Invoicing made easy: Tips for start-ups and SMEs

Invoicing is a central process in every company that has both legal and economic significance. A correct and timely invoicing process contributes to smooth business operations and secures the company’s liquidity. Invoicing is therefore more than just the creation of the invoice document. It encompasses the entire process of invoicing a company to its customers or business partners, including monitoring payments and communicating with customers about outstanding invoices.

Find out how you as a start-up or SME can make this process efficient and smooth:

1. What belongs in an invoice?

An invoice must be clear and understandable. Make sure that all the necessary information is included:

Company details: Name, legal form, address, VAT identification number and contact details.
Customer details: Name and full address of the customer.
Sequential invoice number, which is only issued once.
Service description: Detailed list of the services rendered or products delivered, including quantities and delivery units.
Date of issue of the invoice and, if different, delivery date (“invoice date = delivery date” is sufficient).
Breakdown of the invoice amounts (net amounts) according to tax rates and tax exemptions as well as the applicable tax rate. The VAT amount applicable to the invoice amount or an indication that a tax exemption applies. The gross amount (total amount) is not mandatory, but is usually stated.
Reference to cash discount deduction, if this is granted.
Terms of payment: Due date and accepted payment methods (e.g. bank transfer, credit card, PayPal).
Payment details: Your bank details and other payment details.
Reference to the obligation to retain invoices for the provision of construction services to private customers (including all construction services).
Legal information: Any necessary legal information, such as general terms and conditions or rights of withdrawal.

2. Clear layout and professional branding

Use a simple and clear layout for the invoice that clearly highlights all important information. It is advisable to clearly divide the invoice into different sections, e.g. customer data, supplier data, invoice details and payment terms.

An invoice is not only a document filled with information, but also a point of contact with your customers. It should therefore not only look professional in terms of content, but also in terms of design. Insert your company logo in good image quality and make sure to use your company colors to make the invoice appealing and brand-compliant. Choose fonts that are easy to read and make sure they are consistent throughout the invoice template.

3. Choose the right tool for invoicing

Choosing the right invoicing software depends on the individual needs of the company. Small businesses often start with free tools such as LibreOffice Calc or Google Sheets. Growing companies often opt for specialized online solutions such as Debitoor or Zoho Books. For full integration with accounting, professional programs such as DATEV or Sage are essential.

4. Automate your invoicing process

Software can take care of the simple creation of the invoice document for you. But the invoicing process does not end there. Highly automated invoicing, e.g. including automatic data allocation, integration of the payment process or an automated dunning process, can increase your customer satisfaction, save you time and money and thus secure you a long-term competitive advantage.

What can an automated invoicing system do?

Automatic data assignment: invoice number, date and customer data are automatically transferred to the invoice document.
Standardized terms of payment and automatic calculation of payment terms.
Integration of online payment service providers such as PayPal or Stripe.
Invoice dispatch: via e-mail or by post.
Status tracking: Fast recognition of open, paid or overdue invoices, e.g. through direct connection to your online accounts.
Dunning system: Overdue customers are recognized and automatically transferred to the dunning process.

Automation with Odoo

With Odoo as your ERP solution, you can significantly simplify the invoicing process. By automating invoices with Odoo Accounting, you save time and minimize errors.

Odoo offers functions such as:

Standard templates for invoices: Odoo contains several standard templates for invoices that already contain basic information and layouts. You can use or customize these templates directly. The software also offers special templates that are tailored to specific industries. These templates are designed to meet the specific requirements and standards of different sectors.
Automatic invoicing: Create recurring invoices for regular services, such as subscriptions
Integration with other Odoo modules: Link invoicing with accounting, your sales department or online store to ensure a seamless workflow.
Interface to DATEV: Odoo can be easily synchronized with DATEV using an export/import interface. This avoids errors during data transfer and unnecessary extra work.
Integration with the online store: Odoo contains a module for your website and your online store as standard. By connecting various payment providers, invoicing can be fully automated with Odoo.
Bank integration: Use the integration of your bank details to automatically track the status of your invoices.
Financial reports: Create regular reports on income and outstanding invoices to get a clear overview of your financial situation.

5. Keep deadlines and dunning under control

To ensure that payments are received on time, you should specify clear payment deadlines in your invoices. These deadlines help to avoid misunderstandings and promote timely payment. An efficient dunning process is also important. Odoo can help you to automate your dunning process:

Automated reminders: Let Odoo remind you when payments are due so you don’t miss any deadlines.
Dunning procedure: Use a multi-level dunning process to effectively reach late payers and take timely action if necessary.

6. Regular review and adjustment

Invoicing is not a one-off process. Review your invoicing system regularly and make adjustments:

Customer feedback: Ask if your invoices are clear and understandable. Direct feedback from your customers can provide valuable insights.
Adapt to legal changes: Keep up to date with changes in tax law and adjust your invoicing accordingly. This will help avoid legal issues and ensure compliance, helping you avoid potential penalties and delays.

7. Strengthen customer relations

Invoicing is not only a financial process, but also an important part of the customer relationship. Transparent and customer-friendly invoicing can strengthen your customers’ trust in the long term. Make sure that your invoices are formulated in a professional and friendly manner and that the terms of payment are communicated clearly and comprehensibly.

Proactive communication: Inform your customers in good time about upcoming invoices or changes to payment terms to avoid misunderstandings.
Accessibility: Make sure that your customers can easily reach you if they have questions about their bill. Good customer service can leave a positive impression and strengthen customer loyalty in the long term.

8. The role of discounts and rebates

Discounts and rebates can be a useful tool to improve your customers’ payment behavior. Consider whether and how you want to grant cash discounts:

Grant cash discounts: Offer a discount on the invoice amount if payment is made within a certain period. This can create incentives for faster payment.
Discount promotions: Use seasonal or time-limited discount promotions to increase sales and strengthen customer loyalty at the same time.

Our conclusion

Invoicing doesn’t have to be complicated for start-ups and SMEs. With the right tools and processes, such as Odoo ERP, you can ensure efficient and error-free invoicing. Make sure to regularly review and adapt your processes to meet the changing needs of your business.

If you need support with invoicing or commercial accounting, don’t hesitate to contact us. Our team of experts will be happy to help you! By following the tips above, you can not only optimize your invoicing, but also strengthen relationships with your customers and ensure the financial stability of your business.