Issuing or receiving an invoice is a common process for any company. We leave these tips to improve your billing and make a good bill to your customers.
Few, even none, company is free to pass on any invoice for its services or products. However, the issuance of an invoice continues to generate some doubts, so we tell you everything you need to know to make a good billing to your customers.
If you want to improve the billing procedure, read on. Do not forget that all your expenses and income, whether in the personal or professional field, should always be controlled. For replacements of 80mm paper you can contact us: POSmart.
What is an invoice?
An invoice is a document that justifies the transaction of a service or product between a company and a consumer or between two companies. This is a tax receipt that must include information on the sale and is an essential requirement for the possible deduction of VAT. In addition, it can be used as proof in a commercial conflict. Therefore, it implies legal and fiscal validity.
Types of invoices
There are several types of invoices (summary invoice, proforma invoice … etc,), however, the most used are two:
- Ordinary invoice. It is the most used. The content of ordinary invoices is stipulated in the law. You must include the essential information about the operation. We explain the content that should be included later.
- Simplified invoice. This billing contains less information than ordinary, for example, does not require you to include customer data. This type can only be issued in specific cases (transactions with a value less than 400 dollars, amending invoices… etc).
Special attention should be given to the electronic invoice, for the benefits that entail, we tell you:
It is the evolution of the traditional paper invoice. It is done digitally and has the same validity as its paper counterpart. For the digital invoice to be valid, it must include the electronic signature. Public administrations are required to accept electronic invoices. In fact, the providers of a public administration can submit the invoice electronically.
Some benefits of electronic invoices are:
- Quick exchange through electronic platforms
- Storage facility
- Responsible with the environment
- Paper saving
- Automation Basic information about invoices
Who should make the invoice?
Following the billing regulations of the tax agency, some of the most common situations in which all companies are required to make invoices for the provision of their services are:
- When the customer is another company or freelancer
- If the client requires it
- When it comes to export it is exempt from VAT
- Operations with special taxes
- Invoice content
For the realisation of an invoice there are several free invoice templates as well as different invoice models. In addition, more and more intuitive billing programs are emerging. In the case of ordinary invoices, you must include the following information:
- Invoice number
- Expedition date. The date on which the operation is performed.
- Name and surname, issuer data, company name of the issuing company.
- Recipient data (optional on the simplified invoice)
- Information on the operation performed and total amount of the operation
- Tax rate (VAT and personal income tax)
- Final amount to pay
How is the invoice sent to your client?
The best time to issue your invoices is when the operation is performed or within the month following the transaction.
The entrepreneur, self-employed person or person in charge of the company that makes the sale of a good or a service is the one that must be in charge of the conservation of the invoice. The time required is 5 years.
Tips to make an invoice to your client
Finally, we leave you some tips for the realization of your invoices:
Check that the information is true. Both invoices issued and received. In the first you will avoid repeating the work and for those received it is your obligation that this information is correct.
- Use a record of invoices issued and received
- Establish a schedule for effective billing
- Use billing templates adapted to your activity
- Automate all the processes you can
- Keep your invoices tidy during the mandatory 5 years
Extra tips for making an efficient billing
The billing and payment collection process can become an absorbing and sometimes frustrating task. When your business is very prosperous and you are too busy working, it can be difficult to find the time needed to manage the company’s collection system. However, regardless of whether you are a professional or run a small company, it is essential to have an efficient billing system that ensures that your cash flow is positive and that your services are paid on time.
There are many methods you can use to make your collections and expedite this process. Time Manager gives you three tips to proactively manage the way you invoice and make your company’s collections:
Organise and specify
Always organise your invoices by numbers and dates. This may seem like obvious advice, but many people do not use this procedure correctly. Each invoice you create must have a unique number or code attached. A good organisational strategy will be to number your invoices depending on the customers you have.
When creating your invoice, it is very important that you be as specific as possible when describing your services and billable hours. The more specific this information, there will be less confusion with your customers and they will pay you more quickly.
There is no reason why, today, the billing of companies is done manually. Carrying out this process in the traditional way involves great disadvantages. For example, the number of human errors that arise from entering and accounting data by hand is numerous. Another major drawback is that the information is not updated permanently.
Don’t forget the customers
Billing is not simply the benefit of the immediate entry of money to a company. On many occasions, customers do not make payments for the services provided on time and we must pursue them to remind them to do so. If you do not remind your customers that they owe you money once the invoice expiration date has passed, the payment times could be extended indefinitely, negatively affecting your company. This, however, should not make you lose your mind. How can you respond assertively to such a situation?
Sometimes the invoices do not arrive directly to the inbox of the customers’ email. Unfortunately, these can be redirected to the spam folder. For this reason, it is recommended that you inform your customers of the dates on which their invoices will be sent. When you send them, accompany them with thanks to the customer for having acquired your services and with a kind reminder about the dates on which the invoices are due. In case the customer is late with a payment, be patient and communicate it in the most professional and polite way possible.
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