Cash flow affects every small businesses and in these difficult times getting payment for goods and services is becoming more and more difficult. Businesses are finding that long held customers are filing for bankruptcy or closing down leaving them with unpaid invoices.
According to a study by FreeAgent an accounting system provider small businesses are taking too long to chase their unpaid invoices or giving their customers too much leeway in the first place. When running a small business ideally you need to be chasing customers as soon as the invoice becomes over due not waiting a month or two or when you have trouble paying your wages bill or your own bills. Setting time aside each week will ensure you know who owes you money and how much.
BusinessFlow's invoices to generate report gives you a quick snap shot of how many invoices are outstanding how much they owe , as well as how many days they are overdue, This easy to use report allows you to group by customer and then then quickly produce an account statement giving each customer a breakdown of what invoice has been issued and the status of each invoice.
The above report is colour coded so you can easily see which invoices are over 90 days old and need immediate action. The total amount of invoices outstanding will keep you focussed on collecting money.
This list of invoices can be exported to excel or printed out so you can shared the tasks of contacting customers between people.
BusinessFlow also gives you an account statement for each customer detailing which invoices have been paid and which ones are yet to be paid
Grouping outstanding invoices by customer gives you a total of how much is owed by each customer
Finally for those businesses that have a lot of jobs at any one time BusinessFlow provides you with an invoices to generate report which will display all those jobs where invoices have yet to be issues making sure you have complete control and do not forget to invoice someone
If your business is registered for VAT, when you supply goods or services to someone else who is also registered for VAT you must give them a VAT invoice and pay the collected VAT to HMR and customs
However by being registered for VAT registered, you can then reclaim VAT on purchases made for your business when you have a valid VAT invoice for that purchase.
What is a VAT invoice
A VAT invoice provides detailed information about Goods and services you have delivered. If you fail to do this then you may be liable for a fine and the invoice must be issued with in a specific time frame
The following are not classed as a VAT invoice:-
- pro-forma invoices
- invoices that state 'this is not a tax invoice'
- delivery notes
- letters, emails or other correspondence
An invoice must contain the following:-
- an invoice number which is unique and follows on from the number of the previous invoice - if you spoil or cancel a serially numbered invoice, you must keep it to show to a VAT officer at your next VAT inspection
- a description sufficient to identify the goods or services supplied to the customer
- the seller's name or trading name, and address
- the seller's VAT registration number
- the invoice date
- the time of supply (also known as tax point) if this is different from the invoice date
- the customer's name or trading name, and address
for an itemised invoice then the following need to be clear
- the unit price or rate (Less VAT)
- the quantity of goods
- the rate of VAT applied
- the total amount payable, excluding VAT
- the rate of any cash discount
- the total amount of VAT charged
Tax point or time of supply
The tax point, or time of supply, is the date when a sale is considered to take place for VAT purposes.
More info about Time of Supply... More
Issuing invoices is one of the most important parts of a business and if not done properly or regularly can be costly. At Infotek Software we appreciate that raising invoices is a time consuming process so we have worked very hard to simplify the process to provide you with a program which will quickly provide you with professional looking invoices.
Invoice Pro is a simple program that will allow you to quickly raise invoices in a PDF format for printing out or emailing to customers. Alternatively with both BusinessFlow Job Tracker or BusinessFlow ONLINE you can easily convert a quote into an invoice for the whole balance or staged payments. All created invoices are automatically stored in the document store online and are instantly available to your customers via the customer portal. Businessflow reports allows you to easily see who has yet to be invoiced or which invoices are overdue and how many days overdue they are. An account statement will detail all invoices and whether they are paid or not.
for more information about VAT invoices see HMR & Customs website