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Ms_Meggi

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Published on: 19 Apr 2019 by meggi

Why You Really Have To Invoice

Invoices are essential documents that a business must make constantly on every transaction. It helps in management and record-keeping; it even protects the invoice from legal issues. Let’s see the benefits of invoicing.

  • Record Keeping. One of the most difficult things to do in business is to keep records of basically everything that runs in your business or company. Papers really fly around the office space, literally, and not just one type of paper, but many different types of papers like bills, and purchase orders (even invoices have different types themselves). It is a very stressful task for an entrepreneur to do. However difficult this task might be, an entrepreneur should still do this for future purposes.

Invoices help the company in keeping track of the sales of the company. It gives the company a way to track dates of the transactions, which employee did the process, as well as the amount of money paid in the transaction or debts if ever there are any. It is of great importance to when it comes to accounting.

  • Tax Purposes. Though the government does not have a set guidelines or templates or rules for the different types of invoices (or an invoice in general) a business should possess, it is still a must to do the recording and the maintaining of the sales invoices. It is highly suggested that business owners, especially small business owners, keep a record of all the transactions that have happened — and invoices have a large role in doing this. Since the invoice records the sales of the business, it also helps in computing the correct amount of tax that should be imposed for the company.

 

  • Invoices are not only made for the sole purpose of record-keeping. It also helps to protect the business itself from lawsuits that are either fraudulent or petty in nature. Since it records the date and the time the transaction happened, it can either prove or disprove claims or arguments. An invoice with a customer’s signature is significantly more powerful, as there is more evidence that there was an agreement, and that the transaction happened. The invoice can also be a great piece of document when it comes to investigating if there are any legal laws broken.

 

But Invoice Takes A Lot of Time

It is true. Making invoices surely will make your head ache. It will stress you. It is not an easy task. Hopefully there are tools in the Internet that can help you make it easier, such as invoice template.

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