In this article, we will discuss a few of the invoicing mistakes that can be avoided while you use the accounting software. Even while using manual methods such as excel or word, there stand a high risk of errors and mistakes. The accounting software help to manage the entire invoice process and avoid the common mistakes that are usually made.
While using the automated invoice software, one can create customized invoices for the business and also include GST in the invoice and it gets calculate easily. Excluding the GST is one of the major mistakes as it has become a compulsion. To calculate the GST, it becomes necessary to determine the goods and services that include tax. This tax rate needs to be included for each of your services. This information gets saved in the accounting software and applies automatically to each generated bill. Whenever a new invoice is generated, you just need to select the correct type of GST and it will be automatically calculated.
No currency conversions
In the manual methods of working, it gets difficult to convert the currency. For instance, if your company is in one country and you make a deal with an outside company, it becomes difficult to convert the currency for transactions through the traditional methods. Of course, manual work is more likely to make mistakes and hence the accounting software is used to accept payments in different currencies and make the currency conversion simple and fast.
Late invoice generations
If you are the owner of a small business, you are more likely to have a long list of pending tasks and hence you avoid generating the invoices. Some businesses completely forget to generate invoices or send them to customers. But if your customers are paying you on time, you also need to send invoices on time. This becomes easy and automated with the help of GST software.
Using free tools
It is common to make the mistakes of using the existing and free templates available online instead of designing the custom invoice. The retailing software makes it easy to generate and design your custom invoice that is more preferred as it creates dedicated invoices. The custom invoice can use the branding, add a logo, add payment terms, offer multiple options, and add messages, offer incentives and much more.
No late payment fees
It is seen that a lot of business units don’t charge fees for late payments. It is so as they are afraid of losing their customers for asking the late payment charges. It is to be thought, who would like to have clients who constantly miss payments.
There are chances when an invoice is generated you might have already supplied the product to the client. If you deliver on time, you also deserve to be paid on time. It is normal to charge late fees for all the industries and you also need to be the same. With the help of personal finance software, you can keep the payment terms simple and can add a short sentence at the end describing the clients that they will be charged late fees if they don’t pay on time and it is normal.
With the help of retailing software, you can set specific payment terms for the business. It is important to display the terms on every invoice created. Once it is set, there is no need to add manually in future invoices.
No advanced payment options
When traditional methods are followed and you send invoices through excel or word, it is not possible to automatically add the advanced payment options such as credit-debit cards or net banking for the clients. Of course, it is possible to add links to show available payment options but adding data manually mostly leads to mistakes or errors in the links.
The personal finance software makes it easy to add up all the available payment options in the generated invoice. Once all the accounts are linked, you can select the template having all the payment links inserted automatically every time any invoice is generated.
Forgetting the unpaid payments
While using the manual methods, it is possible to forget to follow up on the past invoices. It is easy to forget when any software is not used to track the invoices. At this point, billing software comes to your rescue. With the help of accounting software, it becomes easy to follow up on late invoices or unpaid bills regularly.
The personal finance software also allows running a report that can easily help to explain the bills. The online tools help to decide the workflow process that can automatically send the payment reminders to the client when they forget to pay on time. It becomes easy to collect unpaid invoices.
In this post, we discussed a few invoicing mistakes that can be avoided with the help of accounting software. There are many more mistakes that are made by the businesses and that need to be avoided to increase the revenue and receive payments on time.
Guest article written by: Aftab Vasiwala is nurturing his future at Techimply as a writer for GST software and Salesforce automation software with good experience in various genres of the blog writing. He loves to write on the latest Software and technologies.