Invoice Creation: Common Errors

Invoice Creation Common Errors- Complete Controller

Are you autonomous, and do you have to create invoices often? Does it happen to you that you often make mistakes in the invoices? Sometimes, we are not prepared to do the simplest thing because without going further, creating invoices is a simple task that we do repetitively without thinking, which gives rise to many human errors that can have consequences.

Billing errors can occur out of position in your accounting, generating confusion and doubts in your customers or even making you pay disgraces. In short, making mistakes when making invoices can also be very expensive.

What mistakes happen when creating an invoice? Here are six failures you should avoid. Several shortcomings can sometimes occur in the creation of invoices. These are some of the essential elements.ADP. Payroll – HR – Benefits

Jumps in Invoice Numbers

As you know, invoices must have a numbering. This numbering must be logical and consecutive. It is incorrect that there are jumps from one numbering to another or that we make subsequent invoices with a previous numbering.

Before inspecting the treasury, all these errors can indicate that your invoice book does not collect everything you are invoicing. They may be minor mistakes, but it’s worth not taking a risk.

Billing After Unsubscribing

Invoice creation is a serious matter. If you will unsubscribe as a freelancer, you better make the invoices before and with the correct date. Making post-discharge invoices as a self-employed person can lead to difficulties if the treasury asks you for the invoices since if you are discharged, you can no longer generate invoices.

Some freelancers sometimes unsubscribe during the year when they do not invoice enough and then register to create the invoices. You must be careful since it is not as simple as signing up for a month, billing everything, then unsubscribing, and staying like this for the rest of the year.LastPass – Family or Org Password Vault

Make Invoices Without the Correct VAT

There are different types of VAT: 4%, 10%, and 21%. Depending on the type of activityproduct, and service, one type of VAT applies. It should also be clear that you will not always have to include VAT in the invoice, for example, if you make invoices to other companies in the Canary Islands or an extra EU country.

Also, consider your situation concerning intra-EU countries. To avoid VAT on an invoice of this type, you must register in the Registry of Intra-Community Operators and that your client is also. If you have a European NIF / CIF and your client is in VIES, you can avoid VAT.

Do Not Clarify the Concept of the Service and Product

The product or service you have sold must be clear on the invoices you make. Your client can be clear about what he has bought, and you are asking to present the invoices to the Tax Agency for the case.

If you want clear invoice concepts, it is best to program them correctly. For instance, if the business sells products, it is straightforward to create an inventory with the names of the products and ensure that these appear clear.CorpNet. Start A New Business Now

Do Not Include Personal Income Tax Withholding When Applicable

If you are self-employed, you usually work with companies, which is a requirement by the professional activity you are in. You must include invoices with an IRPF withholding. That means you must apply a -15% withholding tax base, which will be borne by the company you collaborate with.

If you are a newly self-employed person, you can put an income tax withholding of 7% during the first three years, which will leave you, in theory, more liquidity if you do not invoice much.

Wrong Date On Your Invoices

The date of your invoices must be consecutive. You cannot create an invoice of number 071 dated May 15 and then a 072 invoice dated January 1. It must make each invoice within the corresponding quarterly period since you will pay VAT and may have to advance personal income tax; that way, the numbers do not add up.

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