Invoicing: Your guide to efficient accounting!

Invoicing, as an essential part of accounting, faces a multitude of challenges that accountants face on a daily basis. From the complexity of international transactions to the management of incoming payments and the automation of processes - invoicing harbours numerous hurdles that need to be overcome.

In this blog post, we take a close look at the various difficulties faced by accountants and the solutions that help to ensure a smooth and efficient invoicing process.

Table of contents - What you can expect:

What is the difference between invoice & invoice?
What mandatory information must an invoice contain?
What are the advantages of invoicing with ZEP?

What is an invoice?

Invoicing, originally derived from the Latin ("factura"), encompasses the entire process of Invoicing. This includes the correct issuing and posting of invoices as well as the dunning process. There are two types of invoicing:

1. Subsequent invoicing after service provision
2. Pre-invoicing before service provision

This process is part of receivables management to ensure appropriate payment for your products or services. The generated invoice serves as the basis for accounting and includes various document types such as invoices, receipts and own receipts.

What is the difference between an invoice and a bill?

The difference between a billing document and an invoice lies mainly in the way they are understood and used. An invoice is the generic term for the entire invoicing process, while an invoice is a specific document within this process.

What is an invoice number?

An invoice number is a unique identification number that is assigned to a specific invoice, which is why it is also known as an invoice number. Invoice number is labelled. It is used to identify the invoice and distinguish it from other invoices.

The invoice number is usually assigned by the company and can have different formats and number ranges depending on company practice. It facilitates the administration and tracking of invoices for both the company and the customer.

Requirements for an invoice at a glance

The components of a legally correct invoice are listed in §Section 14 (2) no. 2 of the Value Added Tax Act regulated. The following checklist shows you which mandatory information must be included on an invoice:

• Full name and address of the supplier and the recipient of the service.
• Tax number or VAT identification number of the supplier.
• Date of issue of the invoice.
• Consecutive invoice number to identify the invoice.
• Quantity and customary designation of the delivered goods or scope and type of other service.
• Time of delivery or other service.
• Itemised payment for the delivery or service and agreed reductions in the payment.
• Applicable tax rate and amount of tax due on the consideration or reference to tax exemption.
• Reference to the recipient's obligation to keep records (only in certain cases).
• For credit notes issued by the service recipient or an authorised third party: Specify "credit note".

Create an invoice: These are the advantages of invoicing with ZEP!

Even for experienced companies, the administration of invoices and Invoicing can be a complex and time-consuming task. ZEP offers you a wide range of functions aimed at optimising your accounting processes and minimising the workload:

• Efficient billing options: ZEP offers a wide range of options for billing services correctly, whether for individual or multiple customer projects, hourly/daily rate billing or fixed prices.
• Detailed invoicing: Project-specific detailing of your invoices down to individual employees as well as the attachment of precise time data and receipts.
• Simple invoice programme: From instalment payments to final invoices and support for incoming credit notes - ZEP offers a wide range of functions.
• Planning and memories: Planning of invoicing already during project creation. ZEP also reminds you of expenses that have not yet been invoiced.
• Quality control: Four-eyes principle for checking and approving invoice items by project management for additional security.
• Transparent evaluation: Diverse insights such as invoice items, open items, sales forecasts and overall status of the invoice.
• Customisation to customer needs: Support for different invoice formats, currencies and configuration options such as sending invoices by e-mail or defining payment terms make ZEP flexible and customer-orientated.

If additional functions are required, our Ticket system for efficient communication with customers and employees. Alternatively, you can use the module Document management to organise your documents in a structured way. ZEP also offers a comprehensive solution for Project time tracking and an intuitive Software for recording working hoursto improve your work processes.