The government wants to make the UK the best place to start and grow a business. In the autumn it will launch a public campaign to celebrate GREAT British business success stories. The government wants to inspire other small businesses and point them towards the support that can help them grow. It will also launch a new strategy for how the whole of government will back them. This will set out a range of measures to continue helping budding entrepreneurs and existing businesses succeed.
If you are a business interested in the ‘Grow Online, Expand Worldwide’ campaign, please call 02070344848 and speak to a member of the Click:Connect:Sell team.
Just 33% of small to medium-sized companies have a digital presence and only 14% sell their products online. But research suggests that if UK SMEs fully adopted online technologies, they could increase annual turnover by £18.8 billion. Here in the UK we’re twice as likely as the OECD average to buy goods online.
Putting in place a self-billing arrangement with your suppliers can bring certain advantages for your business:
it can save time and money – you can send self-billed invoices electronically so long as you can set up suitable systems
purchase invoices are produced to a standard format, making life easier for your accounts department
you retain control of how much you’re invoiced for – this can be helpful if your business is responsible for determining the value of the goods or services it receives
flexibility – you can outsource the production of the self-billing invoices to a third party if you want to
Your suppliers don’t have to be based just in the UK. You can self-bill businesses in other EU countries or in countries outside the EU.
Advantages for suppliers
If you’re a supplier, entering into a self-billing agreement with your customers can be helpful for your business because:
your customer is responsible for making sure that the VAT details on the invoices are correct
as part of the agreement with your customer you may be able to specify when you’ll receive payment – this can help with your cash flow
Self billing has been used by the Construction Industry for many years, in fact I created a Self billing system when I worked at Rollalong in 1994, the key issues are:
Getting suppliers to agree to join the self billing scheme
Getting approval from HMRC
Keeping your VAT registration records up to date
But the cost and time savings are significant, the whole process changes and could become:
Purchase Order Sent
Goods received and matched my the manager
Value of Goods received entered to accounting system – this could be automated on matching
Payment made and remittance changed to Self billing invoice
The number of queries are reduced because you aren’t invoiced for things you haven’t had, there is no need to copy and distribute invoices for sign off as this is replaced with stronger goods inward systems.