an advisor
You must be very clear that the management of invoices and accounting and tax management are closely related but differentiated areas. The information that these invoices spill is what your consultancy will use to file your taxes.
Tax management is a task that without the expert service of a consultancy can be uphill. And that's not the worst. Making a mistake can cost you a tax penalty . Therefore, do not hesitate. It combines the best solutions for managing your billing and managing your taxes. Customers of the Basic Autonomous Plan of the online consultancy already have a web application for billing and the support of their consultant to comply with their tax obligations.
Focus on unpaid bills
Delinquency is probably the main burden on the self-employed and the reason why many businesses end up closing. The Delinquency Law establishes a maximum period of X days for the collection of invoices and you, as the main interested party in meeting these deadlines, have to monitor and ensure compliance. Consider establishing surcharges for late payment of invoices. It is a possible solution to balance the balance between paid invoices and collected invoices.
In the same way that you penalize those who pay late, you must reward the opposite. Why not introduce discounts for prompt payment
If you are a freelancer and looking for a professional way to ask payment from your clients, then a free invoice generator can be your ultimate tool.
For both small businesses and freelancers who do not want to invest resources in invoicing bills, an invoice generator can be a useful tool for them.
You can also choose a professional layout for your invoice.
This online invoice tool offers attractive templates to choose from.
Here you can add the essential details of your business or company.
After adding the Invoice number, PO, Project date and Payment Due date, you can proceed to enter details regarding the project billing.
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As the world goes digital, invoice makers create scads of opportunity for small to large scale businesses to simplify the work process.
To stay at the top of the business market in this world of fierce competition is imperative for all business owners because they need to look for faster payment options so that they don't feel left out or lagging behind their competitors.
At present more and more organizations are turning to invoice apps because of its advantages over manual and paper billing.
Most of the small businesses typically do not have a team dedicated for finance to manage accounts payable.
Regardless you'll have the option to utilize the full usefulness of the product — making and sending solicitations with various receipt formats, modifying solicitations with your logo, including installment terms, sending solicitations with or without costs, sending installment updates, making gauges, setting up repeating solicitations, following costs, making reports, thus substantially more.
You can change the late installment update and even include a card to say thanks, a rebate or exceptional message on your solicitations.
