That way, you can easily access that information without having to look through your files. If you don't use accounting software, you may find it useful to keep a spreadsheet with your invoice information such as the vendor or client it relates to, the invoice number, the amount, if it's paid or not and where it's filed. If you use an accounting software, you may have copies of your invoices within the software, but you can also find it helpful to save and file a copy physically or digitally in case something goes wrong with your software. These methods range from a simple spreadsheet indicating basic information about each invoice, including if it's paid or not, all the way up to a comprehensive accounting software. There are many ways you can use software for tracking your invoices that can be extremely useful. Related: 7 Steps To Organize Your Paperwork and Declutter Your Desk 3. However, if you want more precision or you're using a physical filing method, separating invoices by whether they're paid or unpaid can be helpful. Invoices filed digitally are often easier to search through, and you'll have other methods for finding if they were paid already. If you use a digital tracking method for your invoices, such as a spreadsheet or accounting software, you should be able to file all invoices together regardless of if they are paid or unpaid. For instance, you would have 12 folders for 2021, including March 2021, April 2021 and May 2021. Whichever you choose, however, you may find it easiest to file them by month and year. There are benefits to each, although many businesses have moved into a purely digital method. You may choose to file invoices in physical folders, or you might prefer digital folders instead. Related: How To Assign an Invoice Number 2. Whatever method you use, it's best to keep it consistent across all invoices you file. You might have an organized method for doing this, such as by invoice number and date, or you might choose to use the vendor or client name and a date. You'll want to be sure this information is correct before you file a version of the invoice, because that can prevent confusion later when you've forgotten the specifics of the invoice or if someone else needs to reference it.īefore you file an invoice digitally, you will also want to make sure the invoice file is named in a clear way. The status is whether it is paid or unpaid. This means ensuring all contact information is correct, the numbers and dollar amounts are correct and the status of the invoice is correct. Make sure all data is correct and updatedīefore you file an invoice, you probably want to make sure all the information on it is accurate and up-to-date. Here are the steps for filing invoices, whether they are invoices you have received from vendors or they are invoices you have sent to clients: 1. Related: What Is an Invoice? Definition, What's Included How to file invoices For that reason, having an organized invoice filing system is extremely helpful. There are often tax laws regarding this, which may vary by type of business and industry. Because invoices have important information on them, most businesses want to store them carefully for future reference. Some businesses only send invoices, others send and receive and others only receive invoices. Invoices are an integral part of many businesses, ranging from one-person independent contractor businesses to large corporations. In this article, we explain why it's important to file invoices and how filing invoices works. You may be unsure about where to start with filing your invoices, but there are many methods you can use that are effective. For a variety of reasons, it's best to retain your invoices as a record, especially if you work in a business with others who may need to access them. Whether you're sending or receiving invoices, you have probably wondered at some point what you're supposed to do with them.
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