With different demands of clients, businesses often need to experiment with invoices to get their cash flow up and running. Online invoicing software can help send out accurate bills and streamline your financial management.
Here are the different sets of invoices used by small businesses.
1. Standard Invoice
This is one of the most common invoices businesses can make using billing software for small businesses. Its format is flexible and is suitable for all industries. They should have the following information:
- Business name and contact information
- Client details
- Invoice number
- Total amount due
2. Credit Invoice
Also known as a credit memo, it is issued by businesses that either need to provide a discount or refund some amount.A thing to remember is that these invoices usually include a negative total number. So, for instance, if you need to return $20, the total on your credit invoice would be -$20.
3. Debit Invoice
Contrary to credit, debit memos are sent when freelancers or small businesses need to make slight adjustments to their existing bills. For example, you sent an invoice to your client but ended up working additional hours; you can add those to your invoice.
4. Mixed Invoice
Mixed invoices take into account both debit and credit charges in a single invoice. In this case, the total amount can be expressed as a positive or negative number. Again, you can easily make it with your billing software for small business.
While you will rarely need to make a mixed invoice for your business, if you are reducing or increasing the amount, then it would be needed.
5. Commercial Invoice
A commercial invoice is made by businesses that offer goods and services to international customers. They include all the details related to sales. Here is the information that must be added to a commercial invoice:
- Description of goods
- Total value
- Shipment quantity
- Weight / volume
- Packaging format
6. Timesheet Invoice
A timesheet is an invoice you will need to create if your billing needs to be done per hour. Freelancers and contract employees use timesheets. Some of the common industries and professionals using timesheet invoices include:
- Business consultants
- Creative agencies
7. Expense Report
An expense report is an invoice used by employees to submit expenses incurred for business purposes. For instance, if an employee goes out for a breakfast meeting with a client. In this case, they will be creating a report for reimbursement purposes. These could include the cost of the meal, fuel costs and parking charges.
8. Pro Forma Invoice
It is an estimate that you can share with your clients before providing your services. But, you will need to remember that pro forma invoices would be subject to changes once a project is complete. This will help you bill correctly and note the hours you have worked.
9. Interim Invoice
An interim invoice is used for billing large projects where the business and the client have agreed on milestone payments. Interim invoices will help small businesses manage their cash flow while working on projects over long periods of time. You can easily make it with your online invoicing software.
10. Past Due Invoice
A past due invoice is required if their client doesn’t provide payment by the date mentioned in your invoice. Ideally, speaking, you should send it as soon as you notice the fact. Make it a point to include all the service and payment details and even include interest or late fees if agreed upon while signing a contract.
11. Recurring Invoice
Recurring invoices come in handy for businesses that charge clients the same amount for their businesses. It is common among IT businesses that offer a host of packages to their clients.
It can also be a marketing package that you offer your clients that comes at a standard pricing per month. Billing software for small business lets you automate the process and send out the invoices on the same day each month.
E-invoice is a term used for invoices sent electronically, irrespective of its type. It is becoming a common norm among small businesses and freelancers. The benefits of creating e-invoices with your online invoicing software are creating them faster and even getting paid before time. To faster payment and invoicing processes, businesses can streamline their processes by integrating e-invoicing with accounts payable automation. Accounts payable automation helps to eliminate manual errors, minimize delays, and reduce processing costs, enabling businesses to improve their cash flow management and overall financial performance. By leveraging these technologies, businesses can enhance their financial efficiency and increase their competitive advantage in the marketplace.
This was how online invoicing software and billing software for small business could help your business grow. Not only will they help your business maintain cash flow, but they will also help you streamline your business processes.