What is bill management? Efficient invoice management process

Bill management is one of the important activities in the business process of any business. To do this work effectively, businesses need a professional invoice management and storage system, ensuring accuracy, speed and time saving. Read the article below by Vindoo to learn more about it!

>>>> Find Out About: Electronic invoice software

What is bill management?

Bill management including the registration, collection, backup and preservation of invoices on the archival system. For sellers, this process includes generating, invoicing, and processing payments for the purposes of financial management and accounting of the business.

Through invoice management and reconciliation, businesses can easily look up, compare and extract detailed information about financial transactions performed. At the same time, businesses can also capture the internal financial situation more comprehensively and accurately.

Strictly manage invoices to help businesses clarify revenues and expensesStrictly manage invoices to help businesses clarify revenues and expenses

>>>> See More About: How to write a reduced adjustment invoice, increase VAT, revenue, tax

The role of bill management

Invoices act as commercial document, but invoices can also be used as accounting or tax documents. Way management Efficiency brings many important benefits to businesses as follows:

  • Optimize resources in terms of time, human resources and opportunity costs.
  • Support the process of looking up and verifying invoices, making data processing quick and easy.
  • Enhance billing and finance processes by ensuring that invoices are paid on time and helping to keep your finances under control. This improves cash flow management and financial decisions in investing and growing.
  • Ensure transparency in business activities of enterprises.
  • Protect against the risks of invoice storage, prevent loss or damage due to fire or malfunction, and meet legal requirements related to financial transactions.
Invoice is considered as a commercial documentInvoice is considered as a commercial document

Bill management process

Basic invoice management

Steps Invoice Management It is necessary to ensure the accuracy and close linkage between the stages to achieve maximum efficiency. Here is a basic process to help businesses do this work logically and effectively:

  • Create Invoice: Provide complete information (seller, buyer, order number, etc.) to create an invoice.
  • Adjust and issue invoices: Edit the information on the invoice to match the contract or customer's requirements, then issue the invoice to the customer.
  • Store invoices: Record in books or backup to the enterprise's system to look up when necessary. This is the basis for controlling financial accounting activities accurately and effectively.
  • Make invoice reports: Make periodic invoice reports (weekly, monthly, quarterly or annually) to evaluate business activities and promptly handle arising issues such as revenue and expenditure differences, contract disputes trade, etc.

Manage e-billing

E-invoice management process similar to regular invoices. However, in this process, the management and control of input electronic invoices is extremely important. According to Circular 32/2011/TT-BTC, the storage of electronic invoices requires the following requirements:

  • For sellers and buyers of goods and services using e-invoices to record accounting books and prepare financial statements: E-invoices need to be stored for the period specified by the Law on Accounting. If the e-invoice is created from the system of an intermediary organization providing the e-invoice solution, this intermediary organization must also store the e-invoice during the above period.
  • For sellers, buyers and intermediary organizations providing e-invoice solutions: It is necessary to back up the data of e-invoices to information storage tools such as USB, CD and DVD, hard disk or perform online backup to protect the data of e-invoices.

According to the law on storage of accounting documents, both the supplier (the seller) and the customer (the buyer) must simultaneously store the original file of the invoice in .xml format along with a copy. of electronic invoices in the form of images (.pdf, .png, .jpeg) over a period of 10 years. This ensures compliance with the law on archiving of accounting documents.

The process of managing and using electronic invoicesThe process of managing and using electronic invoices

5 ways to manage e-billing for businesses

Set up a new email to receive/send invoices

To avoid confusion between job types, businesses should create a separate email to send and receive electronic invoices with customers and partners instead of using a shared email.

Advantage:

  • Easily manage and categorize e-invoices, minimizing the possibility of invoices being missed and confused with other emails
  • Accountants can easily manage and download electronic invoices to serve other accounting operations.

Defect:

  • Verifying information when requested by a customer may take more timedo The professionalism of the system is not high.
  • Potential risk of data loss in case an email account is lost or locked
  • It is still necessary to perform manual accounting and statement steps on accounting software, which easily causes errors when entering data.
Create a separate email to send and receive electronic invoicesCreate a separate email to send and receive electronic invoices

Print e-invoice email for archiving

Once created or received from a supplier, an e-invoice can be printed directly on paper for easy storage and manual management. However, the data about the e-invoice will be stored in both the email and the paper document.

Advantage:

  • No need to create new emails to send and receive invoices from customers and partners
  • Avoid the risk of data loss when there is an email problem because the data is stored as a paper document.
  • The implementation of this solution is very simple, convenient and time-saving.

Defect:

  • Printing is expensive and requires large storage space
  • Accountants have difficulty in looking up and checking the validity of invoices, at risk of being lost
  • E-invoices also face the challenge of validity checks as there is no formal solution for doing this.
  • Accountants continue to perform manual statements and accounting, leading to errors in the data entry process

Save image of e-billing email on computer

After creating an electronic invoice and receiving it from a supplier, many businesses often store an image of the invoice in a separate folder on the accountant's computer for easy tracking.

Normally, invoices are sorted and stored by date, month, year, supplier and invoice number for easier search and retrieval.

Advantage:

  • Make, manage and store electronic invoices easier.
  • Suitable for small or micro businesses with few invoices incurred in the purchase of goods and services.

Defect:

  • Simultaneous operations on multiple invoices are not supported.
  • The manual process is time consuming and complex.
  • Invoices cannot be filtered and searched by supplier.
  • Visually checking invoices can lead to errors.
  • Risk of losing invoice data when the computer crashes.
  • Need to manually enter data into accounting software, easy to cause errors.
Save photo of e-invoice email on computerSave photo of e-invoice email on computer

Create an excel file listing bill emails

Excel is a popular software for invoice management and reconciliation and other jobs of many enterprises. When using solution invoice management Electronically, accountants can easily import data from e-invoices via email into an Excel spreadsheet for tracking and attach a link to the lookup code to the mailbox. Then, the accountant can import data from Excel to the accounting software and check and compare with the original invoice.

Advantage:

  • Suitable for most accounting operations.
  • Easily look up and classify invoices by various criteria such as supplier, date of purchase, type of goods or services.
  • Especially suitable for small businesses.

Defect:

  • The process of manually entering data from email into spreadsheets and then into accounting software can lead to a lot of errors and omissions.
  • Time consuming when the number of invoices is too much
  • Finding the original invoice on email and the corresponding information on the spreadsheet often takes a long time and risks leading to inconsistencies between different data sources.
  • There is no automatic solution for checking invoice validity
Create an excel file that lists invoice emailsCreate an excel file that lists invoice emails

Using bill management software

Software Bill Management E-invoice is considered the most effective solution in overcoming the limitations of previous methods of managing and storing electronic invoices. At the same time, this is also the most optimal form of management today.

Advantage:

  • Save time and reduce the workload of accountants in receiving, sorting, reconciling and checking invoices
  • Limit errors during manual data entry.
  • Automatically check the validity of input invoices, including business information, invoices and digital signatures in invoices.
  • Update data automatically and regularly, synchronizing with accounting software used by businesses.
  • Easily search, look up and account for invoices when needed.

Note: To ensure effectiveness in invoice management When it comes to electronics, businesses need to choose a highly reputable software and solution provider, using modern technology and supported by a team of professionals with experience in finance and accounting.

Vindoo Invoicing is software Bill Management and automatic payments, helping to manage and check invoices, payments and debts effectively. You can easily choose the billing policy and payment method that suits your needs. In addition, the software also helps you quickly reconcile debts and receive payments more easily and conveniently.

Ready to Experience One App FREE?

Viindoo Accounting software automate all business accounting tasks. Closely integrate and real-time keep track of data. Cash flow prediction, effective business financial planning.

 Free Forever

 Unlimited users

TRY NOW - It's Free!

FAQs

How does bill management software help with invoice approval workflows?

Bill management software enables efficient invoice approval workflows by allowing multiple stakeholders to review and approve invoices electronically, reducing manual handling and delays.

Yes, Viindoo Accounting software integrate with Viindoo Invoicing, ensuring seamless data transfer and accurate financial reporting.

Yes, bill management software can generate reports on payment history, outstanding bills, expense summaries, and other financial metrics, providing insights for decision-making.

Yes, bill management software can be beneficial for individuals who want to organize and track their personal bills efficiently.

Bill management efficiency will help optimize the payment process, reduce financial risks and increase transparency in business operations. If you want to learn more about invoice management software, feel free to contact Viindoo Please!

>>>> Continue With:

Jun Nguyen April 28, 2023

SHARE THIS POST