How to manage your invoices?

The billing of a business is an important process that must be managed carefully. It can be done manually or be automated. Compta-Facile answers here the question “how to manage your invoices?” » And presents the different possibilities available to companies in this area:

Summary hide

Manage invoices with a paper biller

Manage invoices on a spreadsheet or word processor

Manage invoices using invoicing software

  1. The paper biller
  2. The invoice on spreadsheet or word processing
  3. Billing from software

Manage invoices with a paper biller

The legislation does not impose the use of software to manage the invoicing of a company. It is possible to manage invoices simply, on a biller . The biller is a notebook with pre-printed invoices . All documents are pre-numbered and contain certain mandatory information. The company must generally provide itself the elements which make it possible to identify it (name or corporate name, address or registered office, VAT identification number) as well as the information which relates to its customer and the object of the sale (designation, price, quantity, etc.).

This method of managing invoices is increasingly rare in practice. It has many drawbacks and in particular generates risks of errors in calculation, forgetting of mandatory information or even forgetting invoicing.

The paper biller is suitable for companies that have a very low volume of invoices (one invoice per month, for example).

Manage invoices on a spreadsheet or word processor

It is possible to computerize and automate to some extent the billing management process by opting for spreadsheets or word processors . The company then establishes a personalized model which it will use for each of its invoices. This report will include all the mandatory information and the company will only have to indicate therein the information relating to its customer, as well as that relating to the goods sold or the service rendered (wording, quantity, unit price excluding taxes, etc.).

This solution is also risky but on other levels than paper invoicing. It promotes the risk of the appearance of duplicates (several invoices having the same number) and the insertion of incorrect or inaccurate information which may be penalized by law. In addition, confusing mixtures can be made. In this management mode, the company may be tempted to modify its invoices afterwards, that is to say after their issue, which is strictly prohibited .

Billing on board or word processing is generally recommended for companies that issue few invoices (10 to 15 invoices per month, for example).

Manage invoices using invoicing software

Finally, the last option for managing invoices is to use billing software. It is an IT solution that fully automates the billing management process and greatly simplifies it: a quote turns into a purchase order, which turns back into a delivery slip and then an invoice. The software is more or less complete depending on the range chosen and any additional modules that may be purchased. The entry-level offer only allows you to manage invoicing (quotes and invoices in general) while the most complete offers allow you to monitor debt collection, manage outstanding payments, generate reminders automatically and also ” Edit dashboards, useful for managing the company.

The advantages provided by such a solution are multiple : saving time, reducing the risk of errors (forgetting mandatory information , errors in calculations, etc.), centralizing information within a single database, compliance with the provisions in regarding invoices numbering (numbers attributed in a continuous chronological sequence), ranking centralized and simplified, etc. Very few disadvantages must be raised except for the sometimes expensive cost and the importance of the configuration (which must be carried out correctly otherwise the company will encounter many problems).

Using software to invoice (online or installed on a machine) is recommended for companies that are subject to invoicing obligations and whose volume of documents to be processed is quite large . This method can however be used regardless of the number of invoices published.

 

Leave a Comment