How to issue invoices that get paid, fast.

How to issue invoices that get paid, fast.

Once your business has done the hard work delivering your products or services, it’s time to get paid. First, you’ll need to prepare your invoice to send to your customer or client and ensure it’s paid – without delay.

But with the different types of invoices and their varying purposes, the top priority is getting all invoices paid quickly.

Let’s find out more.

What is an invoice?

An invoice describes the services you provide or items you sell to a customer or client. It is a document that lists what payment is due from the customer and any Value-Added Tax (VAT) if it applies.

Tip: An invoice is crucial in bookkeeping and tax filing because it serves as legal documentary evidence of the goods sold or services provided.

So, why do you need to issue an invoice? Ultimately, it’s to let customers know how much money they owe and give them the terms to pay you. It’s also to:

  • – Easily track your sales transactions.
  • – Get paid faster.
  • – Help you keep accurate records for your bookkeeping.
  • – Make sure you stay compliant, e.g. VAT laws in UAE mean you must send an invoice.
  • – Ensure smoother tax filing when you need to do your returns at the end of the year.

Invoice types

Now you know why you’d send an invoice, let’s cover the different types of invoices:

Tax invoices

  • – They’re commonly used if you live somewhere that requires you to issue tax invoices.
  • – You’ll need to cover details, including the buyer’s name and address and their VAT number. Make sure you include your VAT number and rate and the VAT rate written in words and numbers.
  • – Don’t forget to include a label that says ‘Tax invoice’ when you send it to your client.

Simplified Invoice

  • – Simplified invoices contain minimal details of the purchase and don’t include the VAT amount.
  • – They’re mainly used for Business to Consumer (B2C) transactions.

Proforma Invoice

  • – These are usually estimated invoices sent to a buyer to request payment before delivering the goods or services.
  • – By sending your estimate in advance, buyers can agree to the quoted price before you get to work.

Debit/Credit Note

  • – Debit/credit notes are sent when there is an adjustment, cancellation, or change to an existing invoice.
  • – For example, you have already issued an invoice worth AED 500 for ten items. However, if the buyer returns two items, you will have to issue a credit note, which they can use towards a future product or service.

 

Tip: Never cancel or delete an invoice; instead, use debit/credit notes. It will help you keep track of your sales and streamline your accounting.

Paper or digital invoice?

When you’re faced with the option of sending an invoice electronically or manually, it’s best to think about what suits your business.

Typically, manual invoices will require more effort – you’ll need to fill them out each time.

Instead, suppose you decide on a digital invoice that’s generated by software or a programme. In that case, you can take the stress and repetition out of writing an invoice each time.

Xpence created an invoice generator to do the hard work for you.

Generate, track, chase, and report on your invoices in our easy-to-use smart software.

Automate your invoices with Xpence

Xpence lets you streamline your billing so that you can record, generate, and store e-invoices:

  • – Automated Invoicing: Issue invoices automatically. You must select the customer’s name and amount for the invoice you’re creating.
  • – Smart Tracking: Send your invoice and sit back – Xpence will follow up with your customer and even send you reminders and notifications to keep you updated.
  • – Easy Access: All invoices are stored on the cloud so that you can generate, modify, and send invoices anytime from anywhere.
  • – Customized invoices: Use multiple invoicing formats depending on your client without the need to create them individually each time.
  • – Secure payments: Get instant documentary proof of your work, which can help you get paid faster using various payment methods and more securely.

Choosing Xpence invoicing software gives you a one-stop-shop solution for multiple invoicing tasks.

Download the App and sign up Now to get your hands on experiencing the award-winning expenses management and invoicing platform.

Grow your business with an expense management platform

Expense reconciliation is never glamorous, and more times than not, this task becomes cumbersome and expensive as businesses grow.     

Well, the nightmare of reconciliation has been greatly reduced with the introduction of an expense management platform. This can help businesses optimise spending, reduce costs, and improve the business’s bottom line.   

What is an expense management platform?

At its core, an expense management platform streamlines and automates the entire process of tracking, approving, and reimbursing employee expenses. It helps managers make more informed decisions about where the company’s money goes, what gets approved, and why certain expenses are made, without sifting through piles of paper receipts.   

Why use an expense management platform?   

 Here are a few of the many benefits that businesses can enjoy when they use an expense management platform. 

  • Payment Cards. 

Payment cards are one of the most popular features of a modern expense management platform, which boasts control and transparency with employee spending.   

Business owners can easily issue payment cards to their employees for a variety of business expenses, such as SaaS tools, client meetings, transportation, travel costs, etc.

  • Automated Bookkeeping   

It helps minimise errors that come from manual bookkeeping, ensuring that accounts are always up to date. Some of the tasks that automated bookkeeping takes care of are:

  1. The ability to record transaction data  
  2. Sort the transactions into relevant spend categories  
  3. Help collect recurring vendor and client payments.

 

  •  Billing  

Business owners are always looking for ways to be more efficient and save time. In the past, this meant having numerous products performing separate tasks to serve one purpose – expense management. However, using an expense management platform with an embedded invoicing feature saves time and money, resulting in a more agile way of working. Business owners can now manage and track invoices, all in one place.

  • Teams   

Companies looking to streamline their expense management processes should consider using platforms that can be used as a team to promote trust and empower employees.  

With a modern expense management platform, business owners can:   

 💳 Issue physical and virtual expense cards.

👥 Add and manage team members. 

🔑 Apply controls and permissions tailored to each member’s role   

📷 Enable members to capture digital receipts for each transaction with personalized notes.

📄 Eliminate the need to do cumbersome expense reports.

All these features provide business owners with:

  • Better data for decision making  

With all expenses in one place, businesses can make data-driven decisions, based on the visibility of where money is spent, what it is spent on and why.  

  • Increased Visibility and Control   

You are able to see all employee transactions in real-time, eliminating the need to micro-manage. The increased visibility can ensure that employees comply with company expense guidelines.

  • Improved Approval Processes   

Businesses can automate individual approvals for different types of expenses. This helps remove the guesswork and manual work out of the standard expense approval process.

  • Empowered Employees

Empowering employees with freedom and flexibility through payment cards to spend on behalf of the company to get their work done, without having to go through bureaucratic approval processes, helps increase productivity, reduce overheads and boost trust.

What to look for in an expense management platform?

When considering an expense management platform for your business, there are a few key features you should look for:   

Payment Cards: The platform should allow you to instantly issue physical and virtual payment cards to your team, which are accepted globally in person and online.  

Flexibility: The platform should adapt to your business’s specific needs, whether you’re a small business with a few employees or a large enterprise with multiple departments and locations.   

Ease of Use: The platform should be easy to use for both managers and employees. It should be intuitive and have a user-friendly interface.   

Scalability: The platform should be able to grow with your business. As your business expands, the platform should be able to accommodate more users and transactions.   

Security: The platform should have robust security features to protect your data. It should also be compliant with industry-standard security protocols.   

Integrations: The platform should integrate with other business applications, such as the accounting platform, to streamline workflows.   

Customer Support: The platform should have responsive customer support in case you encounter any issues.   

Pricing: The platform should be affordable and offer a pricing model that fits your budget.   

Overall, an expense management platform is a powerful tool that can help your team focus on their growth and success. By automating tedious tasks, you are freeing time for your employees to work on more important things. In a codependent corporate structure, it is easy to see how satisfied employees lead to satisfied customers. And finally, happy finance teams mean a healthy cash flow for your company.