What is reversed billing?
The literal translation of "reversed billing" is "reverse invoicing". Usually flex workers or freelancers send invoices to their clients for the services provided. In the standard invoicing process payment terms are often exceeded, because an invoice has to go through several departments at the client to be approved. With reversed billing things are handled slightly differently. Put simply, a freelancer doesn't have to send an invoice. The client immediately arranges the invoicing and payment. This saves freelancers several hours of administrative work and the client retains an overview of the administration. Reversed billing is a handy way to make the invoicing process run quickly and efficiently.
How does reversed billing work?
With reversed billing, organizations connect time tracking and the invoicing system to each other. In
a portal
kan de freelancer zijn of haar gewerkte uren registreren. Als de opdrachtgever de uren accordeert wordt er automatisch een factuur opgemaakt. Volgens
the tax authority
you must meet a number of conditions. For example, clear agreements must be made in advance about who draws up the invoice and who is responsible for its layout. The invoice must also comply with all legal rules. The invoices must be provided with an invoice number, date, address and VAT number.
What are the advantages of reversed billing?
Reversed billing streamlines the invoicing process. It offers the following advantages:
1. The correct administration
With reversed billing you prevent errors in the administrative process. There are fewer administrative steps, but also less paperwork.
2. Grip on your finances
As an employer you no longer have to wait until the freelancer has prepared the invoice. You yourself decide when you invoice the services and products delivered. Reversed billing leads to fast processing and payment. A win-win situation for both the client and the freelancer.
3. Fewer human errors
There are fewer errors in the administrative process. By automatically linking timesheets and invoices and by performing fewer manual actions, there is less room for human error. This quickly means a more streamlined process and no administrative hassle.
4. No double payment
Errors in the system are detected more quickly by applying reversed billing, so you no longer make duplicate payments. Freelancers are also paid out faster.
