It might sound cliché, but why do invoicing questions still dominate client inquiries for an operational EOR team?
Invoices are crucial—they’re the backbone of transactions between service providers and clients, and they play a key role in accounting controls and audits. Any missing detail can lead to issues like delayed payments or time-consuming discrepancies.
Let’s focus on the impact of an undiscussed invoice with an onboarding client. Often, invoice templates are discussed late in the onboarding process or not at all. This oversight leads to a flurry of questions from the client’s AP team once the first invoice is sent.
Here are some key items to discuss with your clients:
- GDPR Requirements: Ensure you have justification for processing personal data and don’t keep records longer than necessary.
- Invoice Details: Make sure your client has everything needed to process a payment, such as PO numbers or specific entity details. Missing a PO number can result in over 40 emails and take up to 20 days to resolve.
- Consolidated vs. Aggregated Invoices: Some clients prefer one payment per month, while others need an invoice per worker on a specific day. Agree on the format to avoid payment delays.
- Currency: Employment costs are in local currency, but invoices are often in the provider’s preferred currency, introducing FX issues. Agree on an FX source and highlight the rate and date on the invoice.
- Itemization: Each country has unique employment cost breakdowns. A clear, simple cost report goes a long way. Customizing this report shows clients you care about them and ensures timely payments.
- First Invoice To-Do’s: Provide a guide on how to read your invoice, identify items, and summarize contractual terms (payment terms, FX, due date, etc.). This sets the pace for future payments.
In conclusion, YES, a perfect invoice exists if created with the client in mind and with the right expectations set from the beginning. As the saying goes, “When you receive a payment notification just minutes after sending the invoice, you feel like you’ve won the lottery.”
Happy invoicing from the Quad!
