Businesses in India, under the previous taxation system, was a bit difficult and complex. It was due to the multiple indirect taxes that the business owners had to pay during the supplies of goods and services from one state to another as well as within the states. However, after the GST implementation, things have been simplifies and the complexity of the multiple taxes have been reduced. Now, there is only one single tax that everyone has to pay who is dealing with the supplies of goods and services according to certain rules and regulations. Timely payment of goods and services is one of utmost importance in any business and GST has made that process much easier and simpler. The success of businesses can be determined with the streamlining of invoices. Having an efficient and accurate invoicing system can speed up the payment processes and help your business to become a more consistent in the competitive market. Government of India has designed GST software with the help of GSPs and ASPs to make the GST calculations easier for the businesses. In this post, we list 10 effective tips following which generating the invoices will become easier. Take a look.
- Collect Accurate Data
Before generating the invoice, it’s important for any business to know the type and amount of work they have done. It’s advisable for the businesses to keep an accurate data of their work in order to maintain the records safe and for easy generation of the invoices that are needed for further GST criteria. Although there are several GST software that automatically tracks your data, still you need to input the correct information.
- Clean and Consistent Format
Although businesses using the GST software for their GST calculation in India are given different formats of invoices, the businesses should consider the ones they can use whichever format suits their business requirements. Generally, an invoice should be simple and must consist the key details and every necessary point that is effective. It should be easy to understand and easy for the reader to go through it.
- Consist of Relevant Information
A proper business invoice must contain all the relevant information such as:
- Order number
- Due date
- Payment options
- Description of product and services
- Total amount
- Delivery Charges
- Details of the GST tax rate and amount payable on the product or service respectively
- Late payment charges and description
- Contact number for any queries
- Quick Dispatch of Invoice
The responsibility of the businesses especially after the GST is that they need to send a quick and responsive bill invoice immediately after the completion of the work or as soon as the services have been delivered. It not only helps you to be in a proper line but also reflects your professionalism. All you can do is settle the reminders so that you are always ready to send the invoices in a timely manner.
- Communication Policies
As we know GST rules and regulations are still unclear to everyone, it becomes important for both seller and buyer to go through all the terms and conditions of any business and invoicing rules before doing any transactions to avoid the confusions. An invoice should be made in a simple manner so that it’s easier to understand for the customers. Make sure the communication policies are clear regarding the late payments and discounts offered in between the seller and the buyer.
- Billing Schedule
Planning a billing schedule for your business is important and helps you in different ways. It keeps your customers ready regarding when to expect an invoice which in turn enables them to make payments on time. Make it a habit of sending and generating the invoice on the same date of every month so that it reduces the chances of an invoice being overlooked by the customer.
- Employ Digital Invoices
GST software has made the GST calculation in India much easier and simpler for the businesses. The entire invoice generation has been changed from manual to digital mode. Now, after the GST, the invoices can be send electronically via email which ensures delivery status and is also convenient for the customers at the time of shifting their premises.
There are several tips following which you can generate effective billing invoices which is easy to understand and contains rules and regulations of the GST. All you need to do is to send the invoices to the customers on a timely basis. Make sure your business invoice contains all the essential information that is required including the multiple payment options and their deadlines.