Running a new business requires a lot of preparation, especially in the financial section. Every new business need accounting software to streamline and automate their financial process. There are many things that can be done with accounting software and are very much needed by businesses such as managing cash flow, tracking income and expenses, insights into the financial health, and generating professional invoices. This time SMEBRO will give you important information about accounting software that can take care of all things related to invoice management for your business.
What is the purpose of an invoice?
An invoice is a document given to a customer by a seller or service provider that states the cost of services or products, product or service requirements, down payment, address, and due date for the payment. The point of the problem is, new business owners can have difficulty in crafting an invoice because there are many things to take care of in their business. If you create an invoice carelessly, no matter how good your products and services are, your company's image will be questioned.
Why do you need to create invoices systematically?
Professionalism can be demonstrated by how you handle invoices for clients. Some of these are benefits if your business can create invoices systematically:
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Essential data for bookkeeping
Invoices have essential data for maintaining bookkeeping records and will go into financial history. Each invoice has information about when the project, product, or service was started and how it will be executed. All amounts of money and times for payment are also on the invoice and can be used for tallying business expenses or net profit and margin.
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Legal protection
An invoice has all required details, approvals and signatures from both parties, and can be a legal binding agreement of the transaction. If there are false lawsuits, the invoice can be a protection and reliable record of the seller's right to payment.
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Inventory tracker
If your business has inventory and continues to need checks, then invoices can be one of the tools to track inventory and let you know when to restock or reproduce according to past sales. Although invoices are not the same as receipts, you can still estimate how much product comes out from a certain time plus the possible processing time until the shipment is complete.
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Business analysis
Records of invoices are key information for date of transaction, prices of products or services, processing time, etc. Any details will help you to research what products or services are frequently purchased, when is the peak buying period, and all of these things can direct you to marketing strategies.
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Confirming data for tax records
Small businesses need to comply with obligations and tax requirements, and invoices are key to the reporting process. The invoice data can be summarized business transactions because it will be collected for tax filings. Invoices and receipts will be confirmation data when you enlist on your tax fillings.
What is Pastel My Invoicing?
Pastel My Invoicing is one of the features of Sage Pastel Accounting that offers a range of financial assistance features that are suitable for small and medium-sized businesses. There are many features that your business can get that allows you to create automated invoices, manage inventory, track expenses, generate reports, and more. Pastel Accounting supports multiple locations and currencies, so you can access it for your business in Hong Kong, China, or any country and can record transactions in different currencies plus consolidate them in your currency.
What Is the Meaning of a Business Loan?
Don't worry about currency differences if you have a business in Hong Kong, because Pastel Accounting can consolidate your company transactions in your base currency plus the exchange rates you have set. This is very useful if you want to create a report for income statement with your base currency. You can also enable the multi-currency feature if your business is on a global scale and shipping worldwide.
When do you need to send invoices with Pastel My Invoicing?
After knowing how important invoices are for your business, it's crucial to understand when to send invoices. There are several standard practices when you need to send an invoice, such as when a customer requests a partial or full payment before the product or service is delivered. This method is necessary because it ensures the customer's commitment and avoids the possibility of customers suddenly canceling the project after the product or service is completed.
If the customer wants periodic payments or with the milestone method, the invoice will be created across several billing periods or adjusted according to the percentage of progress of the work done.
If you and the customer agree to make payments upon delivery, you can send invoices after the products have been delivered. This is the most common way for sellers to inform customers that the work is done and verify all the details before proceeding to payment.
There is a recurring invoice method where customers subscribe to buy your products or services, with you sending invoices consistently at fixed intervals according to the agreement, usually the period is weekly or monthly.
Conclusion
New businesses can be overwhelmed with all the things they need to prepare, and SMEBRO will help you make one thing easier in financial needs for creating and managing invoices. This software has been tested for quality and quality to track invoices, maintain cash flow, record payments, or anything related to invoicing solutions for business clients. Plus, the invoice feature for automatic billing is available in Pastel My Invoicing and is part of Sage Pastel accounting software.
Remember that invoice is the main need for business, because it can be the best possible image for your business, plus any mistake from bookkeeping can happen if you do not track your business progress by creating invoices. An alternative way to hurdle the problem of creating invoices from simple forms to automatic billing, immediately use Sage Pastel accounting software. So, sign up to us to be able to create an invoice for your Hong Kong business.
