Invoicing software and online invoicing tools are great to improve the accuracy of your invoices while reducing work load and promoting transparency. However, even good programming cannot replace familiarity with regulations, while you should also be on the lookout for glitches. Here, have a few examples of what to watch out for!
Online invoicing tools should have the latest, accurate data
Invoicing software is usually directly connected to NAV (the Tax Authority), and it can report invoices issued automatically. To make the creation of invoices simpler, these online invoicing tools often let you fill in fields with full data sets after just typing the first few letters of your partner’s name. For this, the developer either has a database of its own that is regularly updated based on data from NAV, or pulls data directly from there.
Sometimes there will be a clash between the data you received from your buyer and the data available in the database. In that case, ask your buyer to double check. Either they made a mistake when submitting their data to you, or the data in the invoicing software is not up to date (in which case the developer of the software will be grateful to you for letting them know).
Online invoicing tools are often interoperable
Interoperability means that while you might be using different tools or platforms, they use the same databases, and as a result, you all see the same data. If your buyer is also a company who uses an online invoicing tool, there is a chance they can also see invoices created by you directly in their own invoicing application – even if you forget to send the invoice, which improves the overall efficiency of operation.
However, this kind of interoperability can be a problem if you make a mistake on the invoice – since your buyer will see the inaccurate invoice. In such cases, it is important to communicate about the mistake, and then correct the mistake in accordance with regulations. You can either create a correction invoice that will be valid together with the corrected invoice, or cancel the invoice and make a new one. Read more here to learn when to apply which method.
Software does not know the regulations
The various independent online invoicing tools are constantly updated to keep up with changing regulations and increasing user needs. However, with every new version, there is a new chance for bugs finding their way into the code. As a result, even though prompts, notifications, and fail-safes are in place to help you avoid mistakes, sometimes the program will let you do things that might make sense within a program, but should not be possible in light of regulations and general consensus.
For example, the latest version of the online invoicing tool by NAV lets you modify invoices. As described on the above link, modifying invoices should be avoided, as it decreases transparency (whereas transparency is the very goal of invoicing). The modified invoices created by NAV’s tool consist of only the modified data and nothing else – which can be very confusing to receive.
Even if a function is available in your invoicing tool, if you know it should not, do not use it, and let the developers know.
Accuracy still requires familiarity with rules
Invoicing software can make your invoices more accurate while they decrease the time spent creating and managing invoices. However, mistakes still happen, so you should be aware of regulations and keep an eye out for possible issues. Communication is always key to problem solving.
The Team of Helpers Finance also uses state of the art digital tools to manage the accounting of its clients. Precise bookkeeping and straightforward communication let you as the business owner focus on what you do best: growing your Hungarian business.
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