If you’re a freelancer or small business owner, you’re likely carrying out all your invoicing procedures yourself. As your business grows, your volume of invoices increases. Invoices are an integral part of your business as they are responsible for tracking payments owed and services rendered.
It’s easy to get lost in invoice tracking, confirming prompt payments, and tracking labor hours. When your clientele and business grows, a streamlined invoicing system ensures invoices are dispatched promptly. Invoices that are carried out professionally leave positive impressions on clients, which in turn leads to repeat business and recommendations for your services.
We understand invoicing is meticulous and time consuming, but arguably the most important part of your billing procedures. Invoice Ninja provides solutions to our clients to make the invoicing process infinitely simpler and efficient, allowing them to focus on providing leading services and business growth.
How Is a Purchase Invoice Used?
A purchase invoice, sometimes known as a supplier invoice, provides a list of goods or services that have been purchased from a seller. These invoices typically include: the product or service name, quantity, unit price, total cost of the transaction, due date for payment, and contact information for both the buyer and seller.
Purchase invoices can be used by companies as proof of purchase in order to claim deductions on their taxes. For an auto parts business, these will likely be the invoices you most frequently give to clients. These invoices are ideal for selling parts or installation services as they provide a detailed breakdown of labor and parts costs.
Why Should You Use A Purchase Invoice?
We recommend using purchase invoices whenever parts are sold or labor is charged to a customer. When you provide clients with a purchase invoice for the services you provide, your expenses and stock are accounted for accurately. This not only helps you stay organized with your product stock, but also serves as documentation of proof of services or goods rendered.
The purchase invoice serves as an important accounting record for both the buyer and the seller. Vendors provide clients with invoices so that the client can track their expenses and manage their accounts payable, and auto parts suppliers have records of sales and labor hours (if applicable). Furthermore, should payment be late or incomplete, you will have an indisputable record of outstanding payments.
There are some instances when you would use progress invoicing instead. This is an invoicing system that works by creating invoices at regular intervals during a larger scale project, by emitting separate purchase invoices at different times of purchase.
A purchase invoice provides an easy way to track all transactions made by small businesses or freelancers while providing protection against potential charge disputes. When used correctly and consistently, they serve as an important record of your business transactions.
Effective invoicing improves other areas of your business, such as stock control and tax payments. Talk to us at Invoice Ninja about how we may be able to provide you with a software that takes away the stress of invoicing!