Bookkeeping – Definition, Importance, Types & Methods
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] What is bookkeeping and why is it important? Bookkeeping is the process of recording your company’s financial transactions into organized accounts on a daily basis. It can also refer to the different recording techniques businesses can use. Bookkeeping is an essential part of your accounting process for a few reasons. When you keep transaction records updated, you can generate accurate financial reports that help measure business performance. Detailed records will also be handy in the event of a tax audit. This guide will walk you through the different methods of bookkeeping, how entries are recorded, and the major financial statements involved. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Zoho-Invoice-a-one-stop-solution-to-all-your-invoicing-requirements.png” alt=”bookkeeping” title_text=”Zoho Invoice – a one-stop solution to all your invoicing requirements” url=”https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Methods of bookkeeping Before you begin bookkeeping, your business must decide what method you are going to follow. When choosing, consider the volume of daily transactions your business has and the amount of revenue you earn. If you are a small business, a complex bookkeeping method designed for enterprises may cause unnecessary complications. Conversely, less robust methods of bookkeeping will not suffice for large corporations. With this in mind, let’s break these methods down so you can find the right one for your business. Single-entry bookkeeping Single-entry bookkeeping is a straightforward method where one entry is made for each transaction in your books. These transactions are usually maintained in a cash book to track incoming revenue and outgoing expenses. You do not need formal accounting training for the single-entry system. The single-entry method will suit small private companies and sole proprietorships that do not buy or sell on credit, own little to no physical assets, and hold small amounts of inventory. Double-entry bookkeeping Double-entry bookkeeping is more robust. It follows the principle that every transaction affects at least two accounts, and they are recorded as debits and credits. For example, if you make a sale for $10, your cash account will be debited for $10 and your sales account will be credited by the same amount. In the double-entry system, the total credits must always equal the total debits. When this happens, your books are “balanced.” Using the double-entry method for bookkeeping makes more sense if your business is large, public, or buys and sells on credit. Enterprises often choose the double-entry system because it leaves less room for error. In a way, it ‘double-checks’ your books because each transaction is recorded as two matching but offsetting accounts. Cash-based or accrual-based The next step is choosing between a cash or accrual basis for your bookkeeping. This decision will depend on when your business recognizes its revenue and expenses. In cash-based, you recognize revenue when you receive cash into your business. Expenses are recognized when they are paid for. In other words, any time cash enters or exits your accounts, they are recognized in the books. This means that purchases or sales made on credit will not go into your books until the cash exchanges. In the accrual method, revenue is recognized when it is earned. Similarly, expenses are recorded when they are incurred, usually along with corresponding revenues. The actual cash does not have to enter or exit for the transaction to be recorded. You can mark your sales and purchases made on credit right away. Both a cash and accrual basis can work with single- or double-entry bookkeeping. In general however, the single-entry method is the foundation for cash-based bookkeeping. Transactions are recorded as single entries which are either cash coming in or going out. The accrual basis works better with the double-entry system. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_video src=”https://youtu.be/4g9T20wRdio” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_video][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] How to record entries in bookkeeping Generating financial statements like balance sheets, income statements, and cash flow statements helps you understand where your business stands and gauge its performance. For these reports to portray your business accurately, you must have properly documented records of your transactions. Keeping these records as current as possible is also helpful when reconciling your accounts. Recording transactions begins with source documents like purchase and sales orders, bills, invoices, and cash register tapes. Once you gather these documents, you can record the transactions using journals, ledgers, and the trial balance. If you are a very small company, you may only need a cash register. The information can then be consolidated and turned into financial statements. Cash registers A cash register is an electronic machine that is used to calculate and register transactions. Usually, cash registers are used to record cash flow in stores. The cashier collects the cash for a sale and returns a balance amount to the customer. Both the collected cash and balance returned are recorded in the register as single-entry cash accounts. Cash registers also store transaction receipts, so you can easily record them in your sales journal. Cash registers are commonly found in businesses of all sizes. However, they aren’t usually the primary method of recording transactions because they use the single-entry, cash-based system of bookkeeping. This makes them convenient for very small businesses but too simplistic for enterprises. The journal The journal is called the book of original entry. It is the place where a business chronologically records its transactions for the first time. A journal can be either physical (in the form of a book or diary), or digital (stored as spreadsheets, or data in accounting software). It specifies the date of each transaction, the accounts credited or debited, and the amount involved. While the journal is not usually checked for balance at the end of the fiscal year, each journal entry affects the ledger. As we’ll learn, it is imperative that the ledger is balanced, so keeping an accurate journal is a good habit to keep. This form is useful for double-entry bookkeeping. The ledger A ledger is a book or a compilation of accounts. It is also called the book of second entry. After you enter transactions in a journal, they are classified into separate accounts and then transferred into the ledger. These records are transcribed by accounts in the order: assets, liabilities, equity, income, and expenses. Like the journal, the ledger can also be physical or electronic spreadsheets. A ledger contains a chart of accounts, which is a list of all the names and number of accounts in the ledger. The chart usually occurs in the same order of accounts as the transcribed records. Unlike the journal, ledgers are investigated by auditors, so they must always be balanced at the end of
Read MoreHere’s How You Can Manage Cash Flow at Different Stages of Business Growth
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] The life cycle of any business can be divided into four phases: launch, growth, maturity, and decline or renewal. Far too often, businesses fail to identify the actual stage their business is in, and miss opportunities for effective management. To take one common mistake as an example, a gradual increase in sales does not indicate your business is in a growth phase. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://finance.zohocorp.com/wp-content/uploads/2021/05/article.png” alt=”cash flow” _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Having a proper understanding of each phase of the business life cycle will help you prepare for the opportunities and challenges in each phase. The characteristics of each stage may vary based on business type, but if there’s one common feature that affects business at all stages, it’s the cash flow. In this article, you will read about the effects of cash in different phases as your business moves through its growth curve. The different phases of business Phase 1: Launch This stage is the beginning of the business life cycle. The goal of this phase is to establish your business concept to your audience in order to achieve a positive cash flow. If you look at the graph for this stage, the sales are usually low in the beginning and then there’s a gradual increase. Businesses often concentrate on marketing their ideas to a targeted audience in order to boost their revenue. Phase 2: Growth The slope for the growth phase is a little steeper than the previous phase. This phase of a business is defined by a rapid increase in sales leading to an increase in profits, as your business gets more popular amongst a wider customer base. In order to be competitive in this phase, you will need to focus on building and promoting your brand and invest in activities that increase your brand value. Phase 3: Maturity If your business has reached this stage, you have a devoted set of customers but the competition is still cutthroat. This is why the slope on the graph is a flat line that represents your steady turnover. Your sales revenue will be somewhat constant because you are selling roughly the same products, year after year, at the same cost. Businesses in this phase focus on maintaining ground with respect to the economy, competitors, and the changing requirements of the customers. Keeping an eye on the bigger picture will help you focus on improvement and productivity in order to compete with other businesses. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Phase 4: Decline or renewal In this phase, also called the post-maturity phase, businesses may find it difficult to cope with the new challenges posed by competitors. At this stage businesses can take several courses, depending on how their leadership responds. They may continue at a steady state, find a way to renew the business to fuel further growth, or eventually decline if there is no scope for sustained business and no successful attempt at renewal. How to cope with the effects of cash flow in a business lifecycle Launch phase When your business is at this stage, your big needs are likely for money and time to establish your idea in the market. You may spend extra to establish your business and your sales might also be low, leading to a sluggish cash flow. The challenge is not to spend away the little cash that you have saved for your business. To use your cash judiciously, invest in budgeting and forecasting in order to monitor your spending. Make sure to establish strict payment terms so that your receivables reach you on time. Using this discipline, you can build cash reserves that will keep your business on track during lean times. An important parameter to understand for your business is the break-even point. This is defined as the point below which your business will need to source additional finances or liquidate some of its assets to meet your fixed costs. Knowing about the break-even point may not change your cash flow, but it will help you estimate how much you can spend to reach your goals. Financially, it might be tough to hire an accountant at this stage, but their advice could help you set realistic goals for the next phase of your business. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] Growth phase The acquisition of new customers leads to consistency in revenue and increased profit. The extra inflow of cash that comes along with this phase is called positive cash flow, which must be used thoughtfully to move your business forward. In this stage, suppliers will be reluctant to grant your business credit because you don’t yet have a long track record with their company. You will need to hire more people to work for your business, which means you need to spend more on wages. Most of your money will be spent on payments to suppliers and employees before it comes back into the cash cycle in the form of payments for the sales you’ve made to your customers. You may experience a time lag in receiving those payments, though, as customers (especially retailers) will take full advantage of the credit terms that you offer. Other factors like working capital, debt, and the cash cycle can also influence your cash flow at this stage. To keep your business healthy, your cash must be planned, monitored and measured, and put to judicious use. Forecast your business goals and plan the cash required to achieve your growth objectives. If your payments still don’t turn up on time, your business should not come to a standstill. You can explore several financing options like revolving credit lines to keep your business operations going. Maturity phase At this stage, the cash flow does not change dramatically. Your mature business is likely to have stable sales due to market acceptance of your products. Operations will become profitable early in this stage, leading to net positive cash flow. This excess cash is usually used to pay off debts
Read MoreHere are the top 7 cash flow mistakes that can cripple your small business
[et_pb_section fb_built=”1″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] All businesses run on cash. Managing money is an essential skill that all business owners should hone as the business progresses in its lifecycle. Small business owners are often caught in a bundle of activities aimed towards business growth, with very little time or money to assign resources towards monitoring their cash flow. At this stage, there are many chances to derail your business due to mismanagement of cash. According to a report from CBInsights, 29% of businesses fail because they run out of cash. Some common mistakes that can lead to cash flow issues include forced growth, miscalculation of profits, insufficient planning for a lean period or crisis, problems collecting payments and more. The first thing that illustrates a problem with cash flow is a dip in sales and a stagnant inventory, both of which directly affect your revenue. Poor money management and forecasting can lead to multiple cash flow gaps in your business, ultimately preventing you from paying your bills on time. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://finance.zohocorp.com/wp-content/uploads/2021/07/article.png” alt=”cash flow” _builder_version=”4.9.10″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Make-payment-collection-a-breeze-with-Zoho-Invoice.png” alt=”How can I convert an estimate into an invoice?” title_text=”Make payment collection a breeze with Zoho Invoice” url=”https://go.zoho.com/HzZ%20https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] For your business to succeed, you must check for short term and long term solutions to avoid running into financial problems. Good cash flow management will ensure that you have enough cash to pay your employees on time, purchase inventory to fulfill your orders, have ample stashed in bank account as reserves, all while carving out an efficient way to collect payments before the due date. This will eventually prevent you from overspending and help you with your businesses’ growth plan. In this article, you will read about common cash flow problems businesses face and what you can do to save yours from a pool of debt. Common cash flow mistakes to avoid 1. Not monitoring financial statements Financial reporting is the method of monitoring financial statements at defined time intervals. A cash flow statement is a financial statement that gives you a detailed insight of your company’s expenses. Investors and other stakeholders rely on this document to judge the value of your business. When you do not monitor your financial statements regularly, you create chances for misinterpreting your businesses’ progress, which may lead to bad decisions. To avoid roadblocks due to cash flow, you must prepare a cash flow budget to predict future earnings. Good predictions are only possible when you have clear financials that are reconciled frequently. 2.Confusing cash flow with profit Business owners are always on the lookout for that one key metric to understand the financial health of their business. In such situations, cash flow and profit are often pitted against one another. Cash flow is the net income of cash moving in to or out of a business at any given time. Profit is the money that remains when you subtract the operating expenses from revenue. It is possible for your business to be profitable and still have negative cash flow keeping you from paying regular expenses and creating hurdles in your growth plans. Your business can also have a positive cash flow and yet find it hard to make a profit (usually the case in start-ups and scaling businesses). Cash flow and profit are not the same, and it is important that you understand the difference between the two before you make any important business decisions. For example, assume that you purchase wooden chairs for Rs 6000 at a 40% margin and sell it for Rs 10000. You can assume that you are making 40% on every sale, after considering minor expenses. However, at the end of a quarter as you prepare your balance sheet, you could be surprised at the losses your business made. In your calculations you did not consider a variety of costs like transaction fees, shipping costs, and costs of storing and returns (which might have been different for each sale). You could have easily assumed that you are making a profit every transaction, but after including overhead costs you can see the business actually took a loss. When your business cannot keep up with the losses, it becomes difficult to fulfil the cash commitments, leading to a cash crunch. Forecasting the consequences of such expenses is a necessary step and can be helpful in determining if there’s enough money in the bank account to meet all your expenses. For a healthy cash flow, you must first subtract your current expenses and future costs, like tax, from your revenue. Your business will only be profitable if there’s any money left after this. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_video src=”https://youtu.be/4g9T20wRdio” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_video][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_text _builder_version=”4.9.10″ _module_preset=”default”] 3.Unprepared for the lean period Rainy days are inevitable in a business. You may not get payments on time, have insufficient cash to pay your dues, have to suddenly invest in repairing expensive equipment or lose customers during a crisis. Such excess expenses combined with insufficient financial reserves can drive your business bankrupt. Planning the cash flow for your business is always worth the time. As a short-term plan, you can consider stashing away some money as a cash reserve. Financial experts suggest that you can ideally set aside three to six months of your company’s regular expenses as cash reserves. Of course, the best way is to find out your business needs and analyse your financial statements before fixing an amount. You must also have a long-term cash flow outlook. This will help you forecast the cash required for business operations over a period of two to five years. The best place to start would be to monitor your current income and expenses. Here are a few things you can do to save up: Set a monthly goal and set aside that amount every month. Maintain a separate account to prevent from spending it elsewhere. Always try and cut down on
Read MoreManage Accounts Receivable remotely using an online invoicing tool
[et_pb_section fb_built="1" _builder_version="4.9.3" _module_preset="default"][et_pb_row _builder_version="4.9.3" _module_preset="default"][et_pb_column _builder_version="4.9.3" _module_preset="default" type="4_4"][et_pb_text _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"]Remote work has been steadily on the rise over the past decade. Recent research by GetApp found that remote work nearly quadrupled over the past 10 years. With added impetus from the COVID-19 situation, remote work has become the new normal for many workers. This shift may be here to stay—a recent survey by Gartner found that 74% of CFOs intend to shift some employees to remote work permanently.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.9.3" _module_preset="default"][et_pb_column _builder_version="4.9.3" _module_preset="default" type="4_4"][et_pb_text _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"]As a business owner, your primary concern about remote work may be the productivity of your employees. The good news is that there’s a lot you can do to help them be productive. If you put the proper tools in place to allow them to carry out their usual tasks efficiently while working remotely, they’re more likely to show the kind of productivity you’re looking for. This is especially true for Accounts Receivable, which is an area where many businesses end up using Excel for invoicing. A 2017 article by Small Business Trends revealed that a whopping 69 percent of small businesses trust spreadsheets to track their invoices and spending. The reasons are obvious—Excel is good with numbers. Calculations are easy, and it’s simple to manually correct small errors like an item value that’s entered wrongly. But for an invoicing team to function remotely, it needs more than a tool that can calculate. Team members need to be able to send estimates and invoices, collect payments, share insights and information easily, and most of all, stay up to date. This is where spreadsheets tend to fail, and where online invoicing tools can help. In this article, we’ll look at the different aspects of the invoicing process and how online invoicing tools offer an edge over Excel for remote work.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.9.3" _module_preset="default"][et_pb_column _builder_version="4.9.3" _module_preset="default" type="4_4"][et_pb_text _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"]1. Collaboration In a traditional office setting, a lot of information gets exchanged during face-to-face interactions. Since this is out of the question with remote work, it’s important to ensure that your team members are still able to collaborate and keep the show running. Shared notes: If messages regarding financial transactions are exchanged via collaboration tools like a chat group or email thread, it means they are not linked with the corresponding transactions. As a result, your team members have to go back and forth between their messages and their invoicing tasks to get the right information. Since online invoicing tools are designed for a multi-user environment, they allow your team members to communicate in a space that’s connected to the work they’re doing. Users can record important details regarding invoices or estimates as comments that can be viewed by other users in the organization. Shared access: With Excel, it’s challenging to provide your team members with access to the information they need, while maintaining the security of sensitive financial information. Online invoicing tools, on the other hand, allow you to give users specific role-based access—you can define what they can and cannot view or modify. Shared reports: Collaboration is not just about conversations—it’s also about making sure everyone is in the loop. Online invoicing tools allow you to schedule sales and other reports to be automatically emailed to your team members. This helps them stay up-to-date on the team’s activities, wherever they are.[/et_pb_text][et_pb_button button_url="https://go.zoho.com/KwD" url_new_window="on" button_text="Access Free Invoicing Software" button_alignment="center" _builder_version="4.9.3" _module_preset="default" custom_button="on" button_text_color="#FFFFFF" button_bg_color="#0C71C3" button_border_width="0px" button_border_radius="22px" button_use_icon="off" filter_saturate="74%" button_text_shadow_style="preset2" box_shadow_style="preset3"][/et_pb_button][et_pb_image src="https://blog.gotmenow.com/wp-content/uploads/2021/07/WhatsApp-Image-2021-07-09-at-11.04.45.jpeg" _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.9.3" _module_preset="default"][et_pb_column _builder_version="4.9.3" _module_preset="default" type="4_4"][et_pb_text _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"]2. Organization If your company does invoices in Excel, each invoice has to be created in a separate file for recordkeeping and sending to the customer. Organizing separate files for each invoice means a lot of nested folders, which makes it hard to find the individual files later. A better solution would be a central repository where all the invoices are stored, searchable, and available for your team members whenever they’re needed. Online invoicing tools provide this setup by default—since they are cloud-based, all the transactions are saved on secure servers, and team members with permission to access them can find and view them instantaneously.[/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.9.3" _module_preset="default"][et_pb_column _builder_version="4.9.3" _module_preset="default" type="4_4"][et_pb_text _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"]3. Keeping track of invoice numbers Accidentally duplicating invoice numbers can cause a huge and possibly expensive headache for your company. Besides making it difficult to match up incoming payments, it can also cause confusion during the end of the fiscal year and tax season. Keeping track of invoice numbers becomes more challenging during remote work when employees are working less closely with each other. You can avoid duplication by assigning number batches to different staff, but that requires an extra layer of manual coordination, and it makes it more likely that you’ll have gaps in your invoice numbers (which in turn makes it harder to check for duplicates). Online invoicing tools eliminate this problem by centralizing the invoice numbering system. Once you set up how you want the invoices to be numbered, the application ensures that all your invoice numbers are unique and continuous, even if multiple users are creating invoices concurrently. This eliminates gaps and duplicates, making it easy for you to find and match transactions.[/et_pb_text][et_pb_button button_url="https://go.zoho.com/KwD" url_new_window="on" button_text="Access Free Invoicing Software" button_alignment="center" _builder_version="4.9.3" _module_preset="default" custom_button="on" button_text_color="#FFFFFF" button_bg_color="#0C71C3" button_border_width="0px" button_border_radius="22px" button_use_icon="off" filter_saturate="74%" button_text_shadow_style="preset2" box_shadow_style="preset3"][/et_pb_button][/et_pb_column][/et_pb_row][et_pb_row _builder_version="4.9.3" _module_preset="default"][et_pb_column _builder_version="4.9.3" _module_preset="default" type="4_4"][et_pb_video src="https://youtu.be/4g9T20wRdio" _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"][/et_pb_video][et_pb_text _builder_version="4.9.3" _module_preset="default" hover_enabled="0" sticky_enabled="0"]4. Errors in transactions Excel, as good as it is for calculation, can’t keep track of your customers and items. When you create invoices in a spreadsheet, these details are mostly copied from other sources, like emails or previous transactions. It’s easy for errors to happen during this copy-paste process, especially if you have a high volume of invoices. If you find one mistake, you can advise your team members to be more careful. But if you see these errors happening often, maybe it’s time to question the tool! Online invoicing tools give you the option to save your customer Read MoreHow do I check if my client has viewed the invoice that I’ve sent him?
[et_pb_section fb_built=”1″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_row _builder_version=”4.9.3″ _module_preset=”default” custom_margin=”-42px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_text _builder_version=”4.9.3″ _module_preset=”default”] If you’ve enabled the client portal for your business in Zoho Invoice and configured it for your customers, they can view their transactions with you by logging into the portal. This includes viewing and accepting/declining estimates as well as viewing invoices. The client viewed estimates and invoices can be filtered for separate viewing, Go to the estimate or invoice tab under Sales on the home page of Zoho Invoice. Click on the drop down next to All estimates or All Invoices on the top left hand corner, and select Client-viewed. You can now see only the estimates/invoices viewed by the client. [/et_pb_text][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/Zoho-Invoice-a-one-stop-solution-to-all-your-invoicing-requirements.png” alt=”How can I convert an estimate into an invoice?” title_text=”Zoho Invoice – a one-stop solution to all your invoicing requirements” url=”https://go.zoho.com/KwD” url_new_window=”on” align=”center” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.3″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_image src=”https://blog.gotmenow.com/wp-content/uploads/2021/06/sort-client-viewed.png” alt=”invoice” title_text=”sort-client-viewed” _builder_version=”4.9.3″ _module_preset=”default”][/et_pb_image][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_row _builder_version=”4.9.3″ _module_preset=”default” custom_margin=”-36px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_text _builder_version=”4.9.3″ _module_preset=”default”] Alternatively, you can simply click on the particular estimate or invoice and check if it has been viewed by the client. A tiny eye icon on the right corner of the estimate/invoice page accompanying the words Viewed suggests that the client has viewed it. [/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_row _builder_version=”4.9.3″ _module_preset=”default” custom_margin=”-48px|auto||auto||”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_video src=”https://youtu.be/4g9T20wRdio” _builder_version=”4.9.3″ _module_preset=”default” min_height=”297.2px” custom_padding=”||0px|||”][/et_pb_video][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_row _builder_version=”4.9.3″ _module_preset=”default” custom_margin=”-53px|auto||auto||” custom_padding=”0px|||||”][et_pb_column type=”4_4″ _builder_version=”4.9.3″ _module_preset=”default”][et_pb_post_slider posts_number=”10″ include_categories=”139″ bg_overlay_color=”#0C71C3″ _builder_version=”4.9.10″ _module_preset=”default” height=”403px” max_height=”422px”][/et_pb_post_slider][/et_pb_column][/et_pb_row][et_pb_row _builder_version=”4.9.10″ _module_preset=”default”][et_pb_column type=”4_4″ _builder_version=”4.9.10″ _module_preset=”default”][et_pb_social_media_follow _builder_version=”4.9.3″ _module_preset=”default” text_orientation=”center” global_module=”10723″][et_pb_social_media_follow_network social_network=”facebook” url=”https://www.facebook.com/zoho” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#3b5998″ follow_button=”off” url_new_window=”on”]facebook[/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”twitter” url=”https://www.twitter.com/zoho” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#00aced” follow_button=”off” url_new_window=”on”]twitter[/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”linkedin” url=”https://www.linkedin.com/company/zoho” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#007bb6″ follow_button=”off” url_new_window=”on”]linkedin[/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”instagram” url=”https://www.instagram.com/business_tools_online/” _builder_version=”4.9.3″ _module_preset=”default” background_color=”#ea2c59″ follow_button=”off” url_new_window=”on”]instagram[/et_pb_social_media_follow_network][/et_pb_social_media_follow][/et_pb_column][/et_pb_row][/et_pb_section]
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