Managing business finances is an ongoing activity and is inevitable to business success. Viewing and analysing invoice reports on a weekly or a monthly basis helps in keeping a track of existing as well potential revenue. These reports can be viewed with the helps of an appropriate online invoicing software. Here are some important invoice reports that a business owner must not miss:
Client Report Client reports give you a detailed analysis of the invoices raised to a particular client in that period. This helps you analyse the revenue being generated from that client in the same period and in the coming future. Grouping the clients into various categories like geographic location or the type of product purchased helps in forecasting the revenue potential for that category.
Discount Report The discount option in these reports helps you analyse the total discount given to the client, as well as the discount offered on various invoices. Discount analysis helps in understanding the average rate of discount being offered to a client. This helps in setting the right level of discounts for that client (in case the client is being offered less or more than the optimal level).
Tax Report The tax option helps in analysing the amount of tax that needs to be collected from that client in that period. This also helps in analysing quarterly tax burden for the company and making sure that company has enough to pay for the same.
Outstanding Report Most of the clients enjoy a credit period but some of them do not adhere to payment deadlines. This puts pressure on the company finances and the working capital. Client outstanding reports help in keeping a check on the total as well as client-wise outstanding payments.
Disputed Invoices A complete report of the disputed and resolved invoices helps in understanding the losses that may incur from a particular client. This improves the accuracy of revenue forecasts and also highlights the reason for disputes with those clients.
Reports of Clients Assigned to Particular Staff Members These reports help in understanding which sales personnel is getting more sales to the clients assigned. These reports also help in analysing which staff member is getting the payments on time and which ones are lagging behind. Staff discussions help in understanding a high number of invoice disputes or outstanding payments for a particular client.
Invoice Aging Invoice ageing reports help in understanding the average number days that have passed after the invoice was issued to the client or the due date. The reports can be generated on the basis of the number of invoices in the said period or the outstanding amount.
The reports help in understanding the number of invoices that are unpaid after a said period say 30 days or more. They also help in knowing the idle invoices on the basis of the amount of the outstanding amount. These reports are essential for prioritising payments and follow-ups with clients. If some invoices become overdue for a really long time then these can be tracked from here and services to those clients should be stopped until the dues are cleared.