How to reduce your invoices amount of an online business

The number of invoices is often a problem for businesses that outsource accounting. Since they are billed by the number of documents, the more there are withdrawal and billing transactions from and to the bank account and the more accounting is expensive.

Receiving Many VAT invoices in small amounts are the worst case scenario since they increase expenses related to accounting support without increasing profits.

In Europe, the requirements of invoices are linked to the VAT. Only VAT invoices have requirements.

Interestingly enough the number of invoices is also a bit related to the number of transactions. So, if your bank bills you on a monthly basis depending on your number of transactions, then this article can be useful for you too.

Solutions:

Choose a payment gateway that gathers & remits the VAT or sales taxes:

Paddle.com

We know that paddle.com is a payment gateway that gathers & remits tax on your behalf. Then, this company pays the money that was accrued in one go. Between yourself and paddle.com, there is a reseller agreement. Consequently, you can issue one invoice with a description of “reseller agreement”. Then, if you have several payouts during the month you can create one line per payout since it comes from the same business partner.

Google play:

Google play is also a reseller. It gathers and remits the vat on your behalf. Consequently, you don’t need to create a very small invoice for every single customer.

Change the billing cycle of your expenses:

Rather than being billed every month, try to choose to be billed every quarter or every year. Today, some companies even offer 3-year billing cycles.

Think about the date of your invoices:

Ask your customers to pay later or now. Carefully choose the time when you want to buy or pay something.

 

 

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