Common billing mistakes to avoid to avoid problems
Posted: Sun Dec 22, 2024 5:10 am
The invoicing process of a company is not supposed to be excessively difficult and, consequently, not cause problems for the Tax Administration. However, certain errors are common which, in the end, due to not complying with the regulations, can put any business in trouble.
The regulations are clear and simple. However, it is common to make certain mistakes that can lead to problems during an inspection, both for the issuer and the recipient of the invoice, due to not proceeding correctly .
Data errors
Some relatively common errors have to do with the data that appear on invoices . The lack of identification (total or partial) of the parties invalidates the document, as does the russia mobile number whatsapp absence of the date of issue of the document or the date on which the transaction took place.
Another problem may arise in the numbering . This must be consecutive and always in relation to the issue date and the numbering can only start at the beginning of the year. Therefore, it is not acceptable for an invoice with a numbering after another to have an issue date before it, nor an independent numbering for each month of the year.
For example, we can start a numbering with the beginning of the year 1/2014, 2/2014, ... but not one in which invoices are issued in monthly order, 0101/2014 and 0201/2014 cannot correspond to invoices issued in January 2014 and 0102/2014 and 0202/2014 to those issued in February of that same year, since 0201/2014 would be earlier in time than 0102/2014 and yet it would have a higher numbering.
Furthermore, different invoice series can only be used to identify transactions carried out in different billing centres or for different activities . Let's suppose a company with two different headquarters, one of them could use series A to identify its invoices and the other series B. The same could be done in the case of a company with two different lines of business, but never use different series to identify the same activity in the same centre.
Problems with the invoiced concept
Another problem may arise if the invoiced item is not correctly identified . In the case of sales invoices, it is easy to understand that the merchandise sold and included in the document must appear on these invoices. This aspect can be simplified when there are delivery notes and their numbering is indicated.
In the case of services, it is mandatory to correctly specify what the invoice corresponds to, the services provided and their amount. If there is a contract for the provision of services or it is a successive transaction (periodic and continuous over time) it would be easy to identify the service provided and the transaction invoiced. In all other cases, the service to which the invoice refers must be clearly stated.
If this is not done correctly, the Administration may consider that the invoice is false , that the service has not been provided or that it may correspond to a fraudulent transaction. The same could occur if the amount of the invoice is much higher than the market price of that transaction or if it is not detailed correctly.
Using good billing and management software that complies with regulations saves you from these types of problems. With Sage we can rest assured that this issue will be resolved .
Keeping track of your accounts is essential for any business. We offer you different accounting programs so that you can easily manage your accounting, invoicing and number management. Among other tasks, you can generate your VAT returns, manage payments, and create budgets and reports.
The regulations are clear and simple. However, it is common to make certain mistakes that can lead to problems during an inspection, both for the issuer and the recipient of the invoice, due to not proceeding correctly .
Data errors
Some relatively common errors have to do with the data that appear on invoices . The lack of identification (total or partial) of the parties invalidates the document, as does the russia mobile number whatsapp absence of the date of issue of the document or the date on which the transaction took place.
Another problem may arise in the numbering . This must be consecutive and always in relation to the issue date and the numbering can only start at the beginning of the year. Therefore, it is not acceptable for an invoice with a numbering after another to have an issue date before it, nor an independent numbering for each month of the year.
For example, we can start a numbering with the beginning of the year 1/2014, 2/2014, ... but not one in which invoices are issued in monthly order, 0101/2014 and 0201/2014 cannot correspond to invoices issued in January 2014 and 0102/2014 and 0202/2014 to those issued in February of that same year, since 0201/2014 would be earlier in time than 0102/2014 and yet it would have a higher numbering.
Furthermore, different invoice series can only be used to identify transactions carried out in different billing centres or for different activities . Let's suppose a company with two different headquarters, one of them could use series A to identify its invoices and the other series B. The same could be done in the case of a company with two different lines of business, but never use different series to identify the same activity in the same centre.
Problems with the invoiced concept
Another problem may arise if the invoiced item is not correctly identified . In the case of sales invoices, it is easy to understand that the merchandise sold and included in the document must appear on these invoices. This aspect can be simplified when there are delivery notes and their numbering is indicated.
In the case of services, it is mandatory to correctly specify what the invoice corresponds to, the services provided and their amount. If there is a contract for the provision of services or it is a successive transaction (periodic and continuous over time) it would be easy to identify the service provided and the transaction invoiced. In all other cases, the service to which the invoice refers must be clearly stated.
If this is not done correctly, the Administration may consider that the invoice is false , that the service has not been provided or that it may correspond to a fraudulent transaction. The same could occur if the amount of the invoice is much higher than the market price of that transaction or if it is not detailed correctly.
Using good billing and management software that complies with regulations saves you from these types of problems. With Sage we can rest assured that this issue will be resolved .
Keeping track of your accounts is essential for any business. We offer you different accounting programs so that you can easily manage your accounting, invoicing and number management. Among other tasks, you can generate your VAT returns, manage payments, and create budgets and reports.