It’s nothing fancy, but it’s an easy way to see when I invoiced the client, and quickly run end-of-year tallies to compare the client’s 1099 to actual money received. The latter is the more important feature; you’d be shocked and horrified to realize how often corporate accounting departments get it wrong, and by how much.
But I also do something so old-fashioned that it almost seemed ridiculous… right up until the moment where my invoice-tracking file got corrupted. Now it seems like absolute genius.
Whenever my check comes in, I staple the check stubs or EFT confirmation emails onto the paper invoices. It’s my sanity check and paper backup of every invoice I’ve ever submitted. At the end of the year, I stuff them into a large envelope and toss them in an archive drawer, there for referencing if my friendly local Internal Revenue agent ever decides to have a chat with me. Or if my spreadsheet decides to give up the ghost.
Do you have any old-fashioned business practices that still work for your business?
BTW: This manual system can work well with whatever electronic system you have in place. Another writer/guest blogger, Deidre Rienzo, loves how easy FreshBooks makes her invoicing so much she wrote a “Love Letter to Freshbooks.”