How to manage the invoicing of a vehicle rental?

Managing the invoicing of a vehicle rental is just as important as the reservation and the contract. How do you optimize it?

 

The management of the invoice of a vehicle rental is essential for a vehicle rental company in how it deals with its customers. Above all, the invoice makes it possible to materialize the financial transaction related to the rental and constitutes a supporting document for accounting and tax purposes. You will find in this article the key elements to understand the legislation and the organization that surrounds the invoicing in the vehicle rental industry and our advice to optimize the invoicing of the rental thanks to software that is fit for purpose.

What are the rules to follow in managing the invoicing of a car rental?

The management of the invoicing of a vehicle rental is regulated by law and includes several rules. These criteria for invoicing a vehicle rental mainly relate to the obligation to invoice the rental, the date of invoice delivery, the way the invoice is sent, the use of software, the indication of mandatory mentions on the invoices and the conservation of the latter. Invoicing is mandatory in vehicle rental, whether it is the rental of a passenger car, utility vehicle, truck, motorcycle or scooter, in short, medium or long term leases.

 

It is possible to outsource your car rental billing management to someone else who can then issue them in your name and on your behalf. The rental invoice must be issued once the rental service is completed as it is not uncommon to have fuel, mileage or extra days that need to be billed to the customer. The invoice must be issued in duplicate: one copy of the invoice to be given to the customer and a second copy to be kept for the vehicle rental company.

 

Vehicle rental invoices can be issued in paper or electronic format. Electronic invoicing is permitted if the vehicle rental company uses electronic signature and sends them online. In addition, the invoices that you draw up in the context of vehicle rental must include several mandatory items of information, under penalty of legal sanction if the information is missing.

 

Managing the invoice of a vehicle rental is also evolving in order to keep up with the digital transition of businesses. It is therefore now mandatory to use management software that meets the conditions of inalterability, security, conservation and archiving of data for invoicing since 2018. This is great timing, there is a software tool specially designed for vehicle rental, we will come back to this later.

How to organize the invoicing of a car rental?

Organising the invoicing of a vehicle rental includes a complete process from the initiation of the invoice to the follow-up of its collection. First, clearly define when a customer should be billed. Keep in mind that the sooner the customer is billed, the sooner a vehicle rental company will receive payment. Next, clearly define the billing process: who is in charge of billing the vehicle rental?  How is the billing information communicated to the customer? How is the invoice passed on to the customer? How do you ensure that the invoice is monitored?

 

It is also necessary to clearly define the invoicing follow-up procedure for the vehicle rental. Following up on the payment of the issued invoices and reminding customers of payment delays are important and difficult tasks for the vehicle rental company. It is necessary to clearly define this process to optimize customer collections and thus the cash flow of the vehicle rental company. Customer recontacts must be carried out quickly as soon as you notice that payment is overdue. Do not hesitate to contact the customer to check with him if, after several reminders, you still have not receive payment for your invoices. These last two points are crucial for a proper management of the invoices of a car rental.

Why use software to manage the invoicing of a car rental?

To save time and gain in efficiency, it is preferable and above all mandatory to use software to manage the invoicing of a car rental. Many reliable software manufacturers offer solutions to establish invoices that comply with the current laws while obtaining the necessary updates with each change in legislation. It is strongly recommended to use a software adapted to the car rental business.

 

Thanks to its experience in rental and development, hitechsoftware has created the myrentcar vehicle rental software to optimize the management of the rental and invoicing. Myrentcar meets the requirements of inalterability, security, conservation and archiving of data. Accessible on computer, tablet and smartphone to meet the mobility needs of rental companies and fleet managers, the myrentcar web-based vehicle rental solution allows you to manage your rental and your fleet simply via an intuitive schedule. The tool thus covers all stages of the rental process, from booking and drawing up the rental contract to invoicing and transfer of the invoices to accounting. Thanks to its numerous functionalities and customizable options, Myrentcar facilitates and greatly optimizes invoice management in vehicle rental, but also financial management and customer management.

 

The Myrentcar vehicle rental management ERP is also compatible with our comprehensive solution for electronic invoicing. The electronic invoice will then enable you to reduce the cost of processing an invoice, automate tasks and store, secure and archive your data to optimize the management of car rental invoices. Would you like to find out more? Do not hesitate to contact our teams for advice and a demonstration of our web-based car rental solution. Find more information about the myrentcar car rental software here.