The Benefits of Having a GST Quotation Format in Word
By Space Coast Daily // May 26, 2022
Most small-business owners who use accounting apps don’t have an extensive bookkeeping background, so creating the right GST quotation format in Word can help you ensure that your client won’t make mistakes and ask you to correct them later on, which would only cause you more stress and effort.
Furthermore, it will save you time and effort because your clients will automatically fill out the quotation template with all the relevant information, saving you the hassle of going through their receipts and invoices by hand and creating your own template instead of using one prepared by your software’s developers.
Allows For Accurate Price Calculations
The integration of accounting apps with an invoice system makes it easy to set up automated tax calculations. This can make all the difference when you’re trying to calculate product prices quickly. For example, if you know that you need to charge your customer 10% GST and that you have 21 items in your order, it’s easy to figure out how much tax is owed on each item by multiplying 10% times 21 items and then adding them together (2.1 x 21 = 42.1).
As you integrate accounting apps into your business, keep automatic tax calculations at top-of-mind because they will allow for accurate price calculations down the road.
Easy to Use Formats Can Speed Up Order Placement
Whether you’re sending quotation templates via email or posting them on your website, make sure they’re easy to read and understand. The easier your format is to use, especially for first-time buyers, the more likely it is that customers will fill out all sections.
If they don’t feel confident enough to fill out all information fields, there’s no way they can place an order with you. Clearly layout prices and take care to ensure your contact information is correct—people won’t be able to reach you if they have questions about their quote or need help purchasing from you.
Makes Sales Processes Easier
Every business owner knows that one task that could always use more time is processing quotes. This creates frustrations for both buyers and sellers because either party may feel like they are spending too much time on phone calls or emails. However, if you were to create a template ahead of time, you can save yourself and your customer a lot of headaches during each step of the sales process.
If anything changes with your company’s prices or details (such as payment), it is easy to quickly update all past orders as well as future orders with just one click. Quotations become more efficient and customers love how it takes less time to go through order placement!
Confirms Purchase Requirements
Before you start writing, confirm that you’ve got all your requirements right. Make sure you know what information has to be included in your quotation, how many copies need to be made, and how they need to be distributed. You also have to decide who needs a copy and what order they should receive it in.
Of course, if your company is required by law to produce quotes for customers, ensure that you abide by all regulations correctly. Always double-check with an accountant or lawyer if you’re unsure about any rules and regulations pertaining to quotations!
Helps Business Owners Track Progress
Quotation templates don’t just help you get paid faster; they also help business owners track their progress. If a business owner is invoicing on time, then they can track how often and quickly they’re getting paid back. This can be important to know because it allows them to know when to push harder for payment and when not to worry so much about an unpaid invoice.
When dealing with cash flow, cash-strapped businesses need every advantage possible to compete and stay afloat. In some industries, invoice factoring is essential for survival—especially when companies don’t offer payment terms—and having a template that makes it easy for customers to pay on time could mean you go from a struggling business owner to a thriving entrepreneur overnight.
Eliminates Order Fulfillment Hassles
If you have to do a lot of follow-ups and send extra documents, your chances of getting paid decrease. By using an attractive quotation format, you’ll make it clear exactly what they’re ordering and how much they’ll need to pay. You can also add necessary disclaimers, such as special shipping requirements or payment terms. The less you have to remind your clients about their responsibilities, the easier it will be for them to place an order with you!
Help You Communicate with Prospective Buyers About Taxes Paid
If you operate out of Canada, then you need to offer your customers an invoice with their purchase. This is necessary because if you are selling products and services to buyers who live outside of Canada, then they will have to pay additional taxes to their local government.
If they don’t charge these taxes at checkout and they are caught by their local tax agency, they could be charged a fee or fined heavily. When selling products outside of Canada, it’s your job as a business owner to know whether or not you need to collect sales tax for other countries. A sales tax template can make sure that all details about your business are available for prospective buyers before making any commitments or purchasing anything from your online store.
Promotes Accountability on All Fronts
With access to your template and basic guidelines, your business partner can enter the information you need to generate invoices. They’ll be better equipped to do so, as well. With access to your template and basic guidelines, your business partner can enter the information you need to generate invoices.
They’ll be better equipped to do so, as well. With access to all of these templates, you can also hold each other accountable for following correct procedures when processing sales or expenditures within your company, which is important for keeping all books balanced and up-to-date at all times. The Better Business Bureau estimates that close to two million businesses experience identity theft every year; having documentation detailing what each party is responsible for reduces liability by adding an extra layer of security.
By now, it’s pretty clear that most small-business owners don’t have an extensive bookkeeping background. Creating a GST quotation format that looks professional is important and allows you to specify how you want your customers to deal with you. Some people prefer physical document formats while others are more comfortable with storing information on their phones or tablets.
However, if you want to win customer trust then it might be better for you to consider creating a formal format and storing them electronically as files. Think about what will work best for your company and aim for high standards when making these documents because, ultimately, they can make or break your reputation as an accountant or bookkeeper.