You are the gatekeeper for your accounting: your income and expenses. In order for your business to run efficiently, both income and expenses must be managed properly. This is the only way to maintain a solid overview of your cashflow as a founder, and help ensure your business is not reaching above its means.
Basic principle: income should be higher than expenses
This basis for a successful business might seem quite obvious: at the end of the month, your income should always exceed your expenses. While this might not be the case when first starting out, this should be taken into account in the budget and planned for accordingly.
Making sure your profit is more than your expenses is one aspect. Another is keeping track of that income and the expenses encountered by your business. An accounting programme can help!
Manage revenue with accounting software: how it works
By using online accounting and invoicing software like Debitoor, you can simplify and automate the processes that previously seemed intimidating or tedious.
Raise invoices Once you complete each order, you can easily create a new invoice with invoicing & accounting software. Professional invoice templates simplify this process, ensuring yours always include all of the necessary information.
Designing your invoice Creating a professional-looking invoice isn’t just about getting all of the details correct. You should also personalise your invoices to express the unique brand of your business. Invoicing software like Debitoor allows you to quickly switch between invoice designs, upload your logo, change the font and colours of your invoice, and more.
Send your invoice online As soon as your invoice is complete, with your preferred designs in place, it’s ready to send to your customer. In Debitoor, you can email it directly from your account by clicking the ‘Send’ button at the top right, and it’s on its way!
Receive payment Once your customer pays, you can link this payment to the corresponding invoice. If you offer online payment like PayPal, you can connect your PayPal account to Debitoor, and these payments will automatically be matched, marking your invoice as ‘Paid’.
Invoice status Keeping track of which invoices have been completed, sent, viewed, paid as well as which are overdue is often a tedious part of managing invoices. With Debitoor’s invoice list, you can quickly filter invoices by status, which is updated as soon as an action is made on each, and find the invoice you need quickly.
You can also search your invoice list by customer name, include a date or date range, or search by invoice number, all making it simple to manage your invoices in an instant.
Manage expenses with accounting software: how it works
As the founder of a business, it’s crucial to manage where money is being spent: your expenses. Invoicing and accounting software like Debitoor can also help make this process simpler and, dare we say, more enjoyable.
Scan documents with a mobile app Out and about? The Debitoor iOS app and Debitoor Android app allow you to quickly snap a photo of your receipt from within the app, uploading it instantly to your account where you can add basic details and update later on. No more forgetting to add expenses or losing those flimsy receipts.
Categorise expenses If you’ve snapped a photo from the mobile app or uploaded an invoice from a supplier on your computer, you can quickly add the appropriate category. In the web app, the auto-suggest feature helps you find the correct category as soon as you type out the expense description.
For example: “Travel expenses” will pop up as soon as you type out the word “petrol”.
Like your income, you can also link your expenses directly to payments made through your bank, marking your expense as ‘Paid’.
Expenses overview The overview feature in your expenses allows you to adjust the graphs to see a particular time period, such as quarterly. This enables you to gain a visual understand of how your expenses have occurred for your selected date range.
Accounting software: reports and overview
At the end of the month, you likely want to know how well your business has done: whether the profit exceeds the expenses and by how much? In Debitoor accounting and invoicing software, you can generate financial reports at any time, such as the P&L report and your balance sheet, in order to see exact figures.
On your homepage, you will also see graphs that illustrate income and expenses for your account for the period you select, so it takes only a glance to gain a quick understanding of how well-balanced your accounts are.
That’s how easy it can be to manage your income and expenses using online software like Debitoor.