Managing cash flow can become a big hassle for your business if you don’t have the right process in place. Invoice processing can be simplified to a great extent if you have the right online invoicing software in place and a super smooth accounts payable system. Zintego
The whole idea of invoice processing comes from receipts and comes to a close once the records are settled in the books.
Invoice Processing in The Business Context
Small businesses usually carry out invoice processing with an online invoice generator app
Nowadays, you can also use your work management software as a complementary invoice template that can help you create invoices as well.
You can choose to provide invoices in various forms. It can paper invoices, PDFs or by other electronic means. In short, the end-to-end process of handling invoices, collecting payments, and recording the same is known as invoice processing.
Suppliers need to send in their invoices and once the invoice is submitted you will need to follow the process that ensues.
You can take a look at these steps to develop a better understanding of invoice processing.
- Make all changes suggested by the recipient and send a fresh invoice, post that the contents are verified are once again
- Making changes in the document if any inaccuracy is identified. The same information is communicated to the supplier and they rectify the same.
- If the invoice is perfect, the accounts payable department will take the process further and process the payment.
Step 1: Invoice Verification
Suppliers or vendors usually send an invoice on the completion of their services. In the current scenario, you can send them over email, PDF, or any other electronic forms to boost communication.
Usually, invoices are made using an online invoice generator app and sent on the completion of their services.
Once the receipt is received, you will need to verify if the details are correct or not. Here are the pointers:
- The Invoice Date
- Supplier details
- GSTIN of the supplier
- Goods and services description
- The value of goods and services that have been provided
- Taxes to be paid on the same
- Mode of payment and related information
- Date by which the payment needs to be settled
Step 2: Recording Invoices in Your Online Invoicing Software
Once the verification is done, you will need to match your books and check for any inaccuracies.
This is the main reason businesses prefer using customized accounting and invoicing tools. Besides, it is always a good idea to maintain a physical copy of invoices to keep records clean and avoid any inconveniences.
Step 3: Get Your Invoices Approved
Before the advent of online invoicing software the approval process used to be a long drawn process, this is because paper invoices would get misplaced or be forgotten by the approver and thus endlessly delaying the process. The best part of the online invoice generator app is that you can generate any number of invoices with ease and get them approved quickly.
Once the invoice verification has been done, you will only need to send them for approval and you will receive the payment. Luckily, the process has been simplified using invoicing software and the approval time has been reduced to a few minutes. This will help you save on a lot in terms of time and costs.
Step 4: Invoice Payment
Now, that you have got the invoice approval, it is time to get your payment and set your records clear in your online invoicing software. Remember the payment will be done as per the terms previously agreed upon and the dates you have added in your invoice. Luckily, you can receive your payments in a matter of minutes.
This was all about invoice processing and how an online invoice generator app can help you streamline the entire process. The right payment systems, accounts payable system, digital banking, and invoicing systems can help you manage your entire finances in a seamless manner. So, the wiser option is to ditch traditional systems and get your online invoice maker app today and get going. Not only will you enjoy a smoother financial management system, but you will also never need to deal with a hassled invoice making process. If you are still searching for the right solution, contact us to find the best online invoicing software in the market.