business digitization

Invoices and Invoicing

• Invoices: Those documents that reflect the value and data of a commercial transaction.

• Invoicing: A set of invoices that encompasses all sales of goods or services of a company. If we look at invoicing from a tax point of view, this is the sum of the amounts, not including taxes, that appear in the invoices collected or issued by a company or self-employed person during a certain period of time. Normally, most companies take annual invoicing as a reference to make comparisons from one period to another.

Importance of a Company's Invoicing Process

• It helps to know the level of liquidity your business has and what your star products or services are, according to their sales volume.

• It helps you make strategic decisions about your company, evaluate your business, and study what investment possibilities you have.

• Fiscally, the State will be able to verify where your income comes from, so you will be taxed correctly and avoid future Treasury penalties.

Legal Invoicing Requirements

• All operations carried out during the development of a professional activity must be recorded by means of an invoice issued and delivered to the client.

• A copy of these invoices must be kept.

• Additionally, you will have to save invoices received from suppliers or other business owners.

• Have an accounting ledger or invoicing program that records all transactions.

Tasks of the Invoicing Area of ​​a Company

• Issue and receive invoices, as well as manage and file them correctly. As we have mentioned, a company's invoicing must be properly filed and have copies of all transactions carried out.

• Be up to date with the company's accounting, sales and expenses and maintain an updated record, in addition to organizing and presenting the annual accounts. Legal documents related to invoicing must also be efficiently saved and preserved.

• Charge customers.

• Pay suppliers and employees.

• Settle taxes on the corresponding dates. A good administrator has to be up to date and anticipate when taxes are collected in order to have that money.

• Stock control, through direct communication with the logistics area or, in the case of a small company or self-employed, the same person who performs the invoicing. It is very important that the person in charge of invoicing can check the status of the products, if it is a company that sells material goods.

• Preparation of reports related to invoicing, whether quarterly, semiannual or annual. This way you can easily and quickly see the growth and opportunities of the business or analyze where it is failing.

• Manage other procedures, such as subsidies, aid, permits, etc.

Features of a Invoicing Application

• Creation of invoices and estimates online. Invoicing apps allow users to create personalized invoices with detailed information, such as the customer's name, type of service or product, price, and due date.

• Payment tracking. They allow users to track payments received and not received. Some apps also offer the option to send automatic payment reminders.

• Expense management. These apps also allow users to record and track company expenses.

• Consult and manage your client and supplier portfolio with your mobile phone wherever you are.

• Cloud storage. Thanks to these apps it is very easy to save estimates and invoices, modify them and send them by email.

• Integration with bank accounts. Some invoicing apps allow users to connect their bank accounts for better financial management.

• Generation of financial reports. Another very useful feature is the ability to make detailed financial reports, such as the profit and loss statement and the balance sheet of the business.

• Inventory management. Some invoicing apps allow users to manage their inventories and track sales.

Benefits

• Time saving. Invoicing apps allow freelancers and SMEs to quickly generate invoices and send them via email or text message instantly. This saves time and allows them to focus on their main work.

• Efficient financial management. Invoicing apps allow users to track payments and expenses efficiently, making financial management easier.

• Accessibility. Invoicing applications are accessible from anywhere with an internet connection, allowing users to generate and send invoices from anywhere without having to be in front of the computer.

• Real time update. Invoicing, due dates, collections or payments data are updated in real time. In this way, any employee who accesses the app can generate or edit an invoice and the rest of the team will see it updated instantly and will be able to work synchronously.

• Compliance with tax obligations. Invoicing apps can help freelancers and SMEs meet their tax obligations by allowing them to record and track their income and expenses efficiently.

• Professionalism. The use of an invoicing application can help self-employed workers and SMEs improve their image and professionalism with their clients, since invoices are generated automatically and look more professional.

Whether you are self-employed, an SME or a large company, at U2-LAB™ we help you with everything you need, at all times, from the beginning of the project to its completion and beyond, so that you have peace of mind and can dedicate yourself to what really matters: growing your business/company and offering your clients services of the highest quality, effective and efficient.