ProfitBooks offers the simplest way to create professional invoices. However, creating and sending an invoice to your customer is a job half done. Most of our users tell us that it takes them average 18 days to receive money once the invoice is sent.

So, to solve this problem, we had integrated Instamojo payment gateway with ProfitBooks. That allowed our users to send a payment link along with invoices and get paid faster. However, payment gateway fee on every transaction was still a concern for many users.

Now, we are gone a step further and partnered with CashFree payment gateway service that offers extremely affordable transaction fee.

Pay just Rs. 99 or 1.9% on every transaction – whichever is lower.

No matter if the invoice amount is Rs. 10,000 or Rs. 10,00,000, you only pay maximum Rs. 99!

Your customers can pay with credit/debit card, netbanking and even with wallets like MobiKwick. Below are the transaction charges:
• Credit/Debit Card : 1.90% of the transaction amount
• Net Banking : 1.90% of the transaction amount or Rs.99 whichever is minimum.
• Wallets : 2.25% of the transaction amount.
Here are the steps to set it up:

Request For A New Account

For creating a new account, scanned copies of following documents are needed to be uploaded :

• Pan Card
• Letter of Incorporation
• Cancelled cheque

The document verification process takes around 2 business days to complete. After the account activation, the customer will be informed with an email containing the Application Id (App ID) and the Secret Key for account activation.



Configuring Payment Gateway

Login to ProfitBooks account and go to Settings -> Payment Gateways. Go to the section ‘Enable CashFree in Invoices’ and enter the details as received from ProfitBooks. The Bank account you wish to receive payments in should be the same as that of the bank account provided while activating CashFree account.

Additionally, you need to configure the expense account and expense tax account to record automated receipt and expense entries by system on behalf of you.

Expense Account: Payment Gateway Charges (if not present create an account from accounts section in ProfitBooks with the same name)

Expense Tax Account: As per the rule, the taxes to applied on gateway charges is GST @ 18 % on the purchase.



Link Generation

Now, create a new invoice or open an existing invoice. If the gateway is enabled in the account settings, a button with a caption ‘Generate Payment Link via CashFree’ appears. To ensure the identity of the customer, it is must to provide email and mobile number as shown in the screenshot below.



You can verify the details on the pop-up window that opens after clicking on the button.

In case any of the key invoice details such as amount is updated, it is required to update the payment link again. Just update the invoice and then click on ‘Update Payment Link’ button.

The history related to payment gateway can be viewed from the ‘show invoice history’ button as shown below.



 

Email Invoice Along With A Payment Link

While e-mailing invoices, check the add payment link option, then the link appears inside the textbox along with the existing mail content.



 

What Happens Once You Get Paid

After a successful transaction from your customer side, the Invoice status is marked as paid (based on the response from payment gateway),  a new receipt voucher for the received amount and an indirect expense entry along with service tax for payment gateway is generated.

 

That’s it !

Isn’t it easy to go cash free and get paid faster? Try it now.
Feel free to ask queries in the comment section below.

Also Read:
How To Integrate Instamojo With ProfitBooks
How To Write Effective Invoice Terms
How To Create Professional Invoices

The post Go Cashfree With ProfitBooks! appeared first on ProfitBooks.net.

While most of the fields are self-explanatory, please make sure you pay attention to following 3 fields:

1. Mention effective date of the tax in ‘Start Date’ field. This tax will start appearing only after the effective date.

2. Specify whether this tax is applicable on sales or purchases. You can select both the options and system will create a separate tax code for Sales and Purchases. If you select only ‘Sales’, this tax will appear only on invoices and estimates. Similarly, if you select ‘Purchases’, tax will appear on Purchases and POs. 

3. You can also specify whether this tax is calculated on the entire amount or just part of it. In some cases, businesses need to apply tax only 80% of the base price. Leave it as 100% if this case doesn’t apply to your business. 

4. Click on ‘Add Linked Tax’ if there are additional taxes applicable on the primary tax.

Adding Linked Taxes

In some cases, you might want to add additional taxes that are part of the same tax group. Lets look at some scenarios to understand how values for additional taxes will be calculated.

Lets assume that you have a product and different taxes with following sample values :
Product base price – Rs 100
Tax 1 (Primary Tax) – 15%
Tax 2 (Linked Tax) – 5%
Tax 3 (Linked Tax) – 14% of 60% of base price

Based on above assumptions, you can add any primary tax like VAT or Service Tax and add another tax on top of that. Please refer to the table below to understand possible tax values in different cases :

Deleting The Tax

In ProfitBooks, you can mark tax as inactive instead of deleting it. This way association of that tax with old transactions is preserved.

To do this, just click on the ‘Mark Inactive’ button on respective tax section when you open Taxes page.

Also Read..

How to create professional invoices and get paid faster.
How to manage business expenses.

The post How To Setup Taxes For Your Business appeared first on ProfitBooks.net.