When choosing invoicing software for your business, there are many important factors to consider: price, range of features, ease of use, and – perhaps most importantly – whether it’s localised for your country.
There are a number of different reasons why it’s important to choose software that’s specifically set up for the country your business is based in, and this blog post explores each of these reasons in detail. We also explain what to do if you select the wrong country when you sign up for Debitoor.
The right currency in your invoicing software
When you use software for managing your invoicing and accounting, there are a few key pieces of information that need to be set according to the country you’re based in: tax rates on invoices and expenses, company registration numbers, and even the terms given to different types of invoices. But one of the most fundamental things that needs to be localised is the main currency of your invoicing software.
The base currency of your account is the currency that you’ll use for setting the prices of your products, for tracking your total sales and costs, and for generating financial reports. Without the correct base currency, it becomes extremely difficult – if not impossible – to keep track of your business finances.
So if your business is based in Denmark, Sweden, or Norway, you need to use software that allows you to set your account to kroner, and if you’re a freelancer or entrepreneur based in Ireland, you shouldn’t be using a British edition of invoicing software that only allows you to set up your account in pounds.
Invoicing software with localised taxes and deductions
When issuing invoices, sales tax is a basic, fundamental piece of information that needs to be included on every invoice you issue for every taxable sale. The details of sales tax are all very country-specific – not only do the rates of sales tax vary from country to country, the names vary too, with the UK and Ireland using (VAT and Australia, New Zealand, India, and South Africa using GST. So in order to get the correct name and rate for your sales tax, you need to use invoicing software that’s tailored for your country.
Similarly, different countries have different deductions (such as CIS in the UK), and it’s likely that you’ll only be able to apply these deductions if you’re using localised invoicing software.
Invoice templates with the correct labels
In countries such as the UK, invoices should always be labelled with the word ‘Invoice’, regardless of whether or not they include tax. In many other countries such as Australia, there’s a distinction between an invoice and a tax invoice, and it’s important that you label these documents accordingly. So if you use invoicing software that hasn’t been localised or sign up to an edition designed for another country, you might find that you can’t issue correctly labelled tax invoices.
Easier reporting with invoicing software
One of the main advantages of using invoicing software is that you can generate financial reports with just a few clicks. But because accounting standards and principles vary from country to country, it’s important that all of your reports comply with the regulations where you’re based. Localised invoicing software will ensure that your balance sheets and profit and loss statements meet the specific requirements for your country.
Furthermore, in many countries, it’s now possible to report your sales tax directly to the national tax authorities through Making Tax Digital software or the German ElsterOnline system. But you’ll only be able to do this if you use software that generates VAT reports with fields localised for your country and has a direct connection with the tax authorities.
Debitoor invoicing software: localised for over 70 countries
Looking for invoicing software that’s localised for your country? Debitoor currently has over 70 editions, making it easier for freelancers and entrepreneurs around the world to manage their invoicing and accounting.
But what can you do if you’ve accidentally signed up for the wrong edition? As explained throughout this article, you’ll run into a number of different issues if you don’t use invoicing software that’s localised for the country you’re in – you should therefore delete your account and sign back up, this time selecting the correct country.
If you’ve already created a list of products, customers, and suppliers, you can easily export your data (before you delete your account) then import these lists into your new account – saving you the hassle of manually re-entering this information. If you’ve issued invoices or recorded some expenses, you won’t be able to transfer this data between accounts, but you can export all of this information so that you still have a complete record of your business finances.