Invoicing is key to a business’ account receivables and revenues. Invoices reflect based on the firm’s services or products sold. Data on the invoice corresponds to the business’ sales journals, customer account records, cash account journals, and account receivables balances, and others.
Technologically-savvy businesses use mobile invoice systems to streamline invoicing needs. Faster invoicing means quicker payments to the freelancer, service, or sales professional. Learn more about mobile invoicing at https://www.streetinvoice.com/.
Electronic vs. Manual Invoicing
Software used for invoicing usually require the initial entry of information about the business. This system automatically populates the information each time a new invoice is generated.
Manual invoicing systems require the bookkeeper or business owner to input necessary data to create the invoice. Whether the business sells products or services, the first step needed to set up an invoice system begins with what items to include on the invoice. The invoice should always include basic data such as contact telephone, fax, or email information.
Most businesses today prefer a fast, simple invoicing system. For professional services firms, consultants, and other self-employed providers, the ability to send an invoice when work is performed or goods are delivered is a must. The business wants to be paid now and hopes to avoid a 90-day big business invoice accounts payable processing period.
Choose cloud invoicing
The benefits of cloud-based invoicing are too great to ignore. They give you much more than greater efficiency. They also provide low total cost of ownership because your invoicing app becomes an operating cost rather than a capital expense.
The cost is significantly lower than purchasing an in-house invoicing app. There’s minimal implementation time — just hours or days instead of weeks or months to get it ready for business. A cloud-based system means there’s nothing to maintain or upgrade.
Invoice Number System
Invoices issued by the business should include an identifying number to reflect the chronological sales order or the number assigned to the customer by the business. Either way, the numbering system is a useful method to refer to a certain invoice in the future.
In the description center of the invoice, the business adds itemized details so that the customer understands what the invoice reflects. For instance, a business sends an invoice and states “service call” in the body of the invoice. This limited information is too general or vague for the business or customer to refer to later. If the description is more specific, such as “Tested and changed exhaust filters,” the customer and provider recall what work was performed.
When the business charges the client an hourly charge, this hourly rate should be included in the invoice body description. If the invoice refers to products purchased from the business by the customer, the price per unit and quantities purchased should be included. This information should correspond with the business’ sales journal.
Credit terms offered to the customer should be noted on the invoice. If the payment is due right away, the invoice should notation should state “Due upon receipt.” If the customer was offered 30 days to settle the invoice, this due date should appear on the invoice.
Simplified invoicing systems benefit many businesses. A secure mobile invoicing system can help businesses get paid sooner.