Invoicing with Word and Excel can quickly reach its limits for an umbrella company. For a number of reasons, data is not centralized and linked, the file can become corrupted, data is easily modified, repeated manual actions can create errors, etc.
When you consider that the business model of an umbrella company is based on invoicing the activities of its freelance employees, it’s in the company’s interest to optimize its invoicing process (from reliable invoicing to follow-up on collections).
To support you in this optimization process, ERP is a good ally.
We’ll tell you why!
What is ERP?
An ERP (Enterprise Resources Planning) is a management software package that enables a company to optimize its operational processes thanks to the various modules offered by the tool.
How does ERP improve your company’s efficiency?
How does invoicing work in wage portage?
The billing process in wage portage
With wage portage, the umbrella company takes care of invoicing clients.
The contractor negotiates with the client company the price of his or her services, and then the umbrella company takes care of the administrative side (drawing up the contract, invoicing the client, etc.).
Billing methods in wage portage
There are several billing methods for wage portage.
We can identify the average daily rate (ADR), the average hourly rate (AHR) and the flat rate.
It’s up to the employee to decide which invoicing method is best suited to his or her service.
- The average hourly rate: your service is paid by the hour.
- Average daily rate, the service is paid on a daily basis.
- Flat rate: the rate is negotiated in advance for the entire service, regardless of the time spent on the project.
How can ERP help you optimize the invoicing process for freelance workers?
ERP is a tool that will enable a staffing company to automate a large part of its invoicing process, on the one hand, and centralize its entire information system, on the other. These actions are beneficial for both the umbrella company and the employee.
The benefits of ERP for the umbrella company
- Avoids multiple re-entries
By automating its invoicing process, the umbrella company reduces the need to re-enter data from the various Excel files of its employees.
- Simplifies internal processes
Data is now centralized and easily accessible to all parties involved in the billing process.
For example, the fact that the consultant fills in his activity report is enough to trigger the invoicing process.
- Time-saving business management
ERP saves time on all tasks: less time spent entering invoicing information, searching for information in Excel files, etc.
Within the software package, data is linked together, enabling the solution to offer reporting and analysis of business results.
- Improved collaborative working
ERP is also beneficial for collaborative working, as data is more easily accessible. Employees are no longer stressed by waiting for feedback from others.
- Automate your process
The various actions carried out within the integrated software package automatically update the data.
The benefits of ERP for consultants
- Access to information concerning him/her
From a central tool, or even a mobile application, the contractor can access information about his or her customers, business activity, related invoicing and so on. It is totally autonomous.
- Exchange documents more easily
The solution makes it easier for the employee to exchange documents with his or her umbrella company, as well as to consult the articles and documents provided by the umbrella company.
Features of VSP, the ERP dedicated to umbrella companies
We couldn’t end this article without talking about VSP.
VSP is a specialized ERP for umbrella companies. We offer our customers a wide range of features to support them every day.
These functions are divided into several modules: HR, sales, activity, invoicing, etc.
- Customer and business management: quotations, etc.
- Enter activities, absences and expenses.
- Automatic link to business and billing.
- Reporting to monitor activities and present numerous indicators.
- View of the Pro account showing the reverse calculation determining the employee’s pay.
- And many more besides.
To conclude on how to optimize your invoicing process with ERP
The day-to-day management of invoicing can be very time-consuming, especially when you don’t have the right tools.
An ERP system is available to support the invoicing process of umbrella companies. It’s a management tool that offers numerous benefits: automation, process simplification, time savings, etc.
And then there’s the question of finding the right ERP to run a staffing company. VSP is a software package dedicated to umbrella companies.
The solution offers a number of functions to support the day-to-day operations of the umbrella company and its contractors.
Read also
