Have you ever been stuck with the problem of an incorrect invoice? Filing an incorrect invoice can lead to many difficulties. If you make an error while making an invoice, you may end up charging less for your services. Incorrect invoices can lead to miscommunication regarding documents and affect your business badly.
Errors in the invoice are caused due to one main reason. In a company, different departments are dealing with different tasks. There are project managers who are entrusted with the task of taking care of the matters of finance and making invoices.
The slightest error or communication gap between the two departments can cause human errors. To avoid such problems and to eliminate issues like an error in the invoice or to overwrite of invoices, companies need to harness the use of invoice approval process. This process will allow the assigned people in a project to edit, create, review, and also approve the invoices before they are passed on to the clients.
Why is invoice approval important?
If you send incorrect invoices, it can affect your firm in many ways. It does disrupt not only the cycle of payment but also leaves a negative impact on the image of the company. It may also lead to many conflicts. Every organization needs to make sure that they maintain transparency and clarity of communication.
In so doing, sending correct and accurate invoices plays an important role. This will not only save you from embarrassment but also make sure that you receive your due. This can be best achieved through the incorporation of an invoice approval system.
This is a feature that is being accepted by people from all across the globe in order to get their invoices checked and made error-free. To get the task done, a number of team members have to be assigned to take care of the invoicing procedure. The admin has to make an invoice and assign it to get it approved by the team members. These team members take care of the rest.
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What are some common errors in an invoice?
Aware of some of the most common errors that are might be seen in an invoice? Here are a few of them.
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Not sending the invoice promptly
This can cause the entire process to lag down. Always remember, the sooner you send the invoice, the quicker you will receive your payment.
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Not mentioning the due date of the payment
Invoice can be sent away in many ways, some of which may be unclear to your client. It is important to specify the date by which you expect to get the payment, clearly in your invoice. This leaves no room for confusion.
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You may send the invoice to the wrong person
This is a blunder, which can lead to a great deal of confusion. This leads to a delay in the whole process of payment as you have to send the invoice to the correct person all over again.
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Following up may be difficult
It may so happen that it has been a week since you sent out your invoice, but you haven’t received any response or acknowledgment. An invoice approval process automatically follows up on invoices that are sent out and are not responded to.
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Forgetting to mention the essentials
You may forget to mention the address or the mode by which you wish to receive the payment in your invoice. Information is critical, and we often tend to skip these little details in a hurry. An invoice approval process rectifies these errors and fixes them while there is still time! Reviewing of the invoice is an essential part of the invoice approval procedure, which enhances the accuracy of an invoice. It helps to eliminate the chances of any error in the invoice.
The Workflow of Invoice Approval System
Stated below is the workflow of the invoice approval system,
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First, create the invoice
Note that you do not have to make any alterations in the process of creating your invoice. You can proceed with the process of invoice making using templates that are pre-set. Once the invoice is made, cross-check them to see that you have not made any error.
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Once the invoice is made, enable the approval procedure
After you have made the invoice, you need to get the invoice checked and approved by the team of people who worked on the project.
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Choose options according to your needs
The admin is then assigned to select options ranging from basic to expert settings, depending on whom he wants the invoice to be reviewed or edited by.
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Entrusting the correct people for electronic approval of the process
After the invoice approval procedure is set up, one needs to opt the right set of people to work who will get the invoice approved. This usually refers to the particular set of people who worked on that particular project.
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Time to incorporate the changes
After the staff thoroughly reviews the invoice, it is time to make necessary changes in the invoice without overwriting the whole invoice.
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Sending out the approved invoices
This is the final step. Once the invoice is approved and made completely error-free, the invoice approval system automatically sends it to the client.
Read Also: How Customer Analytics in Billing Software Helps You Understand Customer Behavior
Benefits of Invoice Approval System
Invoice Approval System is beneficial to a firm in a number of ways. Stated below are some of the striking benefits that are offered by the invoice approval system,
- An invoice approval system minimizes the risk of sending incorrect invoices. This is beneficial to the firm as it helps to save a lot of time. You can send the correct invoice at once and receive the payment on time. Sending incorrect invoices are leads to a number of hindrances, thereby extending the procedure and making it irksome.
- Miscommunication of the official documents can affect a firm in the long run. It does not only delay the procedure of payment but also earns the company a bad name. With an effective invoice approval system, such miscommunications can be eliminated.
- The system results in a streamlined and efficient workflow, which, in turn, makes the cash flow quick and smooth.
- Once you start using the approval system, there won’t be a chance that you miss billing any billable amount.
- You can save a great deal of time by not having to overwrite invoices.
- If you send correct invoices and not have any miscommunications with your official documents, you earn a good reputation for your firm. This also ensures ease of future transactions, and might even earn you new clients! The wonders are numerous, isn’t it?
It becomes very complicated when you are creating invoices for many clients at a time. An invoice approval system helps to ease your burden. It is a great choice for companies that require bulk invoicing. Good invoicing software helps to create customer records as well.
With the help of it, a company can send quotes to its customers. Efficient invoice approval software also offers provisions for performing tax reporting. Therefore, if you are losing for a simple, accurate, and efficient alternative to manual invoicing, you have got your solution. Adopt this method of invoice approval and watch your company reach heights of success!
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