By Chantal Aubry. Invoice. Published at Friday, March 15th, 2019 - 19:08:45 PM.
Proforma invoices basically contain much of the same information as the formal quotation, and in many cases can be used in place of one. It should give the buyer as much information about the order as possible so arrangements can be made efficiently. The invoices inform the buyer and the appropriate import government authorities details of the future shipment; changes should not be made without the buyer’s consent.
A Proforma invoice is an invoice provided by a supplier in advance of providing the goods or service. A quotation in the form of an invoice prepared by the seller that details items which would appear on a commercial invoice if an order results. It is more of a customs declaration form used in international trade that describes the parties involved in the shipping transaction, the goods being transported, and the value of the goods. It is the primary document to declare value for customs. It is not a true invoice, because the seller does not record a pro forma invoice as an accounts receivable and the buyer does not record a pro forma invoice as an accounts payable.
Automating as many processes as possible through an integrated solution, which optimally manages these tasks, results in a directly proportionate decrease in opportunities for human error while increasing the opportunities for savings and improved efficiency. Control of taxes is also increased with electronic billing because it allows for greater control over tax compliance and simplifies the auditing process.
In order to comply with regulations and ensure that an electronic invoice has the same legal validity as a paper invoice, the corresponding electronic document must contain the same mandatory fields as any other invoice, must be signed with an electronic signature based on a recognized certificate and must be sent from one computer to another with the parties’ mutual consent.
Include Your Terms – must be clear When do you expect the client to pay you? What happens if they miss the deadline? To be able to send follow-up or overdue notices or to charge interest, you need a rock-solid paper trail that no one can argue with.
Additionally, invoice factoring makes it easier for you to offer credit terms to customers. This can help you increase your sales without negatively impacting your cash flow. Invoice factoring also can help you take advantage of the early payment discounts many vendors offer on bills within ten days. Ultimately, invoice factoring can help build business credit. The cash flow you create from invoice factoring can make it possible to pay your vendors on time and establish a stronger credit rating. And this can assist you with securing credit from other vendors and financial institutions.
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