For many small businesses, invoicing is work that waits until the end of the month. Then hours are looked up, work orders retyped and invoices made one by one. After that the chasing starts. Automating here is not about a prettier invoice but about fewer steps between finishing the job and the money in your account.
This article is about the invoices you send. For invoices you receive from suppliers, see reading purchase invoices automatically with OCR.
Where the invoice comes from
The biggest gain sits before the invoice. If the data is already in your system, nobody has to retype it. That looks different per industry:
- Installer: the signed quote and the completed work order with hours and materials together form the invoice.
- Recruitment agency: approved timesheets are invoiced per client and per week.
- Yoga studio: memberships and class passes are invoiced periodically or paid in advance.
- Garage: the work order with parts and labour becomes the invoice when the car is collected.
How the quote itself is created and signed is covered in automating quotes from enquiry to signature.
What has to be on an invoice
Automating also helps prevent mistakes. The Dutch Tax Administration lists fixed details that belong on an invoice, such as a unique and sequential invoice number, the invoice date, your VAT identification number, a description of the goods or service, the VAT rate and the VAT amount. When the software takes those details from your settings and the customer record, you do not forget them.
If you work with customers in other EU countries, VAT may be reverse charged. Let the software decide that per customer instead of working it out for every invoice. If you are unsure about your own situation, check with your accountant.
Payment via a link
An invoice with a payment link is usually paid faster than one with only a bank account number. The customer does not have to retype anything and the payment lands on the right invoice automatically. You no longer have to match bank statements against your invoices.
- With the invoice: the payment link is in the email and on the PDF.
- After payment: the invoice is marked as paid straight away, with date and amount.
- Partly paid: the outstanding amount stays visible, so the reminder is correct.
Reminders that send themselves
Chasing payment is work nobody enjoys. With fixed reminder steps it always happens, in the same friendly tone.
- Shortly before the due date: a brief note that the invoice is almost due, with the payment link.
- After the due date: a first reminder.
- A week later: a second reminder in a clearer tone.
- After that: a task for a member of staff to get in touch, or a formal demand according to your own terms.
How this works in our software is explained on the page automating invoice follow-up.
Connecting to your accounts
Making invoices in one system and booking them in another is fine, as long as nothing has to be retyped. A connection passes sales invoices and payments to your accounting package automatically, such as Moneybird, Exact Online or e-Boekhouden.
What to watch
- One direction: decide which system leads for customer data, otherwise they overwrite each other.
- Ledger and VAT: check after the first week that revenue and VAT land on the right accounts.
- Retention: in the Netherlands you generally have to keep your records, including invoices, for seven years. Make sure the PDFs are stored somewhere.
An example: BillingFlow
BillingFlow is a young software company that wanted to make invoicing simple for freelancers and small businesses. Our team developed the software behind it: from creating an invoice to getting paid, with the right VAT for the Netherlands and European customers, paying online straight from the invoice, automatic reminders and an overview of what comes in and what is still open. Read the full story in the BillingFlow case.
The same building blocks sit in the software we build per industry. There they connect to your quotes, work orders and customers. Customers can also find their invoices in a client portal for your business.
Frequently asked questions
Can I continue my current invoice numbering?
Yes. Numbering must stay sequential, so in the new system you start with the next number after your last invoice.
Do I have to stop using my accounting package?
No. Invoicing in your software and bookkeeping in your accounting package work well together, as long as a connection passes invoices and payments across.
Do automatic reminders come across as unfriendly?
That depends on tone and timing. A short, friendly note with a payment link is usually seen as a service. You decide the wording and the moments yourself.
Can recurring invoices go out automatically?
Yes. Memberships and fixed amounts can be invoiced periodically, with the same payment link and reminders as other invoices.