How Are Check Free Insights Using Free Invoice Generating Appby Evelyn Wilson App Marketing Head at Moon Invoice
Invoice templates generated by Microsoft Word or Excel can be useful. After all, they aren’t anything more than a one-page sheet of paper that contains some numbers and descriptions. However, an invoice encompasses much more than that. If you aren’t aware of the importance of invoices, then this topic is a must-read for you. Apart from that, you should also know that using an online software platform or an app is a much better option compared to MS Word or Excel templates. Continue reading to gain more insights.
Invoices are nothing more than a request for payment. It acts as a list of all the goods and services that you supplied. It also showcases the amount that the client owes in return. Invoices also act as tax documents. You have to preserve copies of the invoices to show how much revenue you earned and the sales tax that you were able to collect for the government.
Types of invoices
Invoices can be of different types and each has its own name. Here are some of the most common ones.
Sales invoice: When you send an invoice, it represents sales. Similarly, if you are a recipient, then it’s a purchase invoice.
Interim invoice: If you need progressive payments while handling a massive piece of work, then you could send an interim invoice. You have to issue such bills every month and charge for the work you did during that period.
Past due invoice: When a client doesn’t pay for the goods received or services rendered, you will resend the invoice with an overdue stamp pasted on it.
Final invoice: It is the last in the series of interim invoices. Final invoices signal that you completed the work and that you won’t send any other invoices.
Pro forma invoice: Such an invoice shows items and associated costs. However, they aren’t a legal record of a sale. You send a pro forma bill as a price quotation to help clients identify the value of the items that you will deliver.
Recurring invoice: When you charge your customer the same amount every time, you can send recurring invoices. They are excellent for leases and subscriptions.
Credit note or memo: Credit notes reverse a charge from a previous invoice. You will issue them when the customer returns the goods or if you overcharge a client accidentally.
Commercial invoice: The prices on pro forma invoices can change any time but, on the other hand, commercial invoices have legal binding. Once you issue one such invoice, you can’t change the price until the bill passes its expiry date.
Things to put in an invoice
The invoices that you send through an invoice generating app have to identify the buyer and seller, the goods and services exchanged, and the costs of the items. Invoices should also contain the date of issue, the number or code that distinguishes it from all other bills.
Payments against invoices
Theoretically, you receive a payment from an invoice when you say that it’s due. Then again, customers will take more time to pay if you don’t mention it. After all, your pockets may get parched if you have to wait too long. As already mentioned earlier, this topic is all about invoicing insights. The best ways to reduce cash droughts using a billing generator app are as follows;
Decrease the time allotted to customers in which they have to pay.
Request your customers to agree to the payment terms before you supply anything.
Once you finish your task, you must send the invoice immediately. You shouldn’t wait for the month to end.
Ensure that you recognize the invoices for which you received payment and the pending ones. You must also follow up overdue accounts immediately.
About invoice accounting
You will receive payments from most of the invoices that you send via the invoice generating app. However, you won’t get any money from at least a few of them. No matter what happens, you have to enter credits and debits into your business accounts. An accountant or a bookkeeper can help you with it. Otherwise, you can resort to a mobile app or a computer software program to enter the values automatically.
Invoice reconciliation tells you about the invoices for which you received money as well as the ones for which you didn’t. You can do it by checking bank deposits made by customers through payments. Don’t forget to match those payments against specific invoices. Once a customer settles an invoice by sending you the money, you can move it from your list. A billing generator app makes this task easier through its multi-service platform. Sometimes, unpaid invoices can go past the due date. In such a situation, you should follow up with the customer to chase the payment. Invoice reconciliation can be quite disturbing, but you can automate the process with an accounting software program or a mobile app.
Difference between invoicing and accounts receivable
Indeed, both invoicing and accounts receivable is the same thing. They involve keeping track of the money that you should receive. Some business owners consider invoicing is as simple as sending bills, but it incorporates much more. The process begins when you agree to the payment terms with the customer. It finishes once you receive the payment. If you go through this topic thoroughly, then you will understand that there are several steps to follow on the way.
Created on Jan 31st 2020 05:09. Viewed 297 times.