The invoicing business is growing at 20% per year and there are about $2 trillion in financeable highly secure payables globally. For small start-ups and well-established corporations, invoicing templates are essential to display professionalism and fulfill their business accounts requirements. In fact, there are roughly 16 billion invoices processed each year and they deliver an annual saving of $260 billion in Europe alone, according to a recent survey by Deutsche Bank. With that in mind, here are the advantages of using an online invoice template for businesses of all sizes and industries.
Bookkeeping And Tax Recording
An invoice offers a written verification of the payment terms and helps businesses speed up the time it takes to get paid based on the services they provide. Records of invoices provide documentation that summarizes daily records of a business’s financial history and business transactions. This helps business owners and bookkeepers to track all the revenue coming in and ensure accurate tax filings each year. Furthermore, by having a reliable invoice template, businesses can save an enormous amount of time instead of making invoices from scratch. Its ability to complete invoicing tasks quickly and efficiently enables clients to receive the invoice on time and make a payment.
For businesses that keep inventory, an Excel invoice template can be helpful in monitoring current stocks and in predicting how much is needed based on past sales. This makes it possible to track the number of goods sold, who bought them, and when they were bought. By making the switch to an online invoicing template, businesses can manage inventory at the touch of a button and free themselves from hours spent filing at the end of a busy week. These records can also help in determining peak hours or days when products are in demand so businesses can strategies accordingly based on the data and trends to improve the bottom line of their business. Moreover, efficient invoice generation leads to a well-managed inventory system, which gives business owners one less thing to worry about.
Aside from improving the overall bookkeeping and inventory system of a business, invoices serve as legally binding agreements that can be used as legal proof that an agreed service was carried out. As invoices serve as a sales agreement between a business and a client, they outline the services rendered and provide documentation of the payment terms. For this reason, a legally-sound invoice can be used for refuting false claims and protecting businesses from false lawsuits. They can also be put to use when a business wants to take further action after not getting paid despite multiple attempts. When issues like this escalate into legal matters, the right invoicing tool can present historical data that contains crucial details about the transaction to ensure the legality of the document.
A professional invoice template may serve many other roles depending on its type and the necessary information required in each business. Invoice templates can be easily customized to suit various types of businesses, including freelancers, consultants, small to medium enterprises, corporate businesses, and so on. As every business is different, choosing a versatile and adaptable invoice template helps in portraying any business in the correct light.