Double-entry accounting should, in some cases, be called ‘double-effort’ accounting. In the case of receivables and payables, that’s true. Each invoice raised by a supplier needs to be entered at the other side by the customer… therefore any efficiency we make in how we raise them should also represent an efficiency in our client’s purchase ledger too.
Broadly, we have two types of clients – those on a package or retainer, and those on a purely time and materials basis.
Those on packages, such as the Platinum Tariff, presently receive an automated monthly invoice for the monthly service fee and a separate invoice for any disbursements, overages, additional time related charges or expenses.
Those on a time and materials basis, receive, each month, an invoice for all charges incurred in that month – even if that charge is just a disbursement for a £13 Companies House filing fee, or one month of QuickBooks.
Going forward, we shall only raise invoices for expenses/disbursements quarterly (March, June, September, December), unless there is also an additional time related or package overage (such as additional employees over inclusive allowance for payroll) charge incurred in that month – then we’ll raise an invoice for the expenses, such as a filing fee, at the same time.
This means that our clients who pay on submission for their annual accounts but also take Xero from us through the Partner Program, will now only get 4 invoices a year – and those on packages without overages or book-keeping etc will only get 2 separate invoices 4 times a year instead of 12. Plus the additional (albeit very modest) benefit to cash flow.
As ever, if you have any questions, please reach out to your primary contact who will be happy to assist.
