How payroll systems can modernise the invoicing process for agribusiness
Written by Daniel Hobbs, Digital Marketer & Imran Raza, CEO & Founder
Invoicing clients has traditionally been a time-consuming process for businesses, especially when it comes to data collection and creating accurate invoices with that data. However, by utilising a payroll software solution and the automatically generated payroll data, this process can be made significantly easier.
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Within this article, we will discuss how a business should only be capturing data once, how that data should be seamlessly integrating with their accounting systems, and lastly how the collected data should create a clear and detailed audit trail for the business.
Collect data once and only once
Capturing data once is a fundamental principle of efficiency within business management. By capturing payroll data at the source, businesses can save time and reduce errors associated with manually entering data into multiple systems. This means that a business only needs to input the data once, and from there, they can use it for multiple purposes, including invoicing clients. This can be done by using a comprehensive all-in-one payroll system, such as AgriSmart. By integrating data collection into the payroll system, businesses can reduce errors, increase accuracy, and further save time that can be better spent on more pressing matters within the business.
A vital part of the single data collection method is to provide any business the ability to use that data for invoicing their clients in any method they wish to use. That initial data collection should have the ability to be easily manipulated into a variety of invoicing methods such as the below:
- A cost-plus basis, which involves adding a margin to the cost of materials or labour. This allows the business to cover their costs and make a profit on the work they do.
- An hourly charge out rate, which involves the cost of an employee’s time, including factors such as their wages and salary, benefits and overhead costs associated with the job.
- A per-unit rate, which involves invoicing the clients on a unit rate such as bin rate, per metre, per ha etc.
By using the payroll data, businesses can easily track the time and costs associated with each project, making it easier to invoice clients accurately and efficiently.
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Integrating with accounting systems
When discussing invoicing and payroll systems within a business, another vital component is that system’s ability to integrate fully with a business’s accounting system, such as Xero. By having a payroll system like described earlier in this article and providing the ability for accounting system integration it ensures all the necessary data is correctly entered, used, and stored by both systems. This makes it easier for generating invoices within the payroll or the accounting system, reduces the time and effort required by the business to complete invoicing tasks, and minimises the risk of error or incorrect invoicing.
Furthermore, integrating with an accounting system means that businesses can keep track of payments and outstanding invoices, helping them to manage their cash flow more effectively. With accurate invoicing and timely payments, businesses can improve their financial stability and grow their operations with confidence.
Don’t forget the audit trail
Having a clear audit trail is critical to the invoicing process, especially when using payroll data. An audit trail in the case of invoicing is a record of all costs associated with a particular job. This provides a clear line of information showing what data was used and how it was calculated. An audit trail is essential for ensuring transparency and accuracy in the invoicing process, which can help businesses to build trust with their clients and avoid disputes. By using a payroll system and payroll data flowing into a job costing report , a clear audit trail can be established, and the business can demonstrate their commitment to accuracy and transparency in their invoicing processes.
Where to from here?
With the advent of comprehensive payroll and accounting systems it has provided the opportunity for businesses to improve their job costing and invoicing processes, making them far more efficient. Unfortunately, a large number of payroll system providers neglect the agribusiness sector due to its complicated nature. AgriSmart has realised this and developed a comprehensive system that includes all the intricacies that tailor towards an operation’s needs within this vast industry. A part of AgriSmart’s system includes a comprehensive timesheet, payroll, and job costing modules. Agrismart uses this data to generate invoices directly out of AgriSmart. The invoices are then pushed through to the clients accounting system. Additionally, the data input at the beginning of the payroll process automatically migrates across the different modules, resulting in minimal repeat data entry and significantly automating the process from start to finish.
There is officially no longer the need for agribusinesses within New Zealand and worldwide to go through the traditional and often confusing processes when invoicing.