Outsourcing invoicing is new to some small business owners. You may believe that it’s better to generate invoices in the house. However, there are compelling reasons why small and medium-size businesses may want to consider outsourcing bookkeeping and sending invoices.
Get the Invoicing Process Right
Small businesses need invoices paid on time. Typically, you will use this money to pay debts. When cash flow is impeded by outstanding invoices, it may devastate a small company's working capital. Generating and sending invoices can be time-consuming. However, properly designed and efficiently sent invoices may help businesses get paid on time and offer legal protection for all parties involved. If your business gets audited by the IRS and you had been accurately sending invoices, they may substantiate the income you reported.
A properly formatted invoice will detail the financial components of business transactions. It will include the name and contact information of the buyer and seller, a description of the services rendered, and the cost per item. It will also include a due date. Unfortunately, a large number of small business owners fall behind on their invoicing because they have so many other duties to care for. Fusion CPA wants to help minimize the burden of running a small business by offering accounts receivable support that includes outsourced bookkeeping, invoicing, and following up after sending invoices.
Sending Invoices Establishes Legal Rights
Sending invoices prove that products and services have been delivered and establish your right to receive payment. If customers do not pay, the records in your bookkeeping, including contracts on invoices, may be used in the court of law to prove that payment is owed. Conversely, companies that keep copies of invoices that reflect paid amounts to contractors and their bookkeeping can prove that they have completed their contractual obligation for payment.
Protection Against Audits
Despite immaculate bookkeeping, it is possible that the IRS may audit your company. During the audit, they may look at your bookkeeping and review your invoices. If you have been sending invoices that are sequentially numbered, the IRS may have more confidence that you are reporting your income correctly.
The Advantage of Centralized Processing
It can be a challenge for small businesses to monitor hundreds of invoices, especially if they are sending invoices from several departments within the company. Outsourcing bookkeeping services allow a business to have one centralized location for sending invoices, even if invoices are generated by different departments within the organization. Sending invoices from a centralized location can translate into shorter payment cycle times. Data is efficiently processed, allowing for the sending of invoices from sources using different templates within your organization. They will convert invoices that have been forwarded to the outsourcing company into a standard format. Intelligent automation makes it possible to fill in information that might have been forgotten during the invoice creation process, leading to faster approval and payment.
Accounts Receivable Support Offers Customizable Invoice Processing Solutions
Sending invoices can be a time-consuming process. All it takes is a little human error in the data entry and processing of invoices to create backlogs and delayed payments. For this reason, we at Fusion CPA offer outsourced bookkeeping services that can eliminate errors and standardize all the invoices sent by your business. Our approach leads to easy processing and faster approval times. The standardization and centralization of your invoice data make it easy for you to monitor and analyze payment trends as we take steps to expiate payments. Could your time be put to better use if bookkeeping and sending invoices were out of the picture? Are you looking for a reliable one-stop outsourcing solution for your bookkeeping and your payment process? If so, let’s talk. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
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