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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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.

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.

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.

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.

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.

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.

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 2: Then, select Create Receipt from the menu.

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.

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!

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.

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.

Boost your understanding of Return on Revenue – Dive into our article to learn more!

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.

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.

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.