Basics
Should I Add VAT to My Invoices?
The rule is quite simple and depends on the type of service your company offers and whether it is subject to VAT or not. Then, what if your company is subject to VAT (VAT liable)?. Let's see. IfPopularWhat’s a Correct or Valid Invoice? Data Checklist
When creating invoices for business transactions, whether for sales or purchases, certain key elements must be included to ensure the invoices are correct or balid. Keep in mind that these elements are essential for businesses operating in standard currencies like euros or dollars and do not apply to cryptocurrency companies. Sales Invoice Data A) CUSTOMER INFORMATION For businesses ✅ Company name. ✅ Registration number. ✅ VAT number (if applicable): Find out if you need VASome readersHow to Create Your First Invoice With Companio?
To invoice your customers, you have two options: Create an invoice quickly and just in a few clicks with our invoicing tool. Manually create and upload an invoice. It's essential to include the following information in your sales invoices: Full Name: Include the full name of the customer or entity you are invoicing. Address: Specify the recipient's address. Invoice Number: Assign a uniquSome readersWhat Happens if I Have a Business Expense but Don’t Receive the Invoice Until Later?
It may happen that your company buys something and does not receive your invoice later. But what can you do if it's quite a long time, like a month or two? Ideally, this should not happen and you should avoid doing business or buying from these types of providers. A supplier must issue an invoice shortly after you make the payment. However, if it is something punctual, it is not a serious problem. The Estonian Tax Office says that if the expense document (which meets the requirements of § 37Few readersWhat Happens if the Date of Issue of the Invoice Does Not Coincide With the Date of Payment?
The invoice date of the sale and the payment do not have to be made at the same time. It can happen that after sending the invoice it may take a few days or even a week until you receive the payment. It is important that this term is reasonable (less than a month), and that you receive the payment on the same day or before creating the invoice. For customers who do not pay on time, our recommendation is that you take some precautions when issuing invoices, and also include a late paymentFew readersIn What Currencies Can I Issue and Send Invoices?
The Estonian e-Residency program allows you to have a company with real geographical independence. This means that you can do business with all kinds of companies, customers, and suppliers. The invoicing tool included in Companio allows you to automatically generate and send invoices to your customers in any currency, not just Euros.Few readersDo I Need a VAT Number to Invoice My Customers?
You do not need a VAT number to invoice your customers, even your European customers. From the moment your company enters the company registry, you can issue invoices, but remember that you’ll need a bank account or another payment method to be paid by them.Few readersHow Do Invoicing and Sales Work in the Fulfillment by Amazon (FBA) Model?
In the FBA (Fulfillment by Amazon) model, Amazon handles the storage, packaging, and shipping of your products. The billing process typically unfolds as follows: Order Placement: The final customer initiates an order for a product listed on your online store, which Amazon fulfills. Order Processing: Order details are forwarded to Amazon, who then pick, pack, and dispatch the product from their facility to the customer. Invoicing: Amazon generates an invoice foFew readersDo I Need to Justify All Bank Movements and Invoices?
In order to perform the accounting correctly, each and every bank movement in your corporate account must have documentation to support or justify it. The Estonian authorities are very strict in that regard. Each payment to suppliers needs a purchase invoice, and all earnings from customers need an income invoice. Salaries must be declared as such, as well as dividends. Everything else, you must inform us so that we know how to declare them. The golden rule is: each invoice must have a baFew readersCan a Customer Invoice in Crypto?
No, if the company is not dedicated to offering crypto services. You can bill in euros and your clients pay you in crypto if you use a platform like BitPay or similar.Few readersWhen Can I Invoice My Customers for My Services?
Until your company has a bank account or a method to receive payments from your customers, it makes no sense to invoice your customers, as they won't be able to pay you.Few readers
Invoicing with Companio
How to Add an Invoice in a Specific Currency?
To generate an invoice in a specific currency, follow these steps: Go to the “Sales” section on the Companio platform. Click the "New Invoice" button at the top right. Then select a contact to issue the invoice or add a new one, and click "Next". Now you can select the invoice items. Use the "Currency" field to choose the correct currency for the invoice. When you are finished the system will generate the invoice document in PDF, specifying the correct currency. Make sure you applyPopularHow to Upload My Invoices Manually?
Every time you send an invoice to one of your clients, don't forget to upload it to our platform. These are the steps to follow: Log in here with your email and through the magic link or your e-resident card. Go to the “Sales” or “Purchases” section in Companio. Drag and drop the document of the invoice. You can upload it in PDF, JPG, or PNG format.We'll take care of the rest! You can also upload all the invoicesFew readersHow to Match Bank Movements with Invoices?
The invoice matching process can be conducted from two locations: A) From the Bank Movements Section Access bank movements and select the transaction you want to link. In the example, we will link it to a purchase invoice by clicking on "Match a purchase invoice," but you can also link it to sales invoices, salaries, or upload the transaction receipt and link it to the corresponding invoice from the "Upload & match with sales/purchase invoice" option. (https://storage.crisp.chat/useFew readersMy invoice was rejected, why?
Our tireless Accounting Guardian constantly checks that your invoices are accurate. If it detects that an invoice is incorrect, it will mark it as rejected and notify you so you can replace it with a proper invoice. Let's explore some typical examples: Non-business expenses Bad quality photos of receipts List of payments Screenshots of payment emails or confirmation screens (2-screenshots-of-paymenFew readersCan I Use My Current Invoicing Software With Companio?
As part of being our customer, you have access to Companio’s dashboard, allowing you to upload your sales and purchase invoices, as well as bank statements, every month, and forget about the rest. Our goal is to prevent you from having to deal with paperwork, bureaucracy, and spreadsheets and focus on growing your business. However, you can use invoicing program you want, but remember that we require you to upload invoices and bank statements to our platform before the 5th of the following moFew readersCan I Upload Multiple Invoices in a Single PDF?
Unfortunately, you can't, as we calculate your monthly fee in proportion to the number of invoices you've issued. Keep in mind that if you upload a PDF with several invoices, it will cause problems. There are two possible scenarios: If our accountants ignore the other invoices attached to the document, this can lead to errors in your accounting, incorrectly submitted reports to the authorities, and having to do the accounting again for the affected periods. Consequently, you will havFew readersWhat Happens if I Upload Invoices From Previous Accounting Periods Late?
Accounting in Estonia is done every month and the deadlines for submitting your report are very strict. We only have a couple of weeks to do the bookkeeping and generate the reports and invoices of thousands of customers. Even applying modern-day automation techniques, as in Companio, takes a little time. That's why we ask you to upload all the invoices from your previous month (sales invoices and purchase invoices) up to the 5th of the following month. If your bank account does nFew readersWhat Is the Late Document Penalty, and How Does It Affect Me?
As we explain in this article, uploading documents late prevents us from being able to comply with our obligations and submit your TSD (taxes), and KMD (VAT) reports in time. This is a problematic situation. In the best-case scenario, we need to redo your accounting for those periods. In the worst-case scenario, your company will need to pay taxes for any invoice or moveFew readersHow to Upload and Match Google Ads and Google Playstore Ads Invoices?
When you have a Google Ads account, Google App Ads account, or Google Playstore account, you may notice that the monthly invoice does not reflect the expected amount. This is because Google operates by increasing the balance each time you make a payment, and then deducts the payment for campaigns, clicks, and other expenses. Consequently, the balance is modified, and only then can you see the resulting invoice, as the image below. (https://storage.crisp.chat/users/helpdesk/website/6b9fcFew readersHow Do I Convert Amazon FBA CSV Files into Invoices Automatically Using Companio?
Follow these steps to convert Amazon FBA CSV automatically files into invoices with Companio: Navigate to the sales section and click on “add new.” Then select “Convert Amazon FBA CSV”. Upload the CSV file from your computer. (https://storage.crisp.chat/users/helpdesk/website/6b9fcea44e196000/3-111akv44i.pnFew readersHow to Properly Invoice and Report Your Google AdSense Revenue to Tax Authorities?
Some platforms, like Google, make it challenging to properly report the revenue earned through their services. Specifically, Google AdSense does not provide tools for vendors to generate invoices for the revenue they receive, which can complicate reporting to tax authorities. This FAQ will guide you step-by-step on how to issue and report invoices for your Google AdSense earnings. Generating an Invoice for Google AdSense Revenue Google AdSense does not issue or request sales invoices for thFew readersHow To Import Your Invoices In Companio With The Automatic CSV Invoice Import Functionality
The CSV Invoice Import Functionality allows our PREMIUM users to add all their invoices from a CSV file directly from the dashboard. Our system will parse a specially crafted CSV file and generate the invoices contained therein in PDF, adding them to your sales invoices automatically. Prepare the CSV report First, you need to prepare the CSV document. There is a specific format you need to follow to define your invoice entries. You can find the CSV template here (https://api.companio.co/uFew readers
Payments
How Do I Pay Freelancers and Contractors for Their Services?
The first thing you have to be clear about is differentiating whether they are professionals or individuals. Freelancers and Professionals In that case, it’s as simple for them as issuing an invoice to your Estonian company. Our suggestion is, if they are Europeans, that they obtain a VAT number. Then, if your Estonian company has a VAT number too, their invoice will indicate VAT 0%. Individuals In this case, charging for services offered to your company, depending on the country, may noSome readersHow to deal with refunds and chargebacks, and what are credit notes?
Refunds of Company Expenses If a company that charged you for a product or service issues a partial or full refund for any reason, here's how to proceed: You will have received an initial invoice from that provider for the original amount your business was charged. Let's say it was for 1,000€, so you have an outgoing payment of 1,000€ and an invoice for that amount. When they issue the refund for a certain amount, let's say 100€, you need to request a credit invoice from them for that amouSome readersCan I Pay Bills With My Personal Finances?
Yes, you can! For example, imagine you forget your business card on a trip to San Francisco and need to pay for a business expense with it. What can you do? No problem! You can pay for this expense with your personal credit card, or even in cash, but remember to ask for an invoice for your company and then let us know that you paid it with a personal account. We'll report that expense as "out-of-pocket expenses," and you can get that money refunded to your personal bank account taxFew readersCan I Pay an Invoice Using the Company's Bank Account?
You can pay 50% of your invoice using the company's bank account for subscription services, such as internet service providers. For this, the invoice must be in your name, and you can manually add the company's name and indicate that you are covering 50% of the total amount.Few readers