What is an Invoice ????

What is E-invoicing & How it is different from traditional invoice system

Previously, we had studied about invoice system thoroughly. We discussed that what actually is an invoice system??? , we also discussed that what things are mandatory to be included in an invoice, and various other interesting information regarding it.

Today we are going to discuss E-invoicing & how it is different from traditional invoice system.

Let us discuss first that what actually is an invoice system???
Actually, an invoice system is a system which tells us about a particular transaction between a purchaser and buyer by generating a bill or invoice.
          Where an invoice is actually a bill which consists of various mandatory information like name& address of buyer as well as purchaser, their contact details, tax details, terms & conditions etc.

Now let me tell you about E-invoice system

E-invoicing means electronic invoicing which enables us to exchange of invoices in between a seller & purchaser in a typically integrated format.

Electronic invoice system enables us to send structured invoice data or information in XML or EDI (Electronic data exchange) formats. It also aims to reduce not only paperwork but also manual work.

Take a look at e-invoice formats:

·         Sequential invoice number

·         Invoice date or its date of creation

·         Name & address of buyer

·         Name & address of vendor

·         VAT details

·         Date when goods are supplied

·         Quantity & type of product

·         Currency

·         Unit price

·         Any sort of discounts

·         When payments are made

·         SEPA number

·         SWIFT code

Now let us talk about traditional invoice

Traditional invoicing is that particular type of invoicing that makes use of extensive paperwork & manual work in order to create invoices or bills. The format of traditional invoices is nearly same.  Traditional invoices are actually more prone errors due to very much manual work which further increased cost.
Paper invoices are actually labour intensive

Multiple sources increase the chances of errors

These paper-based invoices are hard to monitor.

Below is a diagram which shows the difference in processing of an E-invoice system & traditional invoice system.

Above figure shows processing steps of an invoice systems. And a red line eliminates those steps that we don’t need to add in E-invoicing. This elimination of various steps makes E-invoicing more efficient & appropriate.

Benefits of E-invoicing

Reduced costs

Increased accuracy

Improved cash management

Faster payments

Better productivity and so on.

This is all regarding E-invoice system & traditional invoice system. For more information please visit www.scopidea.com

5 invoicing mistakes that you need to avoid

Previously we had discussed a lot about invoice system & invoice.we also discuss various things which are mandatory to be there in an invoice and various such important and cognizant articles. Today we will discuss various stupid invoicing mistakes that you surely need to be avoided. Before discussing this interesting & important article, let us take a quick look at what actually is an invoice system. This quick revision makes us understand this topic effectively.

What is an invoice system??
It is a software application that enables us to produce invoices. Where an invoice is a commercial document that itemizes or tells us about the particular transaction between a buyer & a seller. This includes information about various information such as total quality of the project, contact details of the seller as well as purchase, Total amount, tax details and various other information.

·         Never forget your payment information
You never know that how clients will pay you. Sometimes the client does not know that what amount have to pay, where it have to pay and when it have to pay. You should have to mention this kind of information effectively and accurately. Such description of information regarding bill will avoid various issues such as non-payment of the amount, wrong payment of the amount. More than just keeping out you from any transaction related trouble, it further helps you to make a good record of successful invoices.

·         Always keeps records

Actually keeping records of various things is a good practice.Think of a scenario when you send an e-invoice to the client but yet he or she do not pay the requested amount to them and promises that they actually paid the amount but in real they do not. In that case, the seller, as well as purchaser, have to keep the records always.

·         Don’t forget to follow up

Follow up invoices is the best way to determine that whether the invoices are paid or not. There are two advantages of the following invoice, the first one is that it always reminds you to send bill or invoices and secondly it will eliminate those names on the lists that enables you to avoid confusion that who paid the amount & who do not.

·         Do not include surprises

Never mention or show various discount on the invoices. As it often confused various purchaser or client that what amount they actually have to pay.

·         Do not wait to send your invoices
Always send your invoices on time as this is a good practice & enables you to collect required amount on time.

This is all for today’s blog, for further more information please visit our website https://www.scopidea.com/blog/