What Is A Shipping Invoice? (Freshbooks Automation and Shipping Invoice Software)
Table of Contents
Not only has accounting software simplified financial transactions, but it has also completely transformed the field and function of accounting as we know it. From basic bookkeeping and transaction recording to a plethora of features and possibilities, the current crop of accounting apps has paved the way for increased computational accuracy and even evidence-based analytics that assist business owners in making more informed decisions. Freshbooks is blazing a trail among these disruptive accounting technologies.
We’ll discuss what a shipping invoice is and how Freshbooks can assist you in determining if it’s the right accounting software for your sales process.
What Is A Shipping Invoice?
A shipping invoice is a type of accounting document that businesses use to keep track of the products they ship from seller to buyer. The shipping invoice, alternatively known as a bill of lading (or BOL), is a legally binding document that must be used whenever a business sends a freight shipment of goods. Shipping invoices, like other types of invoices, serve as a receipt for freight shipments.
Standard Invoice: It details precisely how much the client owes you for your courier services.
Recurring invoice: It is typically used to collect payments from a client on a regular or ongoing basis. When a client purchases a subscription to your services, this method of payment is used.
Prepayment Invoice: This type of invoice is used to collect a down payment or deposit on services before the completion of the work or before the final balance is due.
Time-Based Invoice: A Time-Based Invoice is used to bill clients for time-based services. Hourly invoices are a common type of invoice.
Credit Invoice: A Credit Invoice, also known as a “credit memo,” notifies your clients when their accounts have been credited. This is used when a refund or a rebate is issued.
Debit Invoice: Details an increase in the amount owed by a client for your courier services.
Mixed Invoice: This contains a detailed listing of all charges and credits applied to a client’s account.
The Importance Of Effective Invoice Management
As with any filing system, it makes sense to organise your invoices. While paper copies may work for a time, electronic invoicing becomes necessary as a business grows. A well-designed invoicing tool centralises all of your shipping invoices electronically and provides a customisable view of your business’s shipping costs. Customers can view all invoices in a single standard invoice payment template and sort them by payment status within the system. You can choose to automate payment based on predefined criteria and eliminate the worry of paying a bill late.
Furthermore, you can configure trigger notifications for bills that are significantly higher than usual and choose which types of invoices to pay manually versus those that should be automated. Automatic payment can be stressful for organisations with tight cash flow, but the invoicing software will notify customers via email if the balance due exceeds a specified limit.
By electronically receiving shipping invoices, shippers gain access to a billing software tool that can be used for not only paying invoices across multiple modes of transportation but also for analysing their shipping costs and optimising commercial operations.
What Are Invoice Payment Terms?
Invoice payment terms specify how a business expects to be paid by a client and may include the following:
Due date for payment of the total amount
A list of accepted forms of payment and notices about which forms of payment you do not accept
Advances, deposits, and late payment fees
Specifics regarding the payment plan
The days of paying by cheque via snail mail are long gone.
Because the majority of businesses now send invoices electronically and the majority of payments are made online, 30-day terms are becoming obsolete. Businesses that work diligently to meet their clients’ deadlines should be easily paid within a week.
Automating Your Invoices Is A Powerful Choice
Simplify your life by migrating your Excel and PDF files to a cloud-based invoicing system. By implementing an automated invoicing payment system, you can save time and money while also avoiding costly mistakes. Once you’ve created a template, entering the necessary information for your invoice will be a breeze. You can save time by creating recurring invoices for invoices that occur regularly.
Additionally, these software systems notify your customers automatically when it is time to pay within a specified period. This strategy is a far more convenient method of pursuing unpaid invoices than sending manual reminders. By significantly speeding up the invoicing process, automation can free up your time to focus on running your business.
Why Should You Use Freshbooks to Manage Your Shipping Invoices?
Freshbooks is a cloud-based invoicing system that offers superior invoice-to-payment functionality that is especially beneficial for small businesses. It enables you to determine when a client opens an invoice email with pinpoint accuracy. Freshbooks help businesses deal with customers who claim not to have received an invoice. Using a cloud-based invoicing application ensures that your invoices are sent to clients on time.
Managing your billing history is simple with the app’s numerous tools for tracking both past and current invoices. For instance, you can quickly locate any past-due invoices. Additionally, you can send automated reminders to clients whose payments have fallen behind schedule.
Payment management is convenient because you can settle accounts via credit card processing with Visa, Mastercard, or American Express, or via online payments with PayPal. FreshBooks combines cloud invoicing and an online payment gateway to create an efficient payment collection tool that eliminates the need to speak directly with a client. You can automate the recurring billing process to save time. Furthermore, FreshBooks supports multi-currency invoicing, which enables you to bill customers in their native currency.
The FreshBooks invoice generator generates a much more professional-looking product than an invoice template. Additionally, you can customise the appearance and feel of your invoices to match your business’s brand, including the layout, font, colour, and imagery, as well as the ability to charge late fees. It includes complementary integrations that assist your business with payment methods, invoice status, tax time, and the creation of courier invoice templates, and bulk invoice to customers. When you create detailed invoices, both you and your clients will have a record of critical financial information, which is beneficial for keeping your bookkeeping in order and having critical information on hand during tax season.