Tips to improve your eCommerce invoice generation process
An eCommerce invoice is a document used for the confirmation of the order placed by a business or a customer. Initially, the order placed by the buyer, and the seller sends out the invoice later requesting the money for the products. The seller may provide credit to the buyer reducing the costs to the buyer.
The reason behind the invoicing process is to track sales by the seller and purchases made by the buyer. At a future date, an audit is conducted by an organization as a half-yearly or yearly practice. The audits performed are to check and invigilate against any malpractices by an individual or a group.
An e-mail of the eCommerce invoice is sent to the concerned customers during the delivery of the goods. It remains a mandatory practice to attach the physical copy of the invoice to the buyer.
Reasons why an eCommerce invoice process is essential?
Every process in the business world has a reason if not immediate, for many other reasons they might be required. If the business doesn’t furnish a receipt or invoice it is considered a blunder from their end. Yes, it is essential, invoicing for a transaction as it stands as a proof for the purchase.
Following are the reasons why a business need the process of invoicing
- When a customer pays money to a seller for the product purchased, the invoice stands as proof of investment. The invoice also stands as a guarantee for the product purchased.
- For auditing purposes and maintaining books of accounts, the invoices are sent to the buyers to update the sales volume of the organization for a period.
- The copy of invoices will serve its purpose when judicial cases crop up. Invoices are mandatory to settle discrepancies between parties.
- For the preparation of financial reports of the organization, the invoices stand as a supporting document.
- When the sales volume has increased than usual, the preparation of invoices will help in tracking the inventory of goods and also to stock it up for delivery for prospective customers.
The deal is deemed to be illegal if the seller is not producing any invoice or receipt for the transaction made. Hence the invoicing process is imperative for the successful functioning of the technical aspects of the organization.
With the advancement in technology, there is always a need for enhancement of the invoice process. The areas that can go in for improvisation are:
It is indispensable to make your brand stay in the mind of the customer. You may choose to include the brand logo and the brand name to be on the invoice and also on the packages. Making an electronic copy of the same is even more essential and may stay with both the parties even when the physical copy goes missing.
On the invoice, you may include any discounts you are planning to offer in the future to your customers. This develops some affinity with your brand. It may help in further connections and also spread your worth through word of mouth with others. Invoices when sent through e-mail can be customized to a great extent and also include other features that you may find suitable for a particular customer.
Email the invoice copy
Emailing an invoice copy is always a sound idea as it stays with the customer forever and can come back to your further business. The standard practice is to send out a physical copy of the invoice along with the package, forwarding an email copy stand as a new and advanced practice. Another reason is it can be customized and specific discounts for a particular customer is an added feature.
Document the terms and conditions on the invoice
Prominent positioning of the terms and conditions of the organization is predominant. Mentioning about the terms and conditions is indispensable and can be rightly placed at the back of the invoice or the bottom of the face page.
In case if your company has a stipulated period within which the payment has to be made, else the buyer may have to incur penalty charges, please do mention it.
Mention Outstanding dues and other details
It is rudimentary to mention the outstanding amount from the buyer on the invoice. The result of late payment is the penalty incurred also has to be stated.
Although the payment details of your organization maybe with the buyer, it is worth mentioning the same on your invoice to avoid further delay.
Compliance to the regulatory and laws
Ensure your invoicing process adheres to the regulatory authority for the taxes of your organization. The invoices will have the tax details of the region your business is in. This makes it an easy process while computing your financial reports.
The clarity in the mention about the taxes
When the organization has enormous dealing with various buyers, the invoicing process will have to be diligent. The taxes incurred by your organization while procuring some goods have to be levied to the buyer. It is more than likely to see many items will be under various tax categories which will be charged on the buyer.
Make use of the advancement in technology
With various enhancement and automation in every stream of the business, the invoicing process can be automated and enjoy the seamless functioning of the process with less personnel interference.
The efforts of an individual and some errors that may arise due to handling the process manually, which can be avoided by automating or improvising the invoicing procedure. There are simple and attractive templates with the possibility of customization when you opt for improvisation.
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