Invoicing: Complex bookkeeping & accounting explained simply

Invoicing is the process by which a on account into the form prescribed by law. What do you have to consider?

Definition: What exactly is invoicing?

A lot has already been said about the invoicing. However, mistakes happen when it comes to this issue. This often depends on the lack of knowledge of the parties involved.

For example, the Term Invoicing equated with the term “accounting”. This is not wrong, but it falls a little short. Invoicing is the process by which an invoice is brought into the form required by law. The invoicing is the process, a customers send an invoice, usually detailing the products or services supplied or received and the price.

The most important help on billing

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Invoicing is traditionally performed by an external payment service provider or by an employee's department and is typically linked to the customer's accounts payable department. Companies use the invoicing to their expenditure to track and invoice customers draw up.

However, with the advent of cloud computing, the Significance from digital systems to. Cloud accounting systems are playing an increasing role in companies as they record income, manage expenses and provide information to stakeholders. They also enable automated billing and troubleshooting, which can help streamline processes and reduce costs.

Minimum requirements for accounting

It is important to note all the data on the invoice that is mandatory. These minimum requirements are:

• The tax number of the accountant
• The bank connection
• Name and address of both the creator and the recipient of the invoice
• A list of all delivered goods or services carried out at the net price
• The tax rate used for the invoice
• The gross amount
• The date of the invoice creation
• The agreed terms of payment
• A logical (continuous and unique) invoice number.

Pre-and post-invoicing: What is to be recommended?

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In the literature, the terms “pre-invoicing” and “post-invoicing” are often encountered. In e-commerce, for example, “pre-billing” is at the Agenda.

This describes the process in which the invoice is submitted before the actual processing of the customer order. A Customer ordered ten pairs of shoes, for example.

pre-billing

At the pre-invoicing the invoice is first written, only afterwards the shop employee packs the package and sends it on the trip. It is exactly the opposite of the invoicing.

In the case of standard orders, pre-invoicing is recommended because it is a kind of instruction for the subsequent processing of the order. It specifies who gets what is needed and thus simplifies the execution.

retrospective invoice

However, if an order is a tailor-made service or if it requires several work steps which are not (at least partially) standardized, then the invoicing is advisable in order to be able to record and calculate all the services performed.

Subsequent invoicing therefore requires the work steps to be logged: What was done? How long do the individual steps lasted? What materials were used?

Special software for billing: Yes or no?

Most companies now rely on software solutions to create invoices. The case that an empty Office document serves as the basis for invoicing and is then individually described has become an absolute exception.

The use of specialized software is advisable because it works with masks where the legal requirements are already filled out or automatically queried (eg addresses).

In addition, the work of invoicing, for example, with a program like Haufe Lexoffice from any computer Welt off is possible if only an internet connection is available. I can say that from my own experience: an automated one Online-Accounting software is a helpful companion in everyday work, which saves an infinite amount of time, especially in small and medium-sized companies.

Sample calculations simplify the workflow

In addition, it is possible to create different sample calculations relatively easily: shops usually have only to exchange address, product name and price, but can use the same invoice again and again.

High-quality software solutions make it so easy to "move the data back and forth" very easily.

Software for billing: You have to pay attention to this

Within the selection When choosing the right program, however, two points are of particular importance: First of all, it should be possible to personalize it. This means what was said before:

It must be possible to create and save certain sample invoices without any problems. It is also important that such a softwareSolution works intuitively. This means that the Employees they can be learned as they are used, eliminating the need for (long and costly) training processes.

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