August 1, 2023

Merchant Services

How to Keep an Invoice Simple

Merchant Services

Invoices are a critical business component for many merchants. But keeping an invoice simple can be difficult for some. Fortunately, merchants can use plenty of tools and practices to keep their invoices simple and make their companies run much more smoothly. 

How do Invoices Work

An invoice keeps a record of a transaction. It allows buyers and sellers to see the transaction terms easily. Merchants use invoices to collect payment from customers who still owe payment for goods or services. Each invoice will be identified as an invoice, and a transaction number will be included to make record-keeping even easier

Typically the terms of the transaction are listed on the invoice and include discounts, related taxes, shipping charges, or total units purchased. All this information is to make sure both parties are aware of the nature of the transaction and why the buyer is paying the amount they are.

Notably, invoices also include the date or month of the transaction. This allows both parties to record and track purchases for any auditing purposes easily. Many invoices are done electronically, making it easier for both parties to track transactions when compared to paper invoices. 

Many companies also set up recurring invoices for monthly subscriptions or to pay for larger projects in several payments. This gives companies a more consistent revenue flow than lump sum payments. While invoices are pretty straightforward, there are many challenges to keeping an invoice simple.

Common Challenges with Keeping an Invoice Simple

Confusion with Terms

Sometimes customers need clarification about the terms of the transaction. They may question the amount they have to pay or about the goods or services they received according to the invoice. An excellent way for merchants to make sure everything is clear is to provide the necessary documentation along with the invoice. With all this information, it is much easier for customers to understand. 

Wrong Person being Invoiced

It is not uncommon for merchants to invoice the wrong party. This is especially the case when dealing with larger businesses that have multiple locations and divisions. To reduce the likelihood, merchants must keep detailed merchant information. 

Following Up on Overdue Invoices

For merchants that are focused on growing their business, it can be tempting to ignore overdue invoices in favor of new sales. However, this is an error as these outstanding invoices are an additional cost to the merchant and a lost revenue stream. It is so important that merchants have an effective system to follow up on overdue invoices.

Keeping an overdue invoice simple is challenging, as small businesses may have limited resources and team members to follow up. One potential solution is to provide an option for renegotiation of terms. This increases the likelihood of receiving without having to get costly legal fees involved. Additionally, this can give a merchant a reputation as flexible and easy to work with. 

Missing the Marketing Opportunity

While it is essential to keep an invoice simple, many miss the opportunity invoices provide. Many merchants need to put more effort into their invoices, but with digital invoices, it is straightforward to make it a marketing opportunity. Merchants can include videos or valuable links that give their customers extra value and make them want to return and do business

Value of Accounting Software

Reduce Time and Errors

Accounting software enables merchants to automate many day-to-day accounting activities, including invoicing. Keeping an invoice simple is possible with accounting software that automatically includes the necessary information within the invoice and sends it to customers. This dramatically reduces the time merchants have to spend creating and sending invoices and reduces the likelihood of human error.

Additionally, this automatic invoicing speeds up the time merchants are able to collect funds from customers and allows merchants to send customers reminders for overdue payments. Accounting software can also conduct automatic reporting and data tracking. This will enable merchants to access the data they need to make well-informed decisions easily.

Easy of Analysis

With accounting software, merchants can keep track of all their business's finances in one system. This allows merchants to see the whole picture of their finances in one place rather than bouncing back and forth between multiple systems or spreadsheets. 

Tax Filing

It can be challenging for smaller merchants to keep up with all IRS standards for tax filing. Fortunately, many accounting software options enable business owners to track and meet all IRS standards for tax filing quickly. 

Inventory Management 

Just as important as keeping an invoice simple is ensuring that your business has enough inventory. With accounting software and integrations, it is easy to conduct inventory management. Merchants can set up their system to order more of a product automatically when stock gets too low. It also makes it easy to build up reports on which products and services are selling well and which are not. 

Payroll Management

With an accounting integration, it is just as easy to manage payroll as it is to keep an invoice simple. Employee hours and wage schedules can be automatically handled without the merchant micromanaging the system. Merchants can also set up direct deposits for employees that come out on a regular basis. Finally, merchants can leverage accounting software to handle the documentation needed for income taxes and unemployment insurance.

Keep an Invoice Simple with Treati

With Treati, you will get a system that lets you keep an invoice simple and provide you with the best payment solutions. Treati allows you to process all types of transactions and easily access the integrations you need. These include accounting integrations and software enabling you to automate your invoicing process. Whether it's a recurring or one-time invoice with Treati, it is easy to keep an invoice system. 

Additionally, you benefit from our competitive pricing, which saves you money without sacrificing the quality of service. We are committed to providing you with the best service possible and offer round-the-clock customer service to deal with any challenges that arise. 

Treati also provides your business with top-quality security to safely conduct all payments and invoicing from fraud. Our system is also highly customizable, so you have the best payment and invoicing solutions for your business.