fbpx April 2021 | Billdu

Tracking your billable hours and invoicing clients for your time is one part of your consulting business you want to stay on top of to keep your business profitable. It’s essential that you carefully record the time you spend working on your different projects and invoicing your clients regularly to ensure they pay you. A consulting invoice is one way to do this.

Preparing a Consulting Invoice Template

Using a consulting invoice template will help make this process simple and quick. It’ll allow you to create a professional invoice that lists your services, the hours you worked on a particular project, and the amount the clients owe you for this particular invoice. This simple and quick guide will show you how to invoice your clients using an invoice template for consulting services.

1. Include Your Company’s Information in the Header

It’s essential that your consulting invoice template comes with a header. You can create a standard one that will appear on every invoice you send out to your clients. Inside the header, you should have all of your company’s relevant information. Make sure to include:

2. Keep Track of Your Hours

It’s an industry standard in the consulting business to charge by the hour. No matter if this is the arrangement you have with some of your clients or all of your clients across the board, meticulously tracking your hours is a must. The system should work for you and it should be something you can commit to for as long as you’re a consultant.

You want to put each billable hour in your records because this can help stop you from missing out on potential cash flow. One of the first steps of setting up a consulting invoice using a PDF template is to track your hours so you can bill. The client will want to see a clear breakdown of why their invoice total is what it is, and showing them the hours worked at the rate per hour is one way to avoid confusion.

3. Include an Invoice Date

Bookkeeping is another big part of setting up a sample consulting invoice because it’ll help you get organized come tax time. You want to include the date you prepare the invoice right below the client’s contact details. This date will help you quickly file and pull it again if you need to refer to a particular invoice down the road. Most businesses use sequential numbers on their consulting invoice template.

4. Add Contact Details for Each Client

Below the header, your consulting invoice template should feature a space for you to fill in your client’s contact details. It’s essential that you keep updated records and list the correct point of contact on each invoice, especially when you start dealing with dozens of clients.

If you start to work with larger companies, these contact details will usually be someone from the billing department rather than the contact you use on a day-to-day basis. You should confirm the point of contact for each client and take their information because this can help you get paid quicker for your consulting services. For smaller businesses, your day-to-day contact may also be the person you go to for billing.

5. List Your Services Clearly

For the clients, it’s extremely important that they know exactly what they have to pay for when they get their invoice. This is why each invoice template for consulting services should allow you to clearly list your services in an itemized list. This allows your clients to skim down the list and see what you did on a specific project and it makes it easy to reference later. Your itemized list should include:

Many times, you’ll be able to organize this information in a small table at the bottom of your consulting invoice. If you can, you should include a separate column for every piece of information to make it easier to double-check and for the client to understand exactly why the charges are at the level they are.

6. Highlight the Payment Due Date

Make sure you have the payment due date clearly listed on your invoice. It should be as highly visible as possible so it’s not possible for your clients to miss it. Consider putting the payment due date in a different color or bolding it to make it stand out from the rest of the information.

Additionally, get in the habit of giving your clients a specific due date on each consulting invoice. You want to avoid vague language like “payment due in 30 days” because this opens the door for different interpretations. This can help the client pay you faster because you have a tight deadline and it’ll avoid confusion.

7. Number Each Invoice

Each invoice you create should come with a unique number. Including this in the consulting invoice template will allow you to easily track and pull a specific invoice if either you or your client has an issue down the line. A consistent numbering system will also help you file your invoices all year long and keep your records organized. Using sequential numbers is one of the easiest ways to accomplish this.

So, you can start numbering your consulting invoices as Invoice #001, and the second invoice will be Invoice #002, and the sequence will continue with each additional invoice you send out. It’s also possible to create a numbering system that will include the invoicing date on your Google Docs invoice templates. This number should be at the top portion of your invoice where it’s easy for your client to see at a glance.

8. State Clear Payment Terms

Every sample consulting invoice you work with should include payment terms. It’s a very good idea to discuss your payment terms with each client when you onboard them before they sign any contract. This will reduce the chances of surprises when you send out your first bill. The payment terms should include a list of payment methods you’ll accept from your clients for your services, and the most popular include:

Additionally, this is the section of your consulting invoice template where you want to include your policy for late payments. If you plan on charging late fees with overdue payments, you should carefully list out all of these details in one section so the client doesn’t get surprised if they forget to pay on time.

9. Total the Amount Due

At the bottom of the invoice under your itemized list for your service charges, include the total amount due for your services. You should add in any taxes or discounts in this section too. Just like you do for the due date, it’s important that this sticks out from the page. You could use bolder, larger, or more colorful fonts to accomplish this. Doing so will allow clients to easily look at the consulting invoice, find the payment and know exactly how much they have to pay.

Consultants need effective invoice templates

Five Tips for Creating an Effective Invoicing Process for Your Services

As a consultant, you’re aware that you have specific accounting needs that will directly impact how you invoice each client. These quick tips will help you set up your invoice template for consulting services to improve the entire process and help your clients pay you faster.

Tip One – Automatically Track Your Hours

You want to save time on your administrative tasks whenever possible because this allows you to focus on the more important aspect of your work. One quick way you can do this is to automatically track your hours rather than having to manually track them and make notes about each service you offer.

It’s possible for you to install browser extensions that will help keep track of all of your time for you. If you choose to use a cloud-based accounting program, it will allow you to log your hours directly into the software. In turn, this can streamline your tracking ability to help you concentrate on your projects.

Tip Two – Accept Several Payment Methods

The more payment methods you’re willing to accept for your services, the more convenient it is for your clients to pay you when you send them your consulting invoice template. When it’s easier for your clients to pay you, they’re more likely to send payments on time or ahead of schedule. This is why it’s standard to accept the most popular payment methods, like credit cards, but you could also consider adding mobile or online payments as well.

It’s possible to offer recurring payments for your clients because this allows them to pay their invoices automatically on a set schedule. Depending on the software you pick out, it’s possible to accept recurring payments and track them as they come in. This can help you avoid late payments and fees.

Tip Three – Request Deposits

If you take on a long-term project that is going to take you months to finish, you will want to ask for a deposit upfront before you start working on it. Ideally, you’ll ask for between 25% and 50% upfront to help give your business a steady cash flow while you work. This also reduces the overall risk for yourself because you guarantee your business at least a partial payment for your services before you start working.

Tip Four – Send Out Project Invoices Immediately

In order to ensure that your clients pay you as fast as possible for the service you render, you want to send out your Excel consulting invoice as soon as you finish this project. While invoicing immediately may not automatically mean that the client pays you straight away, it can help keep work at the forefront of your mind and leave you less likely to forget a project task and leave it off the invoice.

Tip Five – Be Polite

This one may seem like common sense, but being polite about any communication you send your clients regarding your invoice template for consulting services can create a good working relationship. You could include a brief thank-you note on the bottom of your consulting invoice because it helps it feel more personal. When you follow-up about payment, make sure any emails you send or calls you make have a cordial nature because your clients will respond favorably to this.

Consulting invoice template - effective invoicing processes

Create a Consulting Invoice Using Billdu’s Free Trial

Billdu offers you a completely free trial where you can test out our software and make a host of invoice templates for consulting services. You can also track the status of each invoice on the dashboard to ensure that your clients pay you. It’s possible to set up different payment methods, add your business information, and tailor your consulting invoice template to each client. We’ll help you set your business up for success. No more manual editing of consulting invoice templates, with Billdu you automate the invoicing processes with a few clicks.

Invoicing the non-electronic way can easily take up a big part of a business owner’s time and resources that you could spend elsewhere. A bill creator can make it easy to create, send and track invoices to ensure your clients pay you in a timely fashion. No matter if you’re looking for the best bill creator with a lot of features, all-in-one invoicing or accounting software, or a free invoice generator to help make your business more profitable, there is a bill creator available for you.

Important Components in a Bill Creator for Small Businesses

When you search for the best bill creator, it’s easy to feel overwhelmed. This is especially true since new invoice tools get added to the market and older versions get routine updates to feature new bells and whistles. Before you start looking for a bill maker for the self-employed, consider what you want out of this new software for your business.

Budget

Your budget and the cost of your bill creator is a top concern for business owners, especially small business owners or people just starting out. Luckily, there are bill makers available in a host of different price ranges, including several that offer free items like blank invoice templates that are set up and ready to go. A lot of paid options like Billdu offer a completely free trial, and this lets you test out the bill maker before you commit to a yearly or monthly plan.

For many bill creators for small businesses, the business’s structure will impact your ultimate cost. Some apps will charge a flat fee per month or year no matter how much you use it, and other apps will charge by the number of client profiles you store or the number of invoices you send a month. Looking at your billing history can help you decide which is the best bill creator for your business.

Ease of Use

When you run your business, you want technology that helps you streamline your tasks instead of making them more complicated. The last thing you want to do is manually search through your client list each time you open the bill maker or spend hours manually uploading receipts when you send a bill off for reimbursement. How familiar you are with new technology and the software you used previously will influence how complex the new software feels. Take advantage of the free trials and see how easy it is for you to work the software.

Ideally, the best bill creator will be easy to use through a web browser and a mobile device because this makes your invoicing process on the go simple and straightforward. You also want to have easy access to customer support if you run into problems with your PDF templates or other features in the software.

Features

It’s important to note that just because one software suite has more features it doesn’t automatically mean that it is a better invoicing tool. If you believe this, you could easily overspend on features you never use. However, you also don’t want to save money by opting out of functions you need. If you pay for a bill maker for the self-employed, look for the following features:

  • An easy way to send and store receipts for your expenses that the client reimburses
  • Client profiles you can save and pull up
  • Connectivity to different payment gateways
  • Easy way to follow up on any invoices that go unpaid
  • Invoice generator that offers customisable templates to create a professional brand
  • Online invoicing

Integration Capabilities

Some of the best bill creators can easily take care of all of your business’s accounting needs, including monitoring your cash flow and invoicing. If you pick a software suite that is just for billing and invoicing, it should easily integrate into whatever accounting software you already have on deck. Otherwise, this increases the chances of making mistakes as you take information from one program and put it into another one. This can cost you time and revenue.

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Bill maker by Billdu - everything you need for creating bills online

Billdu Offers a Comprehensive Bill Maker for Large and Small Businesses

Billdu is a solid cloud storage software suite that helps you with bill creation, revenue tracking and much more. The dashboard is a very user-friendly space that lays out everything you need to keep your business’s finances organised on on-track. There is a host of useful features you can take advantage of, including:

Accounting Connection

If you don’t do the accounting yourself for your business, it’s essential that your accountant has access to your bill creator software. If they don’t and you have to manually type it out or send it, this increases your risk for costly errors. It can also cause trouble when you’re starting to get everything organised for taxes because you run the risk of losing items like receipts.

Billdu offers an accounting connection that makes it fast and easy to share your documents directly with your accountant. You won’t have to worry about typing errors or paperwork with it since it’s all electronic, and your accountant can pull it up right on the screen. If you scan in the receipts, this makes it even easier for them to keep everything organised.

Appointment Scheduling

It’s important that you never miss appointments with your clients, and Billdu allows you to create appointments with new or existing clients on the dashboard. All you have to do is find the client, pick out a date and time that works for you, choose your location, attach your product or service and add notes.

Once you set the appointment, you can ensure that you don’t forget it by adding it to your phone’s calendar with push notifications. The appointments pop up as a list, and you can create an invoice for your client for your time after you finish the appointment and send it off.

Business Tool Suite

Billdu is one of the best bill creators available that offers a nice business tool suite to help you in multiple areas for your business. You can take advantage of all of the services or scale them down to your exact needs, including:

  • Book Services – If you offer services, turn on booking. This allows your customers to quickly and easily book your business. You will want to enter the service’s duration, the payment options you accept and when your services have open availability. When you finish, your invoice template will allow you to bill for your time and send it off.
  • Chat – Offering a live chat is one way to engage potential customers and expand your business’s support services. The client is able to write a message and attach a file or an image before each communication goes straight to your inbox on the website or mobile app. You can add documents, reply to the messages, add images, or include your products or services.
  • Profile Creation – The business profile you create with Billdu allows you to add your logos or colors and other relevant images. You can fill in your business hours and address, and it allows you to pick a status to show anyone who sees it if you’re currently busy or available. When customers go through your sales channel, they’ll see this profile and be able to read a bit about your company to build trust.
  • Selling Online – If you want to sell your products online, you can turn on the Online Store option. Your customers can buy directly from your sales channels, and it allows you to add products, add your payment methods, and set up delivery or shipping options. Billdu will create an order automatically with an attached invoice with the shipping costs, products and relevant details.

Currencies and Languages

Do you intend on working with one currency or only dealing with customers who speak one language? Most businesses won’t do this because it cuts out a huge potential customer base, and it can easily hamper your business’s growth.

However, Billdu’s software allows you to send invoices in 16 different languages, and you can choose from dozens of different currencies. This opens up your business for international transactions, and it’s great because it’ll automatically convert your prices into the local currency to ensure you get the correct exchange rate.

Expense Records

Keeping track of all of your expenses is key to helping keep your business’s cash flow going smoothly. You want to know at a glance if you can afford to delay payments or offer new products or services, and Billdu offers you online expense management tools. You can see what you have coming in and going out money-wise, how many clients have to pay, and more.

Additionally, there is a receipt scanner available to help prevent you from manually entering every receipt you get for your records. Instead, you can quickly and easily scan them in, sort them, and file them electronically. This makes it very quick and easy to recall them if you need them, and it’ll help keep your business organised come tax time.

Billdu - all in one bill creator

Inbox for Client Communications

Communicating with clients is key to your business’s survival, and Billdu has the inbox to help you manage your chats, emails and documents in a centralised location. Each time you send an invoice, it’ll show up in the inbox to allow you to track it. Each piece of outgoing and ingoing communication will end up here, and each document opens in a safe online link. Your client will be able to pay the invoice or accept an estimate or quote for your products or services. You’ll get push notifications and automated messages for each action a client performs, like:

  • Accept a Quote or Estimate – If the client decides to accept your quote or estimate, they can notify you here.
  • Download – Clicking this button will allow you to download the document for your records.
  • Get Order – This button will create an order that is ready to download.
  • Get Receipt – This will generate a cash receipt that you can download and send to your client.
  • Payment Details – If a customer has questions about a payment, clicking this button will display a reference number and your bank account.
  • Pay Now – A customer can click this button to pay the invoice straight away when you send it out to them.
  • Print – If you want to print the document for your records or for the client, you can do so here.
  • Remind Me – Clicking “remind me” will set a reminder about a specific document. This is useful if you have a lot going on at once.

Opening a conversation with your client will also allow you to attach documents like estimates, invoices you built from your Excel templates, images and more. You can also book services, add products, or schedule and remind yourself about appointments.

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Try Billdu today to start creating professional bills and tracking your expenses via our user-friendly online dashboard and mobile apps. You can register for a 14-day free trial below.

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Invoicing

The interface of your bill creator is arguably one of the biggest things you want to focus on when you’re looking for new software for your business. It should allow you to be as detailed as possible and add a description of your products or services, and Billdu does.

You can also calculate and add shipping costs right on the invoice. Taxes and discounts are easy to add and show too, so you can give your client a full view of all of the services or products you provided. If you want to add photos, Billdu invoice maker can do that too.

Notification Center

Since Billdu allows you to have multiple team members working at the same time, it can be easy for things to fall through the cracks. This is the last thing you want with a bill maker since it can mean delayed payments. It can also cause confusion if one team member doesn’t know that another team member is already working on a client’s order.

The notification center will help get rid of all of this confusion. It’ll help you stay well informed of any major events relating to your team or documents. This way, you can easily catch problems very early on and fix them before they snowball into a big and expensive mess.

Payment Reminders

Even if you have Word invoice templates on-hand to help make your business look more professional, it can still be hard to see which clients have and haven’t offered to pay for your goods or services yet. This is especially true if you have a larger business to worry about with dozens or hundreds of clients and a very busy business to run.

With Billdu, you can easily set payment reminders for your clients to give them notifications when the due date on their invoices are coming. You can also set payment reminders for the due date, and you can notify clients when they pass the due date and head into late payment territory. This feature can help ensure your clients pay and it can help reduce the amount of late payments you get. In turn, you’ll have more time to focus on your business instead of chasing clients.

Smart Contact Lists

Keeping track of your clients can be challenging, especially if you have hundreds of them. The last thing you want to do is spend hours manually entering your clients’ details each time you create an invoice because this has a very high error threshold.

Smart contact lists allow you to quickly and easily organise everything that you need to create your invoice, expense record or estimate. Once you get it into the software suite, this bill creator will allow you to autofill everything when you click on the client. You can also edit your point of contact and relevant details to keep your information up to date.

Try Billdu’s Free Software Trial

If you’re looking for the best bill creator, look no further than Billdu. We offer a completely free trial of our software that allows you to see how user-friendly and convenient it is to use for your business. You’ll get fast payments while being able to create estimates, invoices, purchase orders, recurring invoices and get delivery notes and expense records.

You can manage multiple clients to streamline your billing processes to improve your business’s cash flow. It all starts by testing out the free trial and getting in touch with our support team with any questions you have. Let us help you grow your business.

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Pro invoice maker for small businesses

When you sell services or goods for your business, you’ll enter an agreement with the client that involves completing a financial transaction. You can have a verbal or written agreement, and you’ll outline the transaction terms or document them with an invoice and a receipt.

Receipts and invoices work as source documents for your accounting purposes, and an invoice is also a bill. You’ll use both of these items to record sales transactions for your business, and they’ll help you account for requests and payment receipts. If you’re wondering if you need to have an invoice or receipt, this is for you. We’ll break down what the differences between the two are, what you use them for, and how to generate both for your business below.

Defining an Invoice

First up, what is an invoice? In short, an invoice is a request for payment or bill for a sale. It’ll list all of the services and goods you provided to the customer as a business, and it’ll also list the credits, prices, taxes, discounts and total due. You can use blank invoice templates to create this document and send it to your client when you complete the transaction.

It’s not uncommon for an invoice to give the client 30 days to pay for your services or products, and many businesses offer a discount if the customer pays within the first 5 to 10 days of the invoice date. The invoice will include all of your relevant contact information for the business, including the address, phone number, web address and email.

You’ll want to include the contact information for your customer with the date of the transaction. It should also include the date you issued the invoice to the client, the services or goods, quantities, prices, invoice number and the total price.

You don’t want to confuse your invoice with a purchase order because a purchase order is a written request from a client to your business that authorises the delivery or shipment of goods with a payment agreement. It’s essential that you understand that an invoice is a legally enforceable document. You can use any invoice you issued to a client for a specific service or good to legally ensure they pay you for it.

Not sure if you need an invoice or receipt? Read on.

Defining a Receipt

On the other hand, you have a receipt. A cash receipt is an acknowledgement from you as a business to your client that states you got the payment they sent for your goods or services. This will act as proof to the customer that they sent the agreed-upon payment. It will also act as proof of ownership if they purchased goods from your business.

A receipt should list pieces of information like the business and client names, prices, discounts, taxes, payment mode, receipt number, date of payment, the total amount payable and the business owner’s signature. The receipt acts as a legal document too.

However, it won’t always list the quantities of goods the client purchased, nor does it always outline what the client purchased. This is where your invoice comes back into play because it lists the services or items involved in the transaction. If the receipt has this list, you won’t have to worry about sending out a separate invoice.

Invoice or receipt explanation and definition

Using Invoices or Receipts

Your invoice functions to keep track of the sales for your business, request payments from your clients, help control your inventory, and facilitate the delivery of services or goods. You can also use invoices to track expected future cash flow or manage your relationships with your customers by offering different payment options. These options include things like extended payment periods or discounts if they pay in cash or pay early for your goods or services.

Customers or buyers use receipts to prove they paid for goods. This is especially important when they want to return an item that is defective or faulty. Since the receipt will have the transaction date and item on it, you can easily see if they did, in fact, purchase an item that doesn’t work as it should.

Unfortunately, people use invoice or receipt interchangeably a lot, and this makes a lot of people assume that there isn’t a difference between the two items. However, you know as a business owner that the two things are very different. Some people find this out the hard way when they try to settle all of their accounts for their business. Other people don’t realise the difference until they go to file taxes and find themselves in the middle of a paperwork nightmare.

Needless to say, it’s a very big risk to not understand the key differences between the two items. You understand that both documents are important for accounting purposes, and both will come into play when you involve a client and your business in a transaction for services or goods for payment.

Both receipts and invoices work to record the amounts owed and paid for in regards to the outlined services or goods. Both function as legal documents. As you can see, there are a lot of similarities between the two items, and this can lead to confusion. However, there are key differences you want to consider, and this can help alleviate the confusion.

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Try Billdu today to start creating professional invoices and tracking your expenses via our user-friendly online dashboard and mobile apps. You can register for a 14-day free trial below.

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Similarities and Differences Between Receipts and Invoices

The similarities between the two documents are what confuses a lot of people, and you can even get sample invoice templates that people mistake for receipts. The biggest similarities between the two are:

  • Both contain client and business contact information
  • Both function as legal documents
  • Both list the total payment amount if the client makes the payment in full
  • Businesses issue both

On the other end of the spectrum, you have the differences between receipts and invoices. Once you learn these things, it gets much easier to know which is which when you talk about them. The biggest differences include:

  • Invoices function as a request for the client to make a payment while a receipt is proof that the client paid the bill.
  • You issue an invoice before the client makes the payment, and you issue a receipt after you get the payment.
  • The invoice will list out the total amount of money owed by the client, and the receipt lists what the payment mode is and how much the client paid.
  • A business can issue an invoice without the customer making a payment, and you’ll enter the payment on the invoice as a Debit and a Credit to Sales under Accounts Receivable.
  • If the client gets an invoice but doesn’t make a payment right away, the client will add the payment as a Credit under Accounts Payable or a Debit under an asset account or an expense account.
  • Businesses use invoices to track services or goods sold while they use receipts to acknowledge that the client has made a payment.

Who Issues Invoices?

Generally speaking, a seller, vendor, trader or merchant usually create an invoice using a template and issue it. Your accounts department can also issue invoices, and services like mechanics, hospitals, doctor’s offices or repair shops can also send invoices to their customers.

If you choose to go out to a restaurant or bar and order drinks and food, the waitstaff will bring you an invoice when you get ready to leave. This invoice is another name for the check, and it outlines everything you had that evening and have to pay for.

Who Issues Receipts?

Just like invoices, sellers, vendors, merchants, and traders can issue receipts. However, you can issue these receipts to your client or a third party to acknowledge that you got the payment for your goods or services. The client will typically get a receipt from a credit card machine if they swipe their card when they pay for your goods or services if they choose to pay by credit or debit.

Sometimes, you could stamp an invoice as “paid” if you don’t want to issue a separate receipt. This is very common in a restaurant, supermarket or grocery store where the invoice will turn into the receipt once it has the paid stamp on it.

Similarities and differences between invoices and receipts

How to Make Receipts

You can make receipts using Word invoice templates, but this can be very time-consuming if you have dozens of clients to worry about on a daily basis. Since you use both receipts and invoices for accounting purposes, it’s essential that you keep good records for your business. Billdu allows you to quickly and easily create receipts that are professional-grade, and you can automatically fill in any relevant information you need, depending on the transaction.

Essential Receipt Components

Since receipts are so important to your business, make sure to understand what the essential components are to this document. These components should be on every receipt you issue to your clients because they serve as proof of payment. You should include:

  • Address and name of the client making the payment
  • Address and name of the person or business receiving the payment
  • Amount paid
  • Date the client made the payment
  • Initials or signature of the person who got the payment
  • Payment method (credit card, bank transfer, cash, etc.)
  • Reason for the payment (goods or services)
  • Receipt number for tracking purposes

Common Types of Receipts

When a client makes a large purchase or you have a transaction that involves money, it’s wise to have a receipt. This will show a record of where the client gave their money, when they gave it, and for what. It’ll help you as a business owner later down the line if the customer asks for a return, refund, or exchange for their goods. As a business owner, you’re responsible for giving the receipt to your client. Common types of receipts include:

Blank Template

You can create your own receipts using a blank template. It’ll have the same basic components as most receipts, including both parties, how the client paid, how much they paid, and more. You can also customise a blank template to include whatever information you deem important, and you can personalise them to include your logo.

Cash

A cash receipt is one you’ll use at the end of a sale. It pulls the information from the sale and acts as proof of purchase. It usually includes your business’s address and name, the client’s name and address, sale date, description of what you sold, and the amount the client paid. It could also include how the client paid, such as through credit or debit card.

Deposit

This receipt keeps a total on how much a person put into an account or put as a down payment on a vehicle, property or item to pay out. It’ll list the name and address of both parties, the type of deposit it was, how much the client paid, the date and the person who got the deposit should sign or initial it.

Donation or Thank You

When a client makes a donation, you should give them a thank you letter or receipt. This is because the client could get a tax break, depending on the amount they donate. You should include the name of the organisation that got the donation, the donor’s name, the amount donated and when you got the donation. It can show the client how you’ll use their money. For example, maybe you could use it to get instruments in an inner city school so they can have a music program.

Hotel

This type of receipt shows how much someone pays to stay in a hotel room. It’s very important because staying in a hotel could entitle the person to a tax writeoff, or they could take it to their employer for reimbursement. This receipt should have the guest’s contact address and name, the hotel’s name and address, the date issued, name of the employee issuing the receipt, stay length, how the client made the payment, and how much the room was.

Packing Slip

While this isn’t strictly a receipt, it can have a lot of the same required elements while acting as proof of ownership or purchase. One of the biggest differences between a packing slip and a receipt is that you’ll label it “Packing Slip.” You’ll include the purchase date, business name and address, client name and address, the items in the shipment, the quantity of the items, item price and the total price paid by the client. You could also see this classified as a delivery note or receipt.

Rent

Your rent receipt will have the name of the person paying, amount of rent, property address, how they paid and the payment date. The person’s agent or landlord should sign it, and both the renter and the landlord should have a copy.

Simple

This simple template is popular for when you can’t find an example of the receipt type you need to properly document a sale. You want to include the sale date, receipt number, amount paid, name of the person paying, payment reason and how the client paid you. If the payment was for a specific time period, you want the receipt to reflect the dates it covers. If it’s an installment payment, you want to have the amount received with the balance after you apply the payment. You’ll sign the receipt as the business owner, and it’s better known as a sales receipt template.

Taxi

Taxi drivers will issue this type of receipt. This receipt will prove how much you paid as a passenger, when you rode in the taxi and how far you went. This is another important receipt to get because you could write it off on your taxes or ask your employer to reimburse you.

Try Billdu to Create Invoices and Receipts

Billdu gives you all of the tools and software you need to create both invoices and receipts. You can easily customise your invoices or receipts to match your specific situation. You’re able to add your logo, business information and client information before sending it off electronically. The client can then download and save it for their records. We offer a completely free trial that you can use to see how to make receipts and invoices and streamline your business’s finances.

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Did you know that not using financial data analytics correctly can cost a company 1% in revenue per decision? Over time this can have a major negative impact on your business. That’s why SMB (small to medium business) owners should define, develop and apply finance analytics.

With a proper team making financial decisions they can make better financial decisions and prevent loss of revenue for your business. But what is financial data analytics and why is it important for SMB owners to integrate it into their business model? That’s what you can find out in today’s article. Keep reading to find out more.

What is Financial Data Analytics?

Financial data analytics is a process that allows business owners to view their company’s financial data statistics. With this type of data, you’ll have the extensive financial knowledge to improve your company’s performance based on its financial status.

Furthermore, knowing your financial data statistics allows you to calculate your company’s revenue to see where you can improve. Small businesses need to know what their financial data statistics are so they can expand their company and see which sections they can save costs on.

With proper financial data analytics, you can predict the future using financial forecasting so you can make better decisions.

Types of Financial Analytics

There are several types of financial data analytics to consider in a business infrastructure. With these types of statistics, you can view where you’re losing money. This way you can devise a plan to improve your processes so that you make money instead of losing it. Take a look at the different types of financial data analytics below.

Client Profitability

Every small to medium-sized business must identify the clients that are making them money and those who are costing them more. Within a business structure, company owners should adopt the 80/20 rule. This means 20% of clients should account for 80% of your profit whereas 20% of your time will accumulate 80% of the results.

With the 80/20 rule, you can determine which 20% of your time produces 80% of the results so you can spend more time on those activities. Or identify which 20% of clients contribute to the most profit so you can nurture those customers more.

You will only know what your client profitability is with a proper financial data analytics report to help you identify which clients are contributing to the growth of your company.

Client profitability in financial data analytics

Products Profitability

For your small or medium-sized business to stay ahead of your competitors you must identify which products or services are making more profit. Rather than analyzing your business as a whole, you can use product profitability data to help you determine the profit of each item or service you sell.

You’ll have to analyze each product individually to get a proper record of its profitability. Your product profitability data will give you insights across your product range so you can improve your growth and revenue over time.

Predictive Sales

Sales revenue is important for all types of businesses. You must have an overview of your sales data to improve sales predictions. You can do this in many ways such as identifying past trends that increased profit. With a predictive sales financial data analytics process you can evaluate economic peaks and dips in sales so you can manage them efficiently.

Value Driven

Most small business owners have goals on how they’d like to expand their companies and how much profit they want to make in years to come. You can create a business strategy map so you can pinpoint your value drivers which is what your company needs to identify its strategic goals.

With value-driven financial data analytics, you can assess these levers to ensure you can reach your business goals by delivering the expected outcome.

Cash Flow

You need a certain amount of money to run your business. You won’t be able to run a company without electricity or employees to do the work. So you need cash flow to pay your utility bills or your employees’ salaries. Cash flow is fundamentally the livelihood of your business.

However, you must understand your cash flow to gauge the health of your company. You can predict cash flow by using certain tools such as regression analysis. With proper cash flow management, you can ensure you have enough money for your business to operate and you can support a range of other functions to optimize your business.

Financial data statistics cash flow

Five Reasons Why You Need Financial Data Analytics

Now that you know more about the different types of financial data analytics what are the benefits of having this type of data? Take a look at the following five reasons why you should use financial data statistics for your business.

Helps You Make Important Financial Decisions

Financial data analytics can help you enhance financial decision-making. You can develop your company’s goals and objectives and evaluate economic trends with financial analytics. This type of data evaluates your company’s historical data so you can have a better understanding of your company’s future financial health.

Provides an Overview of Your Financial Status

Unlike financial statistics reports used for accounting, financial analytics provides a more dynamic examination. You must have an overview of your financial status if you’re seeking investment capital. Analyzing these documents helps investors determine whether you’re making money.

Additionally, it assists investors to identify a reasonable cost per share. Shareholders invest in a business to make more money.

To define shareholder total equity the capital investments are added to assets and liabilities are subtracted.

Minimizes Waste and Increases Revenue

Using financial analytics will help business owners make smarter decisions to minimize waste and increase revenue. You’re able to have sound financial planning that will improve cash flow, profitability, and value of your company. You can do this by using the following analytics:

  • Claims processing
  • Portfolio analysis
  • Credit scoring
  • Customer analytics

To minimize waste you must identify cross-sell and up-sell opportunities and build models for credit scoring to help you identify risky customers. You can also recognize fraudulent transactions using patterned detection.

Makes Business Processes Easier for Employees

With new technology and constant changes in processes within any industry, businesses have become more complex. This raises plenty of questions from employees. However, financial data analytics helps answer these questions.

Financial analytics gives managers and executives more detailed and accurate reports about the company. As a result, it strengthens the relationship between employees and managers and improves work performance. Questions that employees might ask are the following:

  • Are investments within the organization made in the right path?
  • What are the risks that the business is exposed to?
  • What factors could affect the company’s growth in the future?

A detailed report will provide peace of mind to make the business processes easier for your employees. This is especially true for small to medium-sized business owners who have employees who are concerned about the future growth of the company.

Manage Your Company’s Financial Assets

Efficiency ratio analysis helps a company identify how well it’s managing assets and uses this type of data to generate revenue and cash flow. Efficiency ratios include:

  • Fixed asset turnover ratio
  • Inventory turnover ratio
  • Cash conversion ratio
  • Asset turnover ratio

Analyzing whether a company has too much inventory assists you for upcoming sales months. Keeping too much inventory is a problem that can tie up money. While having too little inventory can lead to losing market share or customers.

Documents Used in Financial Data Analytics

Financial data analytics can be viewed on financial statements. Three financial statements are used to analyze financial data. Take a look at these statements in this next section.

Income Statements

An income statement allows business owners to view their organization’s performance over a certain time. The main components of an income statement include expenses incurred, revenues earned, and net profit and losses.

On the other hand, income statements don’t show you the current financial status of your company but it does provide data on future opportunities. Your net income is the results you get from your income statements. The income statement will give you an overview of how far your organization’s goals are that need to be achieved.

Balance Sheet

Your balance sheet gives you data on your financial assets and items you have within your organization. Unlike income statements, a balance sheet can provide data on your company’s current financial position. A balance sheet will list your company’s resources but the information doesn’t show you how these resources are managed.

There are two main components to a balance sheet:

  • Assets: Your company’s assets are divided into non-current and current assets.
  • Liabilities: An organization’s liabilities are divided into long-term debt and current liabilities.

Cash Flow Statement

A cash flow statement is similar to an income statement because it keeps a record of your organization’s performance. The difference between income and cash flow statements is that the income statement gives data on cash items. On the other hand, cash flow statements take non-cash items into account such as depreciation.

Your cash flow statement provides data on the inflow and outflow of cash within your organization. With this statement, you’ll have a clear indication of what your company’s debt is and the bills you have to pay to keep the organization running. A cash flow statement will also provide information on financial growth over time.

Analyze Your Financial Health

To analyze your company’s overall financial health you need to consider three main components of your financial data analytics which are profitability, leverage, and liquidity. These components are internal factors that a company operates on that are out of business owner or management control.

Find out more about these three components in this next section.

Leverage

Leverage is the amount of money a company has borrowed from a third-party organization to optimize its operations. This is one of the components within an organization that banks and investors consider.

A business will have a high leverage ratio if it has more debt compared to its equity. With a lower leverage ratio, the company won’t be exposed to risks such as bankruptcy.

Profitability

Profitability is your company’s return of investment that you’ve put into your business. Many factors can affect your business’s profit such as debt, expenses, market trends, and even your assets. As a business owner, you must always put plans forward to increase your profit to improve your company’s performance.

Liquidity

Liquidity is your company’s cash available to pay your bills, debt, and any other expenses that you need to pay in order for your business to stay afloat. Every company whether big or small will need the correct amount of liquidity to pay their company’s expenses.

Low liquidity means your organization has poor performance and it’s not making enough profit. Your liquidity can fluctuate depending on how much sales you bring in and the effects the economy has on your business.

Therefore your cash flow won’t be the same every month. But no matter what the situation is you need to ensure that your company is making enough money to pay salaries and to pay for your bills each month.

Final Thoughts

Do you need an easy way to create financial data analytics for your company? Billdu provides affordable digital tools for SMB owners to create detailed financial data statistics for their organizations. Thanks to the online invoice generator and expense records tools to get an overview of your company’s expenditure.

What’s more, you can manage your inventory with a tracker so you can provide accurate data on your product profitability analysis. With all the online financial tools offered by Billdu, you can create detailed financial data analytics to optimize your company’s performance and increase your revenue.

Digitalize your financial data analytic reports with Billdu so you can have access to them on the go and share them with multiple shareholders or people within your organization.

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A lot of small businesses run into problems when they try to set up their invoice payment terms. These payment terms and conditions for invoices help to ensure that your clients pay you on time and that everyone understands the payment terms and schedule. Without them, it’s common for clients to pay weeks late, and it can cause you to have to chase the client for your money.

This is why it’s essential that you understand invoice terms and conditions. You can get paid quicker, and this is better for your business’s bottom line. Below, we’re going to give you invoice payment terms examples that you can personalize for your own business, outline why it’s so common for businesses to have payment delays without them, and list out which payment terms you should include in your invoice payment terms.

The Evolution of Invoice Payment Terms

Originally, it was very common for businesses to mail their clients paper copies of their invoices once a month, at the end of the month. Then, the business would give their clients a decent amount of time to make payments. While this did work and continues to work, it’s very slow. It could be weeks before you see payments, especially when you factor in that clients have the option of mailing you a money order or check back. It’s also easy for the invoice or payment to get lost on the way.

Today, online invoice templates allow you to quickly and easily generate custom invoice terms and conditions for each client, send it electronically, and set up options for instant payments. This is great for helping you get the money they owe you quicker, and it also helps cut down on your total paper waste. There’s a very small chance of anything getting lost on the way, and you can digitally track everything to ensure nothing falls through the cracks.

Basic Invoice Terms and Conditions and Their Functions

Your invoice payment terms should outline a basic contract for your business that highlights when the client has to pay for your services. If the client doesn’t pay on time, your invoice terms and conditions could spell out late penalties that you can add and levy each time they’re late. This gives the client more incentives to pay on time each time they work with you.

If you’re an international business or you work with international clients with different currencies, you must include the currencies you accept on your payment terms and conditions for invoices. It also has to have the correct conversion rate for each different currency you accept, and it has to be able to accurately convert the currency each time you work with these international clients.

Which forms of payment does your business accept? The invoice template usually has space that outlines which payment types you do and don’t accept. For example, many businesses are moving away from accepting bank wires or checks because there is a high amount of risk associated with them. There are also risks associated with credit cards and chargebacks, so many businesses don’t accept them. Let your clients know right away how they’ll have to pay to avoid trouble later.

It’s essential that you clearly state the date the payment for your services is due. A lot of businesses have a simple 30-day payment rule from the date you issue the invoice, but this isn’t set in stone. You can set your payment due date at any time frame that is convenient for you and your clients. You can usually issue an invoice and get payments as soon as a day later, or within a week. You don’t have to wait a month or more to get paid anymore.

One of the most important factors with your invoices is getting them out the door in a timely manner. The prep and setup time for sending invoices dropped significantly due to the fact that you can use online templates through Google Docs and other places. You can easily craft a professional-grade invoice in a few minutes and send it electronically to your client straight away. Some businesses have a point where they have to get all of their invoices for the month. So, if you miss this set point, you could find yourself setting your receipts back to your next pay period.

If you experience delays in creating or issuing your invoices, you can end up with a payment receipt delay for that customer. This is why you want to track everything electronically and do everything you can to ensure that each invoice goes out quickly after you render services. There are several invoicing systems available like Billdu that can help you speed up this process, and it’s now possible to draw up an invoice and set your various invoice terms and conditions from your tablet, smartphone, Mac, or PC.

Common invoice payment terms explained 1

Important Payment Terms and Conditions for Invoices

Any invoice payment term you have should use different codes to set them apart. There are dozens of codes available, but the most common ones you can consider incorporating into your invoice terms and conditions include:

  • 30 MFI – 30th of the Month after your Invoice Date
  • Cash Account – No Credit – Account Conducted on a Cash Basis
  • CBS – Cash Before Shipment
  • CND – Cash Next Day
  • COD – Cash on Delivery
  • CONTRA – Payments Offset Against Supplies Purchased from the Customer
  • CWO – Cash with Order
  • EOM – Payment at the End of the Month
  • Net 10 – Payment 10 Days after the Invoice Date
  • Net 30 – Payment 30 Days after the Invoice Date
  • Net 60 – Payment 60 Days after the Invoice Date
  • Net 7 – Payment 7 Days after the Invoice Date
  • Net 90 – Payment 90 Days after the Invoice Date
  • PIA – Payment in Advance
  • Stage Payment – Payments at Agreed Stages

When you set your payment terms up, whether it’s with a brand new client or a returning one, it’s essential that you be as clear as you possibly can. You want to avoid abrupt changes in payment scheduling or terms to prevent potential confusion on the clients’ behalf.

This is especially true if it’s a returning client who is used to making payments at a specific time and a certain way. When you offer consistency, conciseness, and clarity in your invoice terms and conditions, it’s much more likely that your clients will honour the agreement and pay you on time.

Different Invoice Payment Terms Examples

The invoicing process can be very complex, and this is more true when you consider that you have to set up different payment terms. Many people are unaware of the importance of having the right invoicing system in place, and this isn’t a trap you want to fall into. This is why you want to have a good understanding of the different invoice payment terms, including:

Split Payments

If you routinely deal with expensive services, luxury items, or big-ticket sales for your business, you should offer split payment options on your invoice terms and conditions. The strongest asset in your business is your cash flow. If you try to request full payment for very expensive services or items, it could put your clients or potential clients off. It’s important to have an effective accounts management system in place if you plan on accepting split payments from your clients. However, Billdu can help you accomplish this, and you could see your business continue to grow because of it.

Net 30 or Net 60

If you have the term Net 30 or Net 60 on your invoicing template, it could confuse your clients. Instead, you might want to write out “30 days” or “60 days” to indicate that your clients have up to 30 days or 60 days from the receipt of the invoice to make a full or parietal payment. You also want to include a hard due date on each invoice you send out so there is no confusion. Failure to include clear writing or hard due dates is one quick way to end up with non-payments, overdue payments, or partial payments.

Most manufacturers in every sector offer Net 30 invoice payment terms. If your business is a manufacturing business and you decide to change your terms, your customers are likely to push back. Fashion and construction industries like to use Net 30 or Net 60, so keep this in mind if your business or client pool falls into one of these sectors.

Discounts

If you plan to include a discount system as an incentive to get faster payments from your clients, you want it to stand out on your invoice terms and conditions. It’s good practice to highlight it in bold so it jumps off the invoice. For example, you could offer a 1% discount if clients make the full payment within 7 days of the receipt date, or you could have a 2% discount if they make the payment the next day. This discount-style system works to motivate clients to make prompt payments to help save a little on their bills.

Invoice payment terms for freelancers

Invoice Payment Terms Examples for Freelancing

If you work in the freelance industry, you should require partial upfront payments as a down payment. Then, the rest of your payments should be escrow-style until you complete the work. Depending on how well you know the clients, you could also offer Net 30, Net 60, or full fee upfront invoice payment terms. In any case, you want to fall in line with industry standards to avoid complications with your clients.

When you set up your Word invoice template, there are other important factors to keep in mind. There is no blanket solution that will work with all of your clients. Even inside specific industries, you could end up with a client who gives you immediate payments as soon as they get the invoice, but another client could require you to offer Net 60 terms. It’s on you as a freelancer to work out payment terms that suit both your business and the clients.

Enticing Customers to Stay Inside Your Invoice Terms

There are certain elements that will dictate how long you let invoices go without payment from the client. The smaller your invoice value is, the quicker clients generally send payments. Invoices with a higher value on them may be harder for clients to fulfill in one go, and this can result in delayed payments. However, you do want to clearly state in your invoice terms and conditions whether or not you charge late fees once you go past a certain date with no payment. Set these terms and don’t change them to ensure that both you and your clients are on the same page.

The quicker your clients pay you, the better your business’s cash flow will be. You can set up your invoices several ways to prompt quick payments to improve your cash flow. One way to do this is to offer a discount if the client pays early. You can include Prompt Payment Discounts (PPD) on your invoices, and they’re very common with small businesses.

One invoice payment term example of this is to set up a Net 30 due date. If the client pays within two weeks of the receipt date instead of waiting the full 30 days, you could reward them with a small discount. How much of a discount they get depends entirely on you. Typically, the discounts start at 1% and go up to 3% for early payments. An easy Excel invoice template offers you a way to create favourable terms for your clients.

Say your customer pays the invoice in full within 10 days of getting the receipt for services with Net 30 terms. You could offer them a 2% discount, and you’d write this out as 2%/10-Net 30 on the invoice. Clients will always appreciate discounts, and it helps you pull money back into the business faster. In turn, you’ll be able to meet any payment deadlines you have and keep your business in the black.

These terms are extremely important because they act as an official channel to help you get your payments. They also establish a framework that is legally enforceable between you and your clients regarding payments. If you sell big-ticket services or goods to people and your clients habitually pay you late, you will find yourself financing payments to your creditors to carry your clients. You don’t want this to happen, and this is why you set up iron-clad payment terms and conditions for invoices with every transaction.

As you know as a business owner, not being able to meet your financial requirements can cause your business to fold and go under. Luckily, invoice payment terms aren’t as challenging as many people believe them to be if you have a little insight into how they work and the conditions for your business’s specific category, sector or industry. Pick out a reputable and user-friendly invoicing system to help make your life easier and ensure you get paid quicker like Billdu.

Start Your Free Billdu Trial and Work Out Your Invoice Terms and Conditions

If you’re a business owner and you want to learn a new way to create and track custom invoices for your clients, try Billdu’s software with a free trial. You can easily add your logo, input your payment terms, add discounts, offer different payment options and track dozens of invoices from one centralised dashboard. You can choose from a host of templates to help you create your invoices, send them out and get money flowing back into your business.

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As a business owner, you’re most likely familiar with payment receipts since you issue them each time you complete a transaction involving cash with a client. However, if you have a brand new business, you will want to set up a receipt template that you can customize to each customer’s order. If you’re not sure what goes on them or where to get free receipt templates, we’re going to outline all of the important considerations you want to include below.

Defining a Payment Receipt

What is a receipt? In short, your receipt is a form of written acknowledgement that you transferred something of value to your customer and they paid for it. Vendors usually give their customers receipts at the end of a transaction, but it’s not uncommon to issue receipts in business-to-business dealings and during stock market transactions.

For example, a business can purchase inventory from a supplier. The supplier will give the business an itemized payment receipt that shows the items, quantities, and how much the business paid out. For customers, you issue them a receipt when they pay for your goods or services, and you can use a receipt template to make a branded one.

In addition to helping prove ownership of goods, receipts also work for other purposes. As a business, you may require a customer to show you a receipt if the customer wants to return or exchange an item. Other businesses need a receipt if the customer files a warranty claim. Payment receipts are important during tax time too because the IRS will require any business to prove certain expenses, and you can do this through saving receipts. You should generate receipts for the following instances:

  • Invoices
  • Petty cash slips for any small cash payment
  • Gross receipts like deposit information for credit or cash sales, cash register tapes, invoices, receipt books, and forms 1099-MISC
  • Cash register tape receipts
  • Credit card statements and receipts
  • Receipts from any raw material purchases. They should show the amount paid while confirming that they were all necessary purchases for your business. They could include cancelled checks or other documentation that identify who paid, the payment amount, and proof of electronic funds transfers or payments.

What Is a Receipt Template?

A free receipt template is a blank form that is very user-friendly and enables businesses to create receipts when they need them. This template will document the date the customer paid, the amount, reason for payment, and who paid your business. You want to give a copy of this receipt to whoever paid.

You can use a cash receipt template to create receipts for different needs. For example, you could have sales receipts for your business, general receipts for any type of sale, rent receipts, or an itemized one. You could use it for services or products, and you give it to whoever pays as a record of their purchase. It’s an essential part of record keeping for your business.

If you get a free receipt template, you can recycle it over and over while customizing it to include a lot of information about the payment or purchase. You should provide a receipt right after you make a sale and both parties should keep a copy for their records. A missing or lost receipt can cause a lot of problems down the line for both parties if an issue with the products or services come up.

Payment receipt template

Free Receipt Template Components

Once you have your free receipt template, you have to know what to add to it. Generally speaking, most receipts have the same core items, no matter what you give a person a receipt for. Each time there is a cash transaction, a receipt should exchange hands too. The biggest components you want to include are:

  • Amount Paid – Did the customer pay the full or a partial amount? List it clearly at the bottom of the receipt, and keep the balance there too if there is one left.
  • Business Information – Make sure to include the business’s information like the name and address. If it’s a custom receipt, logos, phone numbers and email addresses are also common.
  • Customer Information – You want to have at least the name and address of the person who made the payment. It may be a good idea to have a telephone number too in case you need to clarify something. For big businesses, this may be someone in the billing department.
  • Date – Have the date the person gave you the payment listed clearly.
  • Initials or Signature – There should be a line on the receipt for the person to initial or sign after they make a payment.
  • Payment Method – Most receipt templates allow you to customize different payment methods like cash, credit cards, debit cards, etc. Include the payment method.
  • Payment Reason – Why did the person make a payment? Was it for specific goods or services? Each item should be on the receipt.
  • Receipt Number – For filing purposes, each receipt should have a unique identifier on it. It could start like Receipt #001 for the first one and Receipt #002 for the second, and so on. This will help you pull it up later if you need it.

Why Keep Payment Receipts

When you run a business, properly storing receipts and organizing your files can streamline your operations. This is especially true for accounting and tax purposes. Keeping all of your receipts can also:

  • Deductible Expense Tracking – Keeping receipts that outline each transaction a business makes will ensure you have proof to claim any and all deductions on your taxes.
  • Financial Statement Preparation – You’ll need to refer to your cash receipt templates and records to prepare your financial statements like balance sheets or profit and loss statements.
  • Monitor Progress – Records can help you see how your business is doing. It’ll show which items you’re selling, whether or not the business keeps improving, and what changes you should make.
  • Organization – You could end up working with several vendors and have dozens of sources of expenditures and income. Receipts help you separate out nontaxable and taxable income. They’ll also help you identify your deductions.
  • Tax Return Preparation – Good payment receipts will help you create a short snapshot of your year in taxes. You need to keep and organize them to get the best return you legally can.
  • Tax Return Support – To back up your tax return in the event of an audit, you need proof of each deduction and write off you had. Having these documents can help you avoid fines.

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Which Receipts to Keep

So, what payment receipts should you keep? Unfortunately, it’s always better to adopt the better safe than sorry method when it comes to your business’s finances, and this means that you want to keep all of the receipts that pertain to the business. You may want to consult with your accountant, but here are a few you absolutely have to keep:

Advertising

You advertise for your business, and you should keep receipts for each type of advertising you do. This could include printing business cards, web hosting, setting up billboards, or running ads in magazines. Whatever you do, make sure you have a cash receipt template for it.

Assets

Your assets are the property you use and own in your business. They usually include things you keep and use over the years like computers, furniture, machinery, or vehicles. You’ll have to deal with asset depreciation on your taxes too, and receipts can help support this. Keep records when you spend money on your assets in the form of cash receipts. If you upgrade the computers, get a receipt. Also, keep records of when you sell off one of your assets.

Car and Truck Expenses

If you can deduct car and truck expenses, you’ll want to keep receipts for any maintenance you perform or fuel you buy. You may also be able to deduct wear and tear if you keep track of mileage, but you should talk to an accountant about it.

Education

Maybe you have to get more education in your business like an accounting or business degree. Did you take a class to learn a new system? If so, keep your bank records and receipts to show that you paid for your education.

Entertainment

Did you take a customer out to lunch? If so, these are deductible expenses on your taxes. You want to keep payment receipts, but you also want to show proof that this meal and other entertainment-related activities are directly business-related.

Inventory

You’ll buy inventory to sell to your customers or you’ll buy raw materials to create things to sell. If you do, get a receipt template that shows the amount paid, payee, and proof you paid for the items. If you can’t get a receipt, make sure to keep the invoice and cancelled check as proof. A cancelled check is proof that the person cashed your check to pay for the inventory.

Networking

Do you have to go to a tradeshow or conference for your business? If so, keep the bill or receipt just like you would with education expenses. Keep your bank records as proof of purchase too because you can deduct these costs come tax time.

Office Supplies

Any and all office supplies you purchase like staples, paper, pens, paper clips, and more are tax deductible. So, each time you purchase new office supplies, get a payment receipt to show on your taxes. Even smaller purchases can quickly add up over the year.

Other Expenses

A lot of your payment receipts will end up under the other expenses category. As a general rule, if you plan on writing something off on your taxes, you’ll need thorough documentation that you purchased the items. Each business is different, but it could include anything from your internet and phone bills to a portion of your rent or light bill.

Professional Services or Contractors

Did you pay a lawyer to draft a new contract for you throughout the year or ask a graphic designer to create a receipt template for your business? When you pay the bill, keep both the invoice and receipt as proof and deduct them.

Travel

During the year, you may get on a plane to visit a client’s location or stay in a hotel for a few days during a conference. Keep all of the bills and receipts for your travel expenses to help you deduct part or all of your trip expenses. The receipt is usually enough proof, but keeping the bill is good practice too. For example, say you have a home office and you want to deduct a part of your mortgage. To do this, you’ll want to show how much the costs went to just your office each year.

Hotel receipts

How to Pick the Best Free Receipt Template

Now that you know why it’s so important to keep receipts and what to put on the receipt itself, how do you pick the best free receipt template? Do you want a PDF or Excel file? Do you want to be able to customize it with your business logo and information each time, or would you rather it auto-fill?

Ideally, you’ll get a software suite that can help you create the best payment receipts possible for your business, like Billdu. Billdu offers a host of features that can streamline your business’s entire finances, including:

Receipt Scanner

Trying to keep track of paper receipts can be a nightmare, especially if you have a busy business with multiple transactions each day. To save you from the hassle, a receipt scanner will digitize everything and you can store them right in your dashboard. This allows you to recall receipts as soon as you need them, send them to your accountant come tax time, and have all of your receipts in one centralized location when you need them. No matter if your business is large or small, this is a great way to stay organized.

Accountant Connection

When you set up your cash receipt templates, you want to be able to quickly and easily share all of them with your business’s accounting team. Ideally, you’ll be able to do so without worrying about losing any, having to print them and send them in manually, or worry about duplicating them. Billdu offers a fast way to share all of your payment receipts directly with your accountant. This can streamline your finances, keep you organized, and reduce the risk of missing out on deductions.

User-Friendly

Any receipt template you use should be very user-friendly while allowing you to easily customize it to suit your business. You should be able to add your logo, business information, client information, and anything related to the transaction without having to move through multiple screens. Billdu has a very intuitive and user-friendly dashboard that is easy to navigate, and you’ll find pleasant, smooth, and informative invoice and receipt templates that you can tailor to each transaction.

Multiple Payment Methods

You don’t want to box yourself in with just a few payment methods when it comes to your products or services. Although you can have cash receipt templates, you should have templates that display other ways to pay like credit cards, debit cards, or check. Mobile wallets are also very popular for large and small businesses. The types of payments you accept can make your business more approachable for customers, and this can boost your sales.

Different Currencies and Languages

Are you a business that only plans on having customers that speak one language and use one type of currency? Chances are, probably not. It’s in your business’s best interest to offer a host of languages and currencies on your templates. Doing so will open your business up to more clients to increase your sales, and Billdu’s templates will automatically convert the totals into 16 different languages with their matching currencies. In turn, you can easily deal with clients all over the world.

How to Create Receipts Using Billdu Receipt Template

Creating receipts in Billdu is super easy.

Step 1: When you receive payment for an invoice, add the payment first with on click.

Step 1 in creating a receipt - Add a payment

Step 2: Then, select Create Receipt from the menu.

Step 2 - Creating receipts in

Step 3: Voila, your receipt is ready! This is not even a step, is it? So it’s literally two click to add a payment and generate a receipt for it in Billdu.

Payment receipt generated in

Billdu’s Free Trial

Billdu offers a free trial that gives you plenty of time to experiment with our software and see how it can improve your business. It works well for large and small businesses, and you can easily create custom receipts with your business’s logo and information. We also allow you to save and auto-fill in your customer’s information to make the billing process smoother. Try it today!

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Financial reports contain important financial information that helps creditors, auditors, and analysts to evaluate your company’s economic performance. Some of the information in these financial reports are required by law in the accounting industry for tax purposes.

Using financial reports, small businesses can monitor their revenue and access their past successes and put plans forward for the future. So why do small companies need financial reports management and is there an easy and affordable way to create these reports?

Find out all you need to know about what financial reports are, how they work and how you can benefit from them in today’s article.

What Are Financial Reports?

A financial report is a document that contains formal information about your company’s financial activities. The report contains the information in a structured format so that it’s easy to understand and so that details are easy to find.

The information included in financial reports are the following:

  • Internal financial statements such as income statements, balance sheets, cash flow statements, and statements of a stockholder’s equity.
  • Any communication regarding quarterly earnings and information through conference calls.
  • Includes financial information found on your company’s website.
  • Financial reporting to government agencies such as exchange commission or securities.

The Difference between Financial Reports and Financial Statements

The terms financial statement and financial report are typically used interchangeably but they are not the same. A financial report is an umbrella term that various types of reports fall under. However, a financial statement is one of those types of reports found on the actual financial document.

A financial statement contains information on a company’s liabilities, assets, expenses, and cash flow.

How Do Financial Reports Work?

The purpose of financial reporting is to provide extensive information about a company’s monetary activity. What’s more, it’s a way for a business to follow proper accounting practices because it includes information on your organization’s expenses, revenue, profits, and capital.

A financial report can either be digitalized or it can be put onto a hardcopy. However, for small businesses to save on costs you should always create your financial reporting online. Some platforms allow you to create online invoices effortlessly. The benefit of using online systems is that documents can be retrieved with a click of a button. You can add all the information that’s needed on your financial report with your digital documentation.

Once you’ve created your financial report you can send it directly to accountants, auditors, and even investors. If your report is digitalized you can forward your financial reports with a click of a button to all authorized personnel that requires your financial information.

Financial reports and financial condition of a company

How Small Businesses Can Benefit From Online Financial Reporting

There are several ways businesses can benefit from using online financial reporting. Take a look at these benefits in this next section.

Tax Season Will Be a Breeze

Tax season can be stressful for any type of business. For smaller corporations, it might be easier to get your documents in order but you want to make the process less of a hassle. With online financial reporting, you’ll have all the information you need to submit your tax returns.

Even though a financial report makes this easier for business owners to do there are tax laws that also require it. The government uses these reports to ensure you’re paying your taxes. With accurate financial reporting, you can reduce your tax burden and ensure all your resources don’t get depleted in a short space of time.

Evaluating Your Business

Financial reporting gives you a comprehensive view of your organization’s liabilities and assets. On the other hand, you need certain information that shows what situations occurred that changed your financial condition. Your financial report should also contain information on operating results.

Financial reporting contains information on income statements which shows investors data on sales and how much profit you’ve made as well as how much you’ve lost

With a financial report, investors can see your company’s income performance and how you can improve cash flow.

What’s Your Financial Condition?

Before investors can put money into your business they first need to analyze it to see if it’s worth the money. Investors and other types of organizations use financial reporting to determine whether your organization is profitable or a financial liability.

The financial report’s balance sheet will show investors what your company’s outstanding debt is and your equity components so they can make a decision about investing in your business. Additionally, some investors will want to know where their money is to see if they’re making any profit which is what a financial report’s information provides.

Making Future Decisions

Analyzing financial statements is crucial for the future of your company. On your financial report, you can view the value of your assets to see if you can afford more. If you’re running at a loss you can decide whether you want to sell some of your assets to potential investors.

This process is crucial for small businesses especially if they plan to expand in the future. What’s more, by analyzing where you’re running at a loss you can make better decisions of how to improve your companies services so you can increase your revenue.

Fixing up Errors

You may notice that some errors within your organization may be costing you more money. With accurate financial reports, you can detect if there are any illegal financial activities within your organization. You’ll be able to detect these illegal activities if you notice discrepancies in financial statements.

Through a proper reconciliation service, you can find any financial error and fix them before they cost you money.

Monitoring Cash Flow

Small business owners must always monitor their organization’s cash flow to see where they are making profits and where they’re losing money. However, there are cash flows that are not connected to a company’s operations. This type of cash flow is from investing or financing.

Money from all sources is what pays investors. By viewing your cash flow statement on your financial report, investors can see whether an organization has enough money to pay for expenses.

Financial reporting and cashflow balance

Common Financial Reporting Mistakes to Avoid

When creating financial reports there are several mistakes you should avoid at all costs. The following mistakes are quite common especially for small business owners or freelancers that are new to financial reporting.

That’s why it’s important to know what they are so you can ensure you don’t make them when creating your online reports.

Not Having a System that Tracks Receipts

One common mistake is not having a system that tracks your company’s expenses. Some new business owners may not know the importance of keeping track of their bills, receipts, or banking records. Your receipts are important documents that are used as evidence to support tax breaks and avoid right offs to the IRS.

Without your receipts, you may not be able to file proper financial reports during tax season. Another mistake is creating hardcopy receipts because they’re difficult to store and retrieve when you need them.

You should opt to create and store digital receipts and have a system that you can use to track them. With online receipt solutions, you’re able to find the documents easily so you can add the information to your financial reports. You can also send the receipts to multiple administrators without making copies of them which will save your small business money on ink, paper, and printing machines.

Mixing Up Personal and Business Finances

A common mistake that entrepreneurs and freelancers make is mixing up their personal and business finances. You must keep your personal and business financial reporting separate otherwise the information on your document will be incorrect.

Any inaccurate information on your financial reporting document may lead to an audit by the IRS which can cost you money which is usually a 25% filing cost. As a small business owner you don’t want to create unnecessary costs for yourself so keep your personal and business financial reporting separate to avoid audits.

Not Logging All Purchases

Sometimes new business owners forget to log all of their purchases on equipment or even merchandise. The type of tax deduction for business assets can differ depending on the lifespan of the equipment.

For example, paper, pens, or ink cartridges are categorized as office supplies and therefore are written off the year they are bought. On the other hand, major equipment purchases such as computers, printer machines, and physical security systems are long-term assets.

You must log your purchases of all major assets so that the information on your financial reporting is 100% accurate. To log your purchases you can use online expense records that allow you to scan receipts of all your purchases so you can keep a digital record of them.

Allowing Too Many Administrators to Access Accounts

Your accounts files are confidential and so you don’t want this type of information to fall into the wrong hands. New business owners may be too trusting with their accounting data and allow too many administrators to access the information.

Having too many unauthorized personnel access your accounting records can increase the risk of fraud. You should only appoint authorized accountants to access your financial records and each person should have their own user name and password.

With a cloud-based accounting system, you can appoint certain duties to your accounts department. Debtors and creditors clerks can be restricted from certain information while bookkeepers can access everything they need to manage your bookkeeping.

Not Backing Up Your Files

Some companies have a physical and digital backup system for all the information needed to create their financial reports. However, this may not be ideal for freelancers or small business owners because physical backups will need storage space and this can cost money.

For small corporations, it’s best to have a proper online backup system that’s cloud-based. Without a system that can back up your files, you could lose important information which can cause a major financial loss for your company.

You want a backup system that you can access anytime and anywhere using a mobile device. So make sure that all your business data is saved so you can create your financial report remotely. It’s safer to store your files online because there is no way your documents can go missing. You decide how long you want to keep your files and when it’s time to destroy them.

Using Manual Processes

Manual file retrievals, data capturing or reporting can cause major errors on your financial report. Some business owners may even take money from one account and use it for another without reporting or allocating the funds correctly which can affect the accuracy of your documents.

That’s why you should consider switching from manual processes to automatic digital solutions. That way you can eliminate the risk of human error when filing your documents.

Additionally, you must keep an accurate file of investments, expenses, and savings so that your financial report don’t have any errors on them. The best way to manage your files is to have a notification system so that you stay informed about any major financial activities happening within your company.

Digital financial reporting software and processes

Why You Need Digital Financial Reporting Solutions

When you decide to use digital financial reporting processes you’ll have more transparency and you can improve the accessibility of information by digitally tagging statements on your file. So when investors view your document they can quickly jump to any data on the form by using a search option.

Digital financial reporting can be shared with accountants and stakeholders easily and securely.

Final Thoughts

Are you wondering how you can make financial reporting easier for you and your accountants? Perhaps Billdu can assist you. There are plenty of features we offer that allow you to digitalize your financial report.

Create invoices via our web interface or mobile apps and access an instant overview of your income. Use the predefined professional invoices templates to make your invoices look professional.

Use the expense records tool from Billdu to manage receipts by scanning them onto the system so you can have easy access to your expenditures. Or use the purchase order option so you can keep track of received orders in your organization.

Do you have any experience with financial reports? Let us know what your thoughts are in the comments section below. We are always happy to hear from our readers.

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We are living in a digital age so there’s no surprise why companies are choosing to use online receipts for their customers. But not all organizations have chosen to go digital with their proof of payments so how does this impact their business?

Opting to go digital can have profound implications for any company. If you decide to go paperless you may increase your revenue. There are plenty of advantages to using online receipts and it may even improve customer or client satisfaction.

Keep reading to find out what digital receipts are, if you can customize them and what the benefits of going paperless are.

What Are Online Receipts?

When customers buy goods from a company the manager and the consumer must have proof of payment for the items that were bought. The purpose of a receipt is to provide proof of a financial transaction between the customer and the business.

In the past, receipts could only be printed out on a strip of paper. This indicated the price of an item, the amount paid by the customer and the date the receipt was printed. Merchants had to keep these receipts stored in physical files to keep track of their finances.

Now, small businesses and even freelancers have the choice of creating online receipts to send to clients. Instead of printing the information on paper, the receipt is sent to a client via email or on another digital platform.

How Does an Online Receipt Work?

Upon checkout, a merchant will ask a customer whether he or she would like a digital receipt or a printed one. Some small business owners can offer both. If the customer chooses to receive an online receipt the merchant will simply punch in the customer’s email address. The platform will then send the receipt to the customer’s email inbox.

Information such as data from the transaction and the customer’s email address can be saved. Small time entrepreneurs can use this data for future marketing campaigns.

Creating a Simple Receipt for Your Shop

For any company, branding is crucial so that customers can easily identify who you are. That’s why it’s important that business owners create their own online receipts so they can add their branding to the document.

Many platforms allow small businesses to create their own simple receipt. This way you can structure the receipt according to your preferences. Ensure you find a platform that offers a simple receipt template that you can edit and customize according to your branding.

When a customer opens the digital receipt in their emails, they’ll know where it came from because you added your branding to it.

Benefits of online receipts

10 Benefits of Offering Digital Receipts to Customers

Manufacturing paper and ink for printed receipts isn’t ideal for the environment. Did you know that digital receipts were pushed by the Apple Store as part of the sustainability movement? Going digital means going green.

There are more benefits when you decide to use digital receipts for your business. Take a look at the top 10 advantages in this next section.

1. Easy Access and Time-Saving Solutions

It’s easier to access digital receipts compared to hardcopy ones. That’s because online receipts are stored on a digital cloud that can be retrieved with a click of a button.

Storing digital receipts on a cloud optimizes workflow because you don’t have to spend hours sifting through papers to find the receipt you’re looking for. What’s more, paper receipts require manual capturing which increases the risk of human error.

With a simple receipt infrastructure, the information will automatically be loaded onto the form simply by scanning products.

You may want to also invest in a receipt scanner if you want to keep track of all your electronic paperwork.

2. Online Receipts Helps You Save Money

If you’re a small business owner then saving money should be your main priority. Buying paper and ink to print out hard copies can cost you thousands of dollars each month. You’d save money by utilizing digital receipts because you won’t have to spend capital on paper, ink and printing machines.

Using a simple receipt template you can create professional digital receipts quickly to email to all your customers.

3. Tax Season Will be Less of a Hassle

Tax season will be less of a hassle for you and your customers. When doing taxes you often have to gather paper receipts, sort them and organize them. Sorting paper receipts can take time and it can be frustrating if one of them goes missing.

Using online receipts allows you to store them into a folder that you can easily access when tax season arrives. You can label your receipts by date so that you can categorize them correctly. Additionally, you can make tax preparation less complicated when you have a digital system to work on.

There is no risk of losing or throwing digital receipts away so you won’t have to deal with books that don’t balance at the end of each month.

4. Marketing Opportunities

When you send digital receipts to your customers you’ll have access to their email addresses. As a result, you’ll have an opportunity to talk to them or send them marketing promotions. With email communication you can send your customers the following information:

  • When you have new products or services
  • Inform them about any product or service on sale
  • Allow customers to sign up for your monthly newsletter
  • Inform your customers about any changes within your business
  • Offer them loyalty programs

5. Save on Clutter and Storage Costs

Printed receipts create plenty of clutter. Some businesses will often buy archive boxes to store all their receipts. You can save on the clutter and the storage space if you use digital receipts. You won’t have a large paper trail lying around your offices or large boxes taking up space.

6. Protects You and Your Customers from BPA

Did you know BPA is found on paper receipts? This is a harmful chemical that has been shown to cause cancer in laboratory rats. Although BPA isn’t fatal in low levels, when you touch printed paper you’re exposed to the chemical more often than you should be.

If you want to reduce exposure to BPA products then you should scrap paper receipts and go digital. With digital receipts, there is no-contact handling which makes it safer for you and your customers.

7. Capture Receipts on the Go

Printing machines may require an outlet to operate. There can be battery-operated receipt printers but the battery life may not last long. With a digital platform, you can create a simple receipt on the go. As long as you have a device and an internet connection you can create and send receipts easily.

Using digital receipts works well if you’re a small merchant that goes to outdoor events regularly. You can sell items at concerts or sports days and not have to worry about running out of paper when doing receipts.

Additionally, you won’t have to stress about keeping your receipts safe during an outdoor event because they’ll all be saved on a digital platform. As a result, it will also optimize your security so that unauthorized people don’t get access to your receipts.

Another advantage of having digital receipts is that some systems allow customers to sign with a digital signature either with their finger or stylus so you won’t need to invest in pens.

8. Quick Sharing With Your Accounts Department

When you have paper receipts it can be difficult to share the information with your accounts department. It takes time to scan the paper to email and then send it through to people. Sometimes scanning a hardcopy onto a digital platform decreases the visibility of the printed data.

With an online receipt, all the information can be seen clearly and you can share it with multiple people without making copies of it. Since the receipts are stored on the cloud you can access them and send them through to your accounts department even when you’re not in the office.

Sending online receipts is quick, easy and secure so there will be no risk of them getting lost in the mail or stolen.

9. Increased Customer Satisfaction

Many customers prefer digitalized receipts because it also helps them organize and keep their receipts safe. Online receipts may help decrease their stress levels when it comes to tax season. The receipts will be sent safely to customers or clients email addresses where they can retrieve and access them easily.

Some people are also environmentally conscious and appreciate when corporations minimize their use of paper.

10. Improves Your Revenue

Now that you have a list of customer emails thanks to your online receipt methods you’ll be able to increase your company’s revenue. Most customers will return to your company if you inform them about sales, promotions or new products you’re offering.

The only way for you to let your customers know about your marketing campaign is by using the email addresses your customers have given you. With more clients or customers visiting your business to buy products or services on promotion you’ll significantly increase your revenue.

Safety of digital receipts

Are Electronic Receipts Safe?

Sending electronic receipts may be a safer alternative to paper ones. With hardcopy receipts, there is a higher risk of exposing customer information such as signatures. If a receipt gets into the wrong hands there could be a potential risk of dealing with fraud.

With most digital systems you’ll be protected by encryptions or SSL certificates so that receipts can be sent securely from one device to another. It’s important to safeguard your electronic software to prevent hackers from gaining access to your digital infrastructure.

You can also prevent unauthorized people from gaining access to your saved electronic receipts by locking this part of your system with a strong online password.

Only allow accounting clerks or bookkeepers to gain access to this part of your digital infrastructure so that there’s no risk of your receipts falling into the wrong hands.

Final Thoughts

Are you looking for an affordable platform that allows you to create professional receipts on your tablet, SmartPhone or laptop? Then Billdu can assist you. There are simple receipt templates you can use to create branded documents with a few simple clicks.

Billdu is an affordable digital platform that’s suitable for small to medium scale businesses looking for fast methods to creating professional receipts for their shops. Additionally, there is a range of online services for you to select from such as inventory trackers and exporting features.

With Billdu you can share your information with your accountants easily with no typing errors or paperwork to deal with.

So are you ready to go paperless with online receipts?

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