A GUIDE TO INVOICES AND INVOICE MANAGEMENT
Invoice creation and invoice management is one aspect of business that most entrepreneurs find boring. However, financial documentations are what spells out goods and services offered to a client while also creating binding terms, especially if you want to get paid. For starters, the easiest way to get around this Herculean task is to adopt online invoicing easily gotten through paystubsnow.
We have also shown why many brick-and-mortar stores today adopt online invoicing. For e-commerce businesses, on the other hand, it’s no question. We understand not all business owners are familiar with e-invoicing and invoice management. This is why we’ve created this guide for invoices and invoice management.
What is invoice management?
An invoice is a business or financial document that tells what goods or services were provided to a client and how much they have to pay, whether or not they’ve paid. Creating an invoice is incredibly delicate work, requiring extreme attention to detail. The invoice management process involves creating and receiving invoices, extracting their information, validating and verifying information, approving payments, and finally archiving the invoice for future reference.
Details included in an invoice
- Business name/contact information: This includes your business name, contact address, phone number, email, and website. This information makes it easy for customers to reach you at any time of the day and from anywhere.
- Logo: A good business logo adds a professional touch to your invoice and improves client trust in your business.
- Contact information of client: Client details like name, contact address, email, phone number are very essential.
- Date created: This means the date that the invoice was created. It’s very essential for corroborating payment due dates.
- Invoice unique number: This is akin to the unique number on a payment receipt. The invoice unique number not only gives a more professional feel to your work but also serves to keep you more organized during invoice management. Online invoice generators like paystubsnow make this task automated and more efficient.
- Product description: This is where you include a detailed expression of the business deal or sale. Itemizing all products, goods, and services provided for your client, their cost, and the total amount to be paid. Any discount granted to the client is also included here.
- Payment due date: This means the date for which payment is due. Some businesses set their payment due date to 30 days from the date created.
- Miscellaneous Terms and remarks: This section briefly covers the terms and conditions of business relating to payment. It’s an invitation to get as creative as possible. Things like the early bird considerations/ discounts or penalties for late payment can be included here. You could also include any deposits to be paid or advance payments. Milestones that describe payment may also be added to this section. A simple ‘thanks for your patronage’ will do for a closing remark.
- Pay button: This doesn’t cover the brick and mortar stores still operating paper invoices. The pay button is a specialized feature of online invoices. This feature is created from a customer-centric standpoint as a means of diversifying payment options. A single click of this button quickly redirects the customer to the payment platform where payment options are chosen and terms/conditions of business are reviewed. customers are free to choose their preferred method of payment, like debit cards, wire transfers, or any other means that guarantees easy invoice management.
How to create an online invoice?
Online invoice generators like paystubsnow are used to create online invoices for free. They offer a wide array of invoice templates and simple tools to make invoice management enjoyable. Also, the user-friendly interface practically guides you through the free invoice creating process and you get your customized invoice delivered straight to your email within minutes.
The ultimate invoice management system
Invoice management is what most people know as invoice processing. It refers to all processes involved in tracking and paying supplier invoices right from invoice arrival to settlement (payment) as well as receiving payment from customers. The cyclical nature of the business world has made it so that no one can escape invoice management. People are either sending or receiving the invoice at every point in time which makes the knowledge of managing invoices imperative.
Many businesses perceive invoice management as a nightmare. And yes, having to sort/organize financial documents, do several data entries as well as maintain fluid communication in all instances can seem overwhelming. The pain of managing invoices can only be alleviated by setting up what we call ‘the ultimate invoice management system’.
Online invoice management is fast phasing off the manual invoice management, leading to automated or paperless invoice management. This new invoice pattern is courtesy of the proliferation of e-commerce and economic digitalization. It’s not going to serve us much to dwell on the disadvantages or limitations of paper invoicing like the financial, time, and energy consumption, but if you’re insistent, here is a related article on paystubsnow.com: 8 reasons online invoicing beats paper.
Strategies for the ultimate invoice management system
- Get organized: The first step to optimizing your invoice management is by sorting, grouping, classifying, and even numbering your invoices. The take out here is to achieve clarity with your invoices so that you know exactly what you have and how to treat them. Whether it’s making payments or sending out bills.
- Track your customers: This will enable you to get paid on time. Fluid communication is necessary to achieve this. Friendly reminders can also be sent to customers who are behind on their payments.
- Automate your process: Use online tools and software like paystubsnow to generate/organize invoices, set payment reminders, and automatically record your payments. Automation is the hallmark of managing invoices.
FAQS: Why is invoice management important?
Proper invoice management facilitates invoice payment which increases cash flow, saves time/money, and prevents errors with accounting/ financial documentation.
How do you process invoices?
Processing invoices involve; invoice reception, validation of authenticity, making payment, and archiving payment records for the company.