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About admin

Veronika Tondon is a business enthusiast with extensive experience in Invoicing & Payment Process. She has 6+ years of experience in Invoicera, the leading cloud-based invoicing solution as Invoicing Consultant. Sound knowledge in business process execution, offers end to end solutions for complete automation of business processes and AR/AP processes. Contact Veronica for your invoicing requirement.

benefits-of-mobile-invoicing

5 surprising benefits of Mobile invoicing

 

2018 has been the year for economic growth. With advancement in technology and boom in the economy worldwide, there has been a certain increase in cash flow. Mobile invoicing have expanded significantly with the increased demand of online invoicing, in simplifying businesses, improving connections, reduces cost savings, strengthening buyer-supplier relationships at a rapid pace. The mobile invoicing app helps you simplify the process of online invoicing and increases scalability on the go. You can create estimates on-demand, follow up on latest project updates and invoice customers right on the spot. The online invoice app is the fastest way to get you paid within the fraction of seconds.

 

According to the recent stats;

 

40% reduction in the cost savings with invoicing app, expecting the increase in the number of the customers, suppliers and business processes.

 

Here is the list of benefits of how mobile invoicing app will make your life easier:

 

1) Faster payments:

real-time-tracking

An online invoice solution makes your invoices more instantaneous. Online invoicing leads to faster payments by quick processing of the entire invoicing process. The invoices generated with online invoicing tool/mobile invoicing app automatically sends and influences your client to pay their bill more quickly.

 

2) Standardize your billing process:

 

Invoicera, the best online invoice app eliminates additional invoicing steps, minimizes errors, and builds greater insights and transparency on the move. The online invoicing apps are designed to focus on the interoperability of the business finances. Invoicera’s mobile invoicing app lets you manage your business on the go and never miss a moment. You can access dashboard and reports wherever you are Find the business invoice app solution that builds your business on a good reputation. It allows to Standardize personal touch to your invoices i.e. logo, payment terms, thank you note.

 

3) Better data management:

Online Invoice App optimizes the flow of information from initiation to completion. Now you can focus on other important tasks rather than worrying about administrative burdens. On the other hand, sending and tracking of the invoices seems to be tedious when away, this is why small business owners are making a change to mobile invoicing.

 

4) Increases trust, confidence, and satisfaction:

The business invoice app provides easy access to information in real time. This creates greater customer satisfaction and guaranteed security to the customers anytime anywhere. When it comes to matters of trust, confidence, and satisfaction, mobile invoicing helps to build long-term relationships with your clients and customers.

It is a more convenient way for your customers to pay and improves relationships with your customers.

 

Read More: 6 Reasons Why Mobile Invoicing Will Make Your Life Easier

 

5) Streamline your entire billing processes:

 

Inquire about the available integrations when selecting your mobile invoicing product. The best online invoice app automates and streamline your billing finances and provides the most useful insights in planning the growth of your business. The business invoice app gets you access to every piece of information from any of your authorized devices.

 

EndNote:

 

Choose the best mobile invoicing tool that helps to manage your finances in a better way. This means business invoice app like Invoicera provides faster, efficient, safe, user-friendly solutions that will work for you. Grow your business by driving your invoices faster.
The mobile app integrated with invoicera is one of the easiest online invoice app that is made to bring your entire invoicing experience fit in your palm. The data stored in cloud can be accessed anytime anywhere with the help of the app. Now, no more worry about the big account books, they have been compressed to fit in your palms.

Go Ahead and Give it a Try! Download the app anytime you want.

 

 

Purchase-Discount--Sales-Discount

Difference between Purchase Discount and Sales Discount

 

Discounts are an integral part of the entire sales and marketing process. There are two types of discounts in sales and marketing:- purchase discount and the sales discount. These discounts vary in terms of who receives them and why, but they’re also connected in such a way that intelligent marketers can use both to increase revenue and profit.

What is a sales discount? It is more likely that people will walk into a store if they knew that there was a discount on the products the store sold. A store that sells branded clothing is usually pretty empty until they put up a sign saying that they are offering up to 50% off on their clothes. But, of course, they are not doing this out of the generosity of their hearts; there is something in it for them too, as giving discounts is an integral marketing strategy for retailers and wholesalers.

 

The Accounting Difference between sales discount and Purchase Discount

 

 

Sales Discount:

 

Amongst the variety of discounts offered in any market, the one most widely used is the sales discount. It is the kind of discount we are most familiar with. A sales discount refers to reduction in the price of an item or product that a customer buys from a retailer. Imagine walking into a Levis store and finding that the jeans that you wanted to buy were marked down by 30%. That would be a sales discount.

Sales discounts are offered for a variety of reasons. Retailers might want to move new products into their outlets, and thus, will reduce the prices of the old merchandise in order to get customers to buy it. If the season for a particular type of clothing is over (winter clothes, for example), then they are typically put on sale. Bigger brands might want to seem attractive to a wider market and could, therefore, offer big discounts in order to seem more affordable. Some retailers might just offer discounts because they themselves have received purchase discounts. Getting a purchase discount also encourages the retailers to offer sales discounts to their customers.

 

Purchase Discounts:

 

 

Individual customers are not the only ones that get discounts. Purchase discounts are the reductions that retailers and stores get from their wholesalers. Purchase discounts offered to stores can depend on variety of factors such as size of order, a cut in prices of raw material, etc. These supplier discounts are usually offered because the retailer buys products in bulk, or for early payment of an invoice. For example, for a sale worth 100 rupees, a supplier might let the retailer pay 20 rupees less if the retailer agrees to pay within 5 days. If the retailer pays at a later date, the purchase discount gets canceled.

 

The grander (marketing) scheme of things across Sales Discount and Purchase Discount

 

As mentioned earlier, in any business offering discounts is an integral part of their marketing and sales scheme. Wholesalers want their goods to be bought in bulk, and to be paid early. Retailers mark down their products when they want to get rid of the old stock and replace them with new inventory. They wanted to attract more customers with their seemingly affordable prices. One of the most important reasons that discounts are offered is to generate consumer surplus.

Simply put, consumer surplus is the difference between what customers are willing to pay for goods or services, and what they do pay (i.e. the market price). Occasional customer surplus is a positive business strategy as it makes them think a great bargain.

 

Getting purchase discounts allows retailers to offer sales discounts and thus, keep their customers satisfied.

 

CONCLUSION

 

Finding a way to increase sales revenue and further decreasing costs to churn out more profits from business is important for any business. One can use online invoicing tools to improve business productivity by managing tasks and efficiency. The ability to calculate financial reports with the help of an online invoicing tool like invoicera helps a business to take relevant finance related decisions on time and even allows it to forecast finances well before time.

Choose a tool like Invoicera to automate your business process and manage clients more efficiently.   The invoicing platform consists of supported features from project/task management, purchase order, estimate management,  expense management, financial reports, time tracking, Credit Notes,  staff management to Custom workflow management and more.

 

 

best-online-invoicing-software

Unveiling The All New Invoicera Features- Easy Invoicing!

The tremendous growth in user base is direct indicator of how much love Invoicera is getting. We know how much you love Invoicera and it continuously motivates us to bring the best user interface for you all. And this time, it is big and beneficial. This time we have planned and added up some exclusive features to make the overall functionality of online invoicing software easy.

Now let’s have a quick view on latest added features:

 

1) Authorised Social Signup

 

 

The use of social signup will make the registration- or subscription
process easier, and therefor faster. With multiple accounts, it’s
difficult for you to remember all of their login information. With
the use a social login, you don’t have to remember new login information and accessibility becomes easier.

DON’T WORRY YOUR INFORMATION IS STILL 100% SAFE!!!

 

2) Refer & Earn

 

 

It is your chance to Earn a Fortune! Refer and Get 30% commission for
lifetime. Simple enough! If you believe Invoicera can help people in
their respective ventures, be our partner. Let your friends know our
worth. You just got to refer us to get flat 30% commission for each
referral lifetime. See, it’s indeed so simple!

 

3) Now you can “CLOSE” Expense tab manually!

 

 

It will help you to mark expense complete/close manually. If there is an
service/item which includes all additional expense cost. In that case
you don’t want to process expense as a invoiced or paid because you
invoice the client for the flat-rate Item, and they pay it. Now you want
to change it to be marked as closed. Now you can easily marked expense
as “Closed”.

4) Add address fields i.e City, State, Zip code in clients create popup.

 

 

Now, you can easily add and segregate clients on the basis of address like city, state and Zip code.

 5) Add Email activation, System setting popup.

 

 

We work hard to make the interface 100% secure and carrying on with the same responsibility we have worked on to reduce fake users. Users need to verify their valid Email ID in order to complete their authentication process and further use the software.

Now, Get! Set! Going! Make the best of your business.

 

 ABOUT INVOICERA:

Invoicera is one of the leading online invoicing softwares in the industry. With more than 3 million users it has been growing leaps and bounds. Invoicera is a 360* online invoice management software that apart from just managing your basic needs of invoicing, also, helps in managing your day to day business activities and make growth a prominent step.

 

Online-Billing-Software

Staff Management Software

The Importance of Staff Management Software in an Office

 

In an organization like yours that works with internet day in and day out, there should be nothing pulling you back to go one step further and using technology provided to have optimum utilization of resources.
Management of employees is one of the major responsibility when it comes to delivering results for the set goals. It is the efficiency of the work that makes all the difference. Under piles of workloads, meetings and appointments, it often becomes reasonably difficult for a manager to keep a track of all the employee activity and hours. And, to provide feedback and encouragement for further growth.

For any organization it’s human resources are its biggest assets and using their potential to fullest holds utmost importance. Adopting latest staff management software that handle the management of challenges, employee dissatisfaction and tackles time constraints then takes a major role.

 

Was the idea ever successful? Yes!

 

As once said by the Jelly Belly Candy Company of California, their secret behind making the best candies is their satisfied workers. The organization takes high interest in maintaining their employee satisfaction rate and then the performance.
The idea here is simple, keeping transparency in system reduces chances of any kind of conflicts. An automated online staff management software helps you to easily evaluate performances and then decide for accurate performance appraisals.

 

How an online staff management software works?

 

staff management

 

1.It helps you maintain a database for all your former and current employees.

It helps you manage a complete database with searchable and secure records that includes every detail related to your employees such as- personal details, bank details, emergency contacts, and performance, etc.

 

2. Forget the hassle of working with paper

The efficiency in staff management software helps you to manage their timesheets and documents. It allows you to further keep a track of all the data to audit or improve submissions and requests. Therefore, reducing the unnecessary need of paper.

 

3. Keeps record of time and attendance

A quick look at all the records to track absenteeism is how an online staff management software helps you to manage work and staff efficiency. This way you can help your employees to be more responsible towards work and stay highly unctual with work and meeting deadlines.

 

4. Calculating Rewards

With an online staff management software, you can easily access reports and then calculate employee performance based on which you can decide their rewards (financial or non-financial)
The transparency in an online staff management software with Invoicera lets you give access to your employees to view their reports and stay motivated and keep going.

 

5. Management Of Expenses

One of the most incredible feature of this online invoicing software is that it allows the staff members to record and send any official expenses they have done and get it reimbursed. A transparent database allows effective communication.

 

6. Payroll

It allows you to easily generate payrolls depending upon the hours logged, with just a click of a button.

 

7. Management of Assets

Assigning of assets to employees or even keeping a track of every valuable asset, with a staff management software it can be done easily in a single dashboard.

 

8. Delegation of Work and Shift Planning

In an organization like yours, that believes in perfect timesheets for smooth functioning. A tool that schedules staff timings, shift planning and automatically informs employees can prove very effective.

 

9. Progress Tracking of the Company

The continuous and automatic collection of information in the database of Invoicera’s system lets you keep a track of all the activities without have to worrying about filling sheets day in and day out.
It relieves you from spending time to accumulate data and managing if offline. A completely segregated and managed data helps you to have a quick access.

 

Benefits of Employee Engagement and Satisfaction

 

1. Providing constructive feedback

Not actually any employee or manager looks forward to a performance review. Surveys have shown that employees often dread yearly performance reviews.
An online staff management software allows senior management to keep a control over activities and provide frequent constructive feedbacks to employees. A configurable dashboard helps in managing the entire staff management system and helps setting the workflow of the company better.

 

2. Setting goals and motivating employees

With an online staff management software it becomes easy to manage employees and reminding them of their goals and tasks. It helps employees to work freely without being under constant observation of HR and senior management.

 

3. Better accessibility and Transparent communication

Increasing workloads lead to time constraints and clashing schedules giving rise to chances of conflicts. Therefore, hampering the work environment. In order to avoid same and keep a healthy and flowing work environment, a secure system with online management of staff works most effectively.

 

4. Healthy employee-manager relationships

An online staff management software helps you take away all the extra pressure of management and, thus, observe a healthy relationship with your employees.
It encourages a low stress work environment and helps increase productivity at work and reach organisational goals.

 

CONCLUSION

A staff management software gives access to an organization to ample tools for better management, while simultaneously focusing on employee satisfaction and engagement.
If used to its fullest potetial, employee management software provides a company with an automated, efficient management system and a healthier work environment.

 

 

 

expense-management

7 Key Expense Management Best Practices

 

Many organizations these days are investing great time and efforts in expense management best practices to keep a clear track of all expenses and keep them manageable to business’s financial extent. A precise and timely reporting of all expenses is important for seamless expense management process.

For people who don’t understand it’s the itemized list of all travel expenses with travel dates, purpose etc details that employees need to submit to the organization, to ensure reimbursement of these expenses.

Here are a few simple and effective expense management best practices that you can implement in your organization to witness the visible changes.
1) Clearly define your expense management policy

With a clear and unambiguous policy, you can start the expense management process in your organization. The policy needs to include all employee reimbursable expenses and should adopt measures to exclude personal expenses of employees. The expense management policy needs to be communicated to the employees and they need to learn what process they need to follow to report their expenses to the organization.

 

expense-policy
2) A well-defined expense report program

There should have a clear guideline about which expenses are applicable for reimbursement and which could not be included in the program. The expense must be associated with the business and it should not be a personal expense. The reimbursable expenses must be incurred while performing duties on behalf of the organization.

3) Keep a simple and clear policy

Many times employees fail to understand the expense management policy implemented in the organization and this makes the task of business expense report rather challenging. This is the reason why you need to keep expense management solutions simple and unambiguous so that it won’t restrict employees from reporting on time. A complex process with a multi-layer approval mechanism may prove more time-consuming and may waste precious man-hours.

4) Keep it short & crisp

You have to reimburse expenses that don’t mean and ask a comprehensive detail of each expense from your employee. Ask for relevant details only, and this will help in the accuracy of the expense reporting. There are free expense report tools that could be integrated into the financial system of an organization for fast and efficient expense reporting.

 

5) Simple submission of expense reports

The organization should provide employees a simple way of submitting their expense related reports. A paperless expense reporting will prove more accurate and speedier in comparison to paper-based reports. There are receipt scanning applications that one can use to secure receipts in the paperless mode, even while traveling. Besides, one can use his/her smartphone to take a snap of the receipt and use it for the expenditure report submission process in a paperless and green manner.

6) An on time payment mechanism

When you seek a timely submission of an employee expense report, you need to have a system in place to reimburse the expenses in a timely manner too. For this, you need to remove the multilayer approval process and administrative bottlenecks. It’s always appreciable to stick to a fixed timetable for approving reimbursements for the submitted expense reports.

7) Implementing global expense management solutions

There are professional  online expense management solutions that can make the task of expense reporting and online expense management solutions smooth and hassle-free. With integrated features, such a system will allow timely submission of business expense reports. Since the system could directly be integrated into a company’s financial system, there is hardly any need to key in the data related to business expenses. Importantly, such expense management solutions come with adorable features that make the task of managing business expenses fast and efficient.

IN THE END:

By streamlining the expense reporting system, an organization can better include all those expenses that may qualify for a tax write-off as per the IRS guideline. This is one important advantage that an organization should never ignore that it would achieve after implementing expense management best practices, besides saving time and money and elevating the internal processes within the organization. Moreover, there are expense management solutions available online and to be accessed by mobile devices that can improve efficiency and encourage cost savings too.

Using the expense management best practices enables to effectively handle expenditure according to your company’s needs and employee’s needs.

 

GLOBAL EXPENSE REPORTING SOLUTION: INVOICERA

The automated online expense management software is an easy and cost effective solution for businesses to manage expenses and analyse profit, loss and cash flow. Get a detailed overview of financial performance and efficiency of people working on billed, unbilled and internal projects. Invoicera offers a complete online invoicing and expense management solutions for your business. Trusted by more than 3 million users, Invoicera is becoming one of the widely preferred online invoicing tool. Built in features like estimate management and staff management are helpful in managing day to day business activities.

 

Expense-Management-Software

Pro-forma-VS-commercial-invoice

Pro forma Invoice Vs Commercial Invoice

 

Pro forma invoices and commercial invoices are key to business for import and export businesses. These are the two very important documents while dealing with clients. Every time there is business deal finalised the buyer has to send in a purchase order to the vendor. He could also open a letter of credit.

Before the buyer can issue a letter of credit to the vendor, he has to send a pro forma invoice to the buyer. This document contains all the necessary information and terms pertaining to the sale.

 

Pro forma invoice is the document that shows a commitment on the part of the seller to sell the goods according to the pre-decided terms and conditions.

 

Once a pro forma invoice is issued to the buyer, he has to issue a purchase order. Once the seller receives the purchase order, he gets a confirmation to send the goods. He now ships the goods to the buyer along with a commercial invoice. The commercial invoice is more like the legal document of the actual sale.

This document is used to record the AR for the seller and AP for the buyer.

In some countries, pro-forma invoice is accepted in lieu of commercial invoice to process import customs procedures to release cargo out of country.  

 

You can also know the difference between a purchase order and an invoice.

 

Importance of online invoicing software for generating pro forma and commercial invoices:

 

Choosing the right online invoicing software is crucial for managing your pro forma and commercial invoices. Invoicera is a very useful online invoicing software which helps with sending online pro forma invoices and commercial invoices. You can easily use the estimates feature of Invoicera to send in your pro forma invoices. The complete payment cycle of your import and export business can be easily managed using this helpful tool.

Invoicera is one of the widely used online invoicing software and helps you easily create, send and manage invoices and pro forma invoices. The cloud based online accounting softwares lets you easily manage invoices and cash flow. The mobile app support lets you access the data anytime and anywhere conveniently.

Apart, from just creating and sending invoices, it also helps in easy management of day to day business activities. The in-built features of staff management and automated currency conversions let you know about the currency profits and losses easily.

 

 

Online-Billing-Software

cashflow-Management

8 Quick Ways to Improve Cash Flow of Your Business

 

Effective management of cash flow is important for an organization to smoothen out financial ups and downs. A healthy cash flow helps you to easily forecast finances and have hurdle free business rides. The toxicity in cash flow management can cave paths to derail even a profitable company.

Startups and Small businesses have always been suffered by late payers, debtors and defaulters. Focus on better cash flow management to reduce the brink of the cash squeeze and steadily grow the business.  Considering that this particular subset of clients continue to make life difficult for entrepreneurs, here are some tips for effective cash flow management.

 

Cash flow and profits are two different terms. You can have a profitable business, but a negative cash flow. So take time to analyze your business’s cash flow as soon as possible and make changes that will have a big impact on your cash flow.

 

credit-score

 

  • Analyse Your Credit PracticesIt is always important to follow sound credit practices, especially while dealing with a new customer. Conducting a trade reference and a bank reference is helpful to know the credit worthiness of your new client.

 

  • Invoice Promptly – Make sure to invoice your customers without any delay. The faster you mail an invoice, the faster you will be paid. If deliveries do not automatically trigger an invoice, establish a set billing schedule, preferably weekly. All invoices should include a payment due date along with invoice notes and terms and conditions.

 

  • Follow up on Default Payments – Don’t allow an invoice to remain overdue for a very long time. As soon as a bill becomes overdue, call the customer and ask when you can expect payment. Ask delinquent customers with genuine financial problems to try to pay at least a small amount periodically. When necessary, don’t hesitate to seek professional help from an attorney or collection agency.

 

  • Offer Trade Discounts – Offering discounts on prompt payments is a widely used technique to encourage customers for making timely payments. Given an incentive, some customers will pay sooner rather than later. Trade discounts typically give 1% – 2% off the total amount due if customers pay within a certain no. of days.

 

  • Deposit Payments Promptly – It is always a healthy business sign when you have optimum working capital available. And sooner you make a deposit, the sooner you can put the money to work for your business. This speeds up your business cash flow and makes funds available for daily expenses.

 

  • Review and Reduce Expenses – If you’re not sure an expense is necessary, hold back until you are confident it will have a favorable impact on the bottom line. Reduce operating costs such as switching from a weekly to a biweekly payroll to reduce payroll processing costs. Be careful not to cut costs that could hurt profits. For instance, rather than cutting the marketing budget, redirect the money to areas where it has a more positive impact.

 

  • Pay Bills on Time – Even though you are required to pay for your bills on time, you can take the liberty to pay as late as possible but only to an extent where you do not incur late fees or interest charges. Exception could be made for bills where trade discounts are offered.

 

  • Manage Inventory Efficiently – Inventory management is essential to maintain proper cash flow. Less cash tied up in inventory would invariably result in better cash flow. Also, make sure to order for additional inventory when current inventory level is down to bare minimum.

 

TO SUM UP

These tips could prove very helpful for startups and small businesses in keeping the money flowing and healthy management. Cash flow management is an important part of the business cycle. Every strategy mentioned above helps you maximize the cash flow and provide streamlined benefits at each business step.

 

HOW CAN AN ONLINE INVOICING SOFTWARE BE HELPFUL ?

Adding more power to your business is always a good idea. Improved cash flow, and data security helps to enhance profitability through substantial gains. Using professional Invoicing and billing software like Invoicera helps to keep track and report on key business metrics.

Get the right mix of invoicing as well as business management features combined with attractive pricing scheme. Also, one of the key features unique to Invoicera is that it provides fully automated account receivable and payable management. Handle the business metrics like a pro with proper online invoicing solutions. SIGN UP TODAY TO SHIFT TOWARDS THE WORLD OF ONLINE INVOICING.

 

Accounts payable vs accounts receivable

Difference Between Accounts Receivable & Accounts Payable Management

 

An item purchased by one organisation is sale for another. Both the companies will record the same transaction differently in their books. While one will fill it as AP (Account Payable), the other will record it in their AR (Account Receivables) section. Account payable are recorded when a company has to make payments, whereas receivables are their revenue from sales.

On the balance sheet of a company, the accounts payable are managed as recorded liabilities and the receivables are recorded as the assets owed by customers.

For a small business, management of these records is one of the important factors to maintain the income and release of money. Somewhere, the record management plays vital role in maintaining reputation of a company in the market. Both the accounts receivables and payable management records have their different significance in business world.

For non-professionals, here is a detailed differentiation between accounts Payable and Accounts Receivable management –

 

What does account receivable and account payable refer to?

 

Accounts Payable management

 

accounts payable vs accounts receivable

 

It’s a process of maintaining a record known as AP sub- ledger (balance sheet of company) to keep track on money that is owed by a business to its suppliers. It is different from notes on payable liabilities, which are debts formally created by legal instrument documents. The amount is firstly recorded at the time when the order is been vouchered for the payment. The term vouchered refers that invoice is been approved by the company for manual payment. Other than the approval, the order needs to be recorded on the AP general ledger in the category of trade payables, for the purchase of goods or for availing the services.

 

Accounts Receivable management

 

accounts receivable vs accounts payable

 

Basically, it is a type of record that companies use to maintain in order to keep track on money they owe to their clients whom they have been served in terms of invoices. AR Ledgers – is the term that is been used to refer those records in business world. It is considered as a legal term that enforces any of the business organization for payment to the service provider or the vendor who have served. Accounts Receivables is the amount that a company use to claim from their clients for services they have provided or goods been supplied on order. AP record of one company is AR record for the other. For fairer deal, it’s important that a product which is been sold or purchased through invoice is enlisted on both.

 Read: Top 5 Ways to Effectively Optimize your Accounts Payable
Records on ledgers –

 

Accounts Payable Management –

 

  • The purchase a business has made
  • The amount of money payable for services and goods the company ordered, including other costs.
  • The total amount payable in the end of the month with additional charges for debtors
Accounts Receivable Management –

 

  • The sales a business has made through invoice
  • The total amount of money that the company claims for goods or services, including other charges
  • The variation of amount owed at the end of the month for debtors
Payment terms –

 

The amount that one pays is received by the other as the cost of service, company has offered. That is the reason the payment terms are same for both. Thing that differs is – the product recorded in AR ledger will lead to inflow of money and if it is in AP ledger then it will lead to outflow of money.

Other than that, the basic term that both Account payable and Account Receivables has to obey is “Net 30 days”. This term implies that the payment is due at the end of the month or 30 days, from the day the order is placed. After that, the debtor fee is applicable on the payable or receivable amount.

The payable company has no restriction for paying the debt amount before debt date. It’s up to receivable business organization whether they want that debt amount from the payable organization or are offering concession according to the terms they agreed at the time of invoice.

In case of early payment to receivable business organization, the payable company is sometimes offered with discounts. This is applicable in special cases when the service provider has declared in advance or just want to have a long-term relations with that business organization for mutual benefits.

 

Duration Analysis –

 

The service providers maintain a detailed debtor book, which is categorised as – 90 days, 60 days, 30 days, current or longer. As a client orders something, they use to analyse that client by categorising them according to payment terms. Same record is maintained by payable companies to categorise the service providers according to quality of services.

 

CONCLUSION

Here we conclude that account receivables and payable are interrelated records and maintaining both is highly necessary. As an organization keep a close eye on cash flow makes many other tasks run smoother. All the above mentioned differences clarify the need of better management for healthier business relations.

Invoicera is world’s most powerful online invoicing and billing software. It offers customised accounts receivable & accounts payable solutions to more than 3 million businesses associated with it. Dedicated spreadsheets make offline cash record easy apart from the online automatically added records. It helps you easily access important information how and when you like with the help of an integrated mobile app.

 

accounts payable and receivable

 

Ways to Start a Business With Almost No Money

 

You are all excited to launch your new venture, or maybe it is just an idea germ right now. But the idea of launching your own business is as fascinating as it can ever be. You are at a position where you are ready to take all the risks right now. Leaving your job or any other personal major change are a little less of a hurdle than the one hurdle you are currently seeing in front of you. So, the one major hurdle that is stopping you right now is that you don’t have enough money.

The least amount of money available might look like a major hurdle initially, but it should never stop you from working hard towards your dreams. It is completely possible to start and grow your business with almost no money in your pocket. It just requires you to take a few careful steps and check on wherever you can keep a strict control.

 

In order to see the necessity of money for the business and ways to start business with almost no money, we need to first understand the the basic of why a business needs money.

Why any business requires money?

 

Let us first have a look at why at all a business needs money. There is never a uniform amount of fee that a business needs to start with. It solely depends upon the kind of industry you are planning to enter into. All the other expenditure further add to it. You can never actually calculate the exact money that will be required, initially. But, a fair amount can be estimated by calculating all the initial investments that you will be required to do. Depending upon the same, then you can start your research to find out more cost friendly alternatives.

 

Consider the following uses:

  • License and permissions: it depends on the area you are considering to work in.
  • Supplies. The kind of raw material you would require to start your manufacturing/activities.
  • Equipment. Is there a need of specialised machinery or software?
  • Office space. It is one of the huge cost incurred and you can’t neglect basic facilities like Internet, utilities costs, janitorial services.
  • Legal fees. Check for the legal formalities and fees you need to pay.

 

With that understanding, you have three options here to lower down or completely cut the costs initially. In order to attain the same you have three options here:

 

1. Reduce your needs

The first and the foremost change that you can bring in is, the change in your business model.  For example, instead of straight away renting a place for 50 employees ( keeping in mind your future growth), you can rent a small place initially. Or to save maximum of this cost you can start working from home , if feasible. You can even do your homework to find cheaper sources of supplies, or cut out entire product lines that are too expensive to produce at the outset.

There are a few expenses that you won’t be able to avoid, however. Licensing and legal fees will set you back even if you cut back on everything else. According to a study conducted by SBA, many small ventures get started on less than $3,000, and home-based franchises can be started for as little as $1,000.

 

2. Warmup

The second idea includes as the period of warm up for the business. Here, instead of directly going into full fledged business activities, you can start with basics. Try and start with a niche, smaller audience and little less profits. If you can manage to start a self employed company, you will then be able to reduce some massive initial costs. Once you start realising some revenue, you can invest in yourself, and build the business you imagined piece by piece, rather than all at once.

 

3. Management of Funds

Management-of-Funds

 

Your third option is all about getting funds from outside sources and managing efficiently to get the maximum benefits with almost negligible amount of money. The importance of management of funds lies in the core of your understanding on to how to take steps towards growth. While starting a business with almost no money makes the importance of judicious use even higher. You have to carefully spend each penny you have in order to have sustenance. Online invoicing software and expense management tool have become a go to tool for businesses. Startups and freelancers are following and using these tools to have effective management of the cash flow. Online invoicing softwares keep a track of all your account payables and receivables and give you a detailed synopsis for further evaluation. Being a new freelancer it is hard to professionally send your communications and invoices, as you lack experience. But, at this stage when you cannot bear to look amateur, taking the guidance from online invoicing tools can do the 100% efficient job for you. Apart from just formally sending out the invoices and communication, it also helps you manage business activities on day to day basis.  

Read More: 3 Easy Finance Management Tips for Small Business

CONCLUSION:

Idea gives birth to the business, but efficient supply of funds help you nourish your germ of idea into a full fledged revenue generating business. Not all have the privilege of efficient funds for the business, but this should never stop the great idea from finding its way to success. Here in this blog we have tried to sort out some of your business needs and how easily you can avoid them at the beginning. It doesn’t count in which stage of the business you are in, but when you learn the art of efficiently managing business funds and generating maximum profits from it. Managing funds is important and to make this complex task easier, available online expense management tools help you in no time. Make sure you check out Invoicera, World’s top online expense management tool for effectively managing your invoicing and expenses. The free online invoicing software is made carefully to alter your burden on finance management.