If you work as a successful distributor, it’s natural that you will be sending a large number of invoices to your wholesale representatives or other businesses. With our invoicing software for distributors you can relax, knowing your paperwork is well organised and in safe hands.
What should I include on my invoice?
As a distributor, it’s vital that you follow the correct procedures when creating invoices. Due to the large amounts of each product you will likely have on hand or be able to acquire from manufacturers, it’s unlikely that you would sell a manufacturer's products directly to consumers. Rather, you will usually work with wholesale representatives who will purchase large quantities of particular products. It’s therefore essential that you invoice your wholesalers in a clear, professional manner.
Your invoice is a legal document and needs to contain the following information:
- Your name or business name, and address
- The name or company name of your customer
- A unique invoice number that fits with the numbering system that you use
- Your VAT number (if necessary)
- The date the invoice was issued
- The goods that you supply and the price
- The subtotal and total amount to be paid.
Distributors may choose to offer discounts for high-volume purchases or on orders over a certain amount. If you choose to do this, any discounts that have been applied should be clearly stated on the invoice.
Invoicing on the go
Distributors are vital to helping manufacturers reach markets they otherwise could not target. Therefore, whether you run a large distribution company or work alone, there may be times when you are out of the office, and it’s important that you can still access your invoicing software.
With the Debitoor mobile app, there’s no need to wait until you’re back at the office to complete an invoice or update an expense. As Debitoor runs in the cloud, your account data is automatically synced across all of your devices. If you record an expense on your phone, it’s immediately visible on all of your devices, and any invoices you have issued from the web app can always be viewed and edited on mobile devices on the go.
Invoicing with easy VAT reporting
If you are a VAT-registered distributor, you will have to collect VAT on your taxable sales. Debitoor invoicing software allows you to easily add VAT to your invoices and expenses with just a couple of clicks. Simply select the ‘Company’ section of your account settings and click the ‘On’ button under ‘Apply VAT to income and expenses’.
Debitoor also simplifies VAT returns for distributors with Making Tax Digital software, making it possible report your VAT directly to HMRC, through your Debitoor account.
Recording your expenses as a distributor
The strength of your distribution company lies in its ability to deliver products to a vast retail network; therefore you must coordinate the shipping and receiving of products to and from multiple warehouse locations. Developing efficient shipping and handling policies will increase manufacturers' confidence that you can safely distribute their product to a large network; this will give you more work and increase your turnover. But this will of course, also increase your expenditure.
The various warehousing costs you may incur as a distributor include rent, salaries of warehouse managers, electricity expenses, supplies and utilities, and any specialised equipment that is required. Transportation between warehouses and wholesale representatives will also create costs including, manpower for loading and unloading products, insurance of products, repairs and maintenance of vehicles, and salaries of truck and vehicle drivers.
With all of these things to consider, it’s vital that you keep a thorough record of your expenses. With Debitoor invoicing software, it is easy to register your expenses so that you have a complete overview of how your business is doing. Documenting your expenses will also help you to see where savings could be made in the future.