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Top Reasons to Stop Using Excel Sheets for Invoicing

How rude it is for someone to say that excel sheets are dated? After all, this is where it all began. Excel sheets made the task easier for accountants. These invoices have been used by numerous businessmen in the past. However, with the availability of reliable and advanced invoicing solutions, excel sheets have become redundant. While this can meet your basic needs, some conveniences can be avoided by using new and advanced
solutions.

Here are some of the reason to stop using excel sheets for invoicing –

1. No Modification Zone
2. Your Invoices are Never Consistent
3. Tied to your Desk Invoicing
4. Absolutely no Control
5. You’re missing out on so Much

No Modification Zone

Have you ever had to make last-minute changes in the excel sheet? It happens to the best of us that just before invoice generation, your client makes one more demand, and turns out it is billable. And there goes your invoice. Just adding another row is so frustrating in excel when you have done calculations through columns, or made a total using a set of cells. Adding new things or even removing entities from excel sheets is a difficult task. Those little pointers and manual formulae entry invariably lead to unnecessary errors.

Also Read: Online Invoicing for Small Businesses: Brief History & 5 Essential Invoices You Need

Your Invoices are Never Consistent

Even if you use a template in excel sheets for invoicing, none of your invoices ever look the same. It is bizarre how a simple row addition can change the entire format of the invoice. This may not mean much to you when you don’t have many invoices. But once you have to compile hundreds of invoices, it can be a real pain. And, it is not good to look at. The client surely doesn’t deserve such hassles. The entire interface of excel sheet is not made for people who are not fond of math.

Tied to Your Desk Invoicing

Have you tried to make an invoice on your phone with Microsoft applications like MS office? Try it, it can frustrate you. You want to add a cell right below, and suddenly you will find yourself in part of the spreadsheet you did not know existed. Excel sheet invoices are only worth making or editing in your laptop or desktop. So, there is no mobility whatsoever. This might not seem like a big deal, but it can be problematic in future.

Absolutely No Control

You will find it hard to make any sort of modifications in the excel sheet. In a normal day, these spreadsheets are updated among a team of workers. By the time it gets back to you, new billable hours are added by each worker. But what to do if there is a mistake? You can restore the sheet back to the previous version, but this means your employees will lose all their work and have to do it all over again. Another solution is to manually update the sheet, but it will take a lot of time, leaving you frustrated. There is absolutely no way to automate a process of version control with excel sheets, it has to be hard manual labor.

Also Read: How to Choose a Small Business Invoicing Solution: The Complete Guide

You’re Missing out on So Much

There is a better way to do things. Imagine a world where you could make and print invoices on your phone in two minutes, where you could track billable hours and save yourself from unnecessary business losses. This is the new world of online invoicing software. Here you can access your invoices anytime anywhere, make changes on the go. You can bill clients the way they want. And still maintain a consistent set of invoices. And they look pretty
good, too.

Important Information That Every Invoice Should Have

Invoices are probably the most important piece of documentation for every business. It is a document for request of payment for the services or goods a business has provided to the client. You need to ensure that extra care has been taken in creating its format and filling in the information. Many confuse it for a receipt. However, there is huge difference between the two. Receipt is a proof of payment while invoices are requests for payments. Invoices play a big part in keeping the cash flowing in. Here are a few pieces of information that it must have.

1. Id Number
2. Terms and Details of Payment
3. List of all Billable Entities
4. Date of Issue, Date of Delivery, Date of Payment
5. Tax Details
6. Channels for Payment with a Transaction Id
7. Business information and Client’s Information

Id Number

Every invoice has a unique identification number or a unique invoice reference number. You can choose a framework that works best for your business. Some businesses use date, some use the traditional system. It is completely up to you. However, you need to make sure, it is unique and follow an ongoing pattern. This is specifically for filing purposes but is a definite requirement.

Also Read: Important Key Aspect of Every Billing Software

Terms and Details of Payment

Whenever you build a contract with your client, you get all their details. This includes the payment details or how will the client pay you. This means the process of payment – Will it be a weekly payment, a monthly payment, or an hourly payment or a onetime payment. It is generally managed by the bookkeepers. So, make sure to get in touch with the accountant team in charge, and include this information in every invoice you generate.

List of All Billable Entities

It is important to add everything you expect to be paid for. For example, if you are a plumbing company and provide plumbers around the town. Apart from the plumbing services, you might have provided a pipe, a tap, or a tiling fix after the job is done. So, when you generate an invoice you should not simply write “plumbing Job”. Instead mention every billable item in the invoice, with their respective prices. This will help you in saving both your time and money on taxes later on. You need to mention clearly what are the billable entities even if you offered them for free.

Date of Issue, Date of Delivery, Date of Payment

These three things are separate entities. Businesses have their own ways of addressing dates, depending on their industry and geography. Therefore, it is best to follow the formal way of writing dates, instead of using jargons. Whatever you use, make sure the client knows about it.

Tax Details

Tax details are an important piece of information that you need to add in your invoice no matter where you run your business. Make sure to keep up with the latest legal guidelines and clearly mention the tax on the total payment. Some states may ask you to the add tax details per the billable. You need to know all these details.

Also Read: Online Invoicing for Small Businesses: Brief History & 5 Essential Invoices You Need

Channels for Payment with a Transaction Id

Remember, invoice is a request of payment. Mention your bank details in the invoice sheet to expect timely payments. In the days of yore, it was generally bank account details. But now you can add debit card, credit card and wallet links with a transaction ID. This will help you track payments for each invoice.

Business information and Client’s Information
The basic details like name, address, contact details, registration number for your business is mandatory. And similarly, the client’s details should be added.