The accounting of a Self-employed may seem simple at first glance, but it has many pitfalls that new and experienced entrepreneurs can easily encounter. Among the most important aspects to manage well, we find theIssuance of invoices, the VAT and the management of quote. These items, while seemingly simple, can lead to costly mistakes if not handled carefully. In this article, we are going to explore the most common mistakes that micro-entrepreneurs should avoid when it comes to accounting, especially when it comes to invoicing, of management of the VAT, of the creation of quote and other essential aspects.
One of the most common mistakes concerns the mandatory information to be included on invoices. Whether you are a Self-employed Or a micro-entrepreneur, you are required to comply with legal billing requirements. According to the General Tax Code (CGI), all invoice issued must include certain essential information, under penalty of sanctions. The following statements must absolutely be present:
The mentions relating to the VAT are particularly important for auto-entrepreneurs who do not benefit from the VAT exemption. Those who are subject to the VAT must indicate it on their invoices, while those exempt from VAT must mention the mention “VAT not applicable” under section 293 B of the CGI. Omitting any of this information may result in a tax audit, fines, or difficulties in recovering payments.
Another common mistake is the absence of invoice numbering or a disorganized numbering system. Each invoice must receive a unique number and be numbered in such a way chronological. The numbering system must be continuous, without interruptions or duplicates, in order to guarantee the traceability transactions and to avoid any confusion in accounting.
The numbering of invoices is essential to be able to make correct references in your Recipe register and to fill your tax declarations in complete transparency. A good numbering system also makes it easy to track the history of invoices and facilitate their management over time. If you have a large number of invoices, a invoicing software Or a Excel template to track the numbering and other relevant information can greatly simplify this task.
Not meeting payment deadlines or forgetting to follow up with customers in the event of an unpaid invoice is a common mistake that can seriously damage your cash flow. auto-enterprise. AsSelf-employed, you are responsible for the proper management of your treasury, and late payments can quickly become a problem if you don't take the right steps. When you start a business relationship, it is essential to establish clear and precise payment terms, whether in your contracts or on your quote. You have the right to impose payment deadlines defined, usually around 30 days, but this should be specified clearly from the start to avoid ambiguity.
Vigilance is required, because any late payment can disrupt the management of your finances and cause an imbalance in your treasury. If a customer exceeds the agreed deadline, it is crucial not to wait too long to complete a relaunching. This relaunching should be completed quickly, ideally as soon as the deadline has expired, in order to maintain a good communication with the customer and to guarantee that he does not forget his debt. Start with a contact friendly, for example by telephone, to remind the customer of the date of payout and discuss the situation. A courteous but firm approach often makes it possible to find an amicable solution and to avoid a situation of prolonged non-payment.
If the telephone follow-up does not give results, it is important to follow up with a registered mail Or a email In which you Remember the terms of payment originally agreed upon and the unpaid bill. Do not hesitate to mention the legal consequences possible in the event of non-regulation of the debt, such as late fees or a formal notice, but always in a professional and respectful environment. It is also essential to keep a paper trail of all your communications with the customer regarding payment.
Ignoring this recovery process can have long-term financial consequences. In the absence of follow-up, late payments repetitive can build up and disrupt your cash flow, making it more difficult to pay for your own expenses and to invest in the development of your business. In the long term, this can have a direct impact on the profitability Of your auto-enterprise and its sustainability. Proactive management of unpaid bills will not only allow you to maintain a good professional relationship with your customers, but also to maintain the financial balance of your business.
In addition, in case of unpaid bill extended, it may be necessary to call in a debt collection service or even to take legal action if the situation is not resolved amicably. However, these steps can be time consuming and expensive, which makes it even more important to manage reminders as soon as an invoice becomes overdue. Adopt a systematic and rigorous approach to monitor your unpaid bills will help you avoid such situations and maintain a healthy cash flow.
THESelf-employed Who sells both products And provision of services can sometimes confuse the billing rules for these two types of activities. It is essential to distinguish between them well, as they can have different tax implications.
For example, a micro-entrepreneur who provides services and who is exempt from VAT must specify in its invoices That the VAT is not applicable under the Exemption based on VAT. However, if theSelf-employed sells physical products, he must ask himself the question of whether he should charge the VAT according to its turnover and its tax regime. It is important to fully understand the distinction between these two types of vending in order to establish invoices correct and avoid mistakes.
Another common pitfall lies in the management of quote And invoices. It is essential to create a quote before starting a service provision Or a sale of product. The quote constitutes a commitment to the customer, detailing the conditions of sale (price, deadline, quantity, etc.). During the broadcast of invoice, it is important to match the information in the quotation with the information in the invoice.
In addition, the quote and invoices must be clearly linked by common references so that the customer and the administration can easily establish a link between the two documents. Do not indicate the quote reference on the bill can cause confusion and complications for your bookkeeping. Les quote and invoices should therefore be carefully managed to avoid ambiguity, and the use of a invoicing software can greatly simplify this management.
Even if the auto-entrepreneurs benefit from a simplified regime of VAT, it is always important to know if you are subject to or exempt from VAT. Do not check your status compared to the VAT or Confusing exemptions can lead to costly mistakes. As micro-entrepreneur, you can be exempt from VAT if you benefit from the Exemption based on VAT, but you still have to Mention clearly this exemption on your invoices.
If you Invoice VAT incorrectly, this could lead to tax adjustments in the event of an audit, as well as penalties. So make sure you know your VAT status well and adjust your bills accordingly.
The use of invoice templates free or poorly designed can also lead to errors. A model of invoice poorly designed may not include all of the information mandatory or be poorly structured, which complicates the management of your bookkeeping. It is essential to use a invoice template that respects the fiscal and accounting rules in force.
In addition, it is advisable to opt for a invoicing tool that allows you to edit electronic invoices, to follow the unpaid bills and generate clear reports to simplify your tax declarations. Tools like Excel, Word or software dedicated to invoicing (like Quickbooks or Sage) can greatly facilitate this management.
The management of the bookkeeping For a Self-employed requires rigor and attention. There are a lot of errors that can occur when creating invoices, of the use of quote, of the management of VAT, and the issuance of the documents necessary to monitor the activity. However, by remaining attentive to Mandatory mentions, following a consistent numbering of invoices, by mastering the rules relating to VAT and by using the right tools, you can avoid most of the common mistakes.
La good management Of invoices, of quote And of your tax declarations will allow you to guarantee the sustainability of your micro business and to avoid future complications withUrssaf or the tax administration. Take time for yourself To form and to use the right tools, this will save you money times and will save you from costly mistakes in the long run.
