Managing Clients in Factumo

Managing your client database effectively is crucial for smooth invoicing and Spanish tax compliance. This guide covers everything from adding new clients to maintaining accurate records and organizing your client list.

Why Client Management Matters

Accurate client information ensures:

• Tax compliance - Correct tax IDs (NIF/CIF/VAT numbers) on all invoices
• Fast invoicing - Pre-filled client details save time
• Clear records - Complete audit trail for tax authorities
• Professional image - Error-free invoices build trust
• Easy reporting - Track revenue by client, analyze payment patterns

Spanish tax law requires invoices to contain complete, accurate client information. Getting this right from the start prevents compliance issues and invoice corrections later.

Before You Start

Make sure you have:

1. Client's legal information - Full legal name and tax ID
2. Complete address - Street, postal code, city, country
3. Contact details - Email address (required for sending invoices)
4. Tax status - Are they Spanish, EU, or international?

Having this information ready makes adding clients quick and error-free.

Adding New Clients

Step 1: Navigate to Clients

From your dashboard, click Clients in the main navigation, then click Add Client in the top right.

Step 2: Enter Basic Information

Client Type

Select the type of client you're adding:

• Business - Companies, partnerships, organizations (B2B)
• Individual - Consumers, freelancers operating as individuals (B2C)

This determines what fields are required and which tax ID formats are valid.

Legal Name

Enter the client's official legal name exactly as it appears on their tax documentation:

For businesses:

• Use complete registered company name
• Include legal entity type (S.L., S.A., Autónomo, etc.)
• Match their official tax registration

Examples: "Desarrollo Web Madrid S.L.", "Juan Pérez Autónomo"

For individuals:

• Use full legal name (first name and surnames)
• Match their NIF/NIE documentation

Examples: "María García López", "John Smith"

Important: This name appears on invoices and must match the tax ID for legal compliance.

Commercial Name (Optional)

If the client operates under a different trading name:

Example:

• Legal name: "Innovación Digital Madrid S.L."
• Commercial name: "DigitalMad"

The legal name appears on invoices, but you can search by commercial name in the client list.

Step 3: Tax Identification

The tax ID is the most critical field for Spanish compliance. Factumo validates format and checksum automatically.

Spanish Clients (NIF/CIF/NIE)

NIF (Número de Identificación Fiscal):

• For Spanish nationals
• Format: 8 digits + 1 letter (e.g., "12345678A")
• Letter is a checksum digit calculated from the numbers

CIF (Código de Identificación Fiscal):

• For Spanish companies and organizations
• Format: 1 letter + 7 digits + 1 letter/digit (e.g., "B12345678")
• First letter indicates entity type:
  • A: Corporations (S.A.)
  • B: Limited companies (S.L.)
  • C: General partnerships
  • D: Limited partnerships
  • E: Communities of property
  • F: Cooperative societies
  • G: Associations
  • H: Communities of owners
  • J: Civil societies
  • N: Foreign entities
  • P: Local entities
  • Q: Autonomous organizations
  • R: Religious congregations
  • S: Government agencies
  • U: Temporary unions
  • V: Other types
  • W: Permanent establishments of non-residents

NIE (Número de Identidad de Extranjero):

• For foreign residents in Spain
• Format: 1 letter (X, Y, or Z) + 7 digits + 1 letter (e.g., "X1234567A")
• Same checksum algorithm as NIF

Validation: Factumo automatically validates the format and checksum. If you see an error, double-check the number with the client.

EU Clients (VAT Numbers)

For clients in other EU countries, use their VAT number (Intra-Community VAT):

Format: 2-letter country code + national VAT number

Examples:

• France: "FR12345678901" (FR + 11 digits)
• Germany: "DE123456789" (DE + 9 digits)
• Italy: "IT12345678901" (IT + 11 digits)
• Portugal: "PT123456789" (PT + 9 digits)
• United Kingdom: "GB123456789" (GB + 9 or 12 digits)

Validation: Factumo validates format and can check against the EU VIES database to verify the VAT number is registered.

Important for EU B2B: Valid VAT numbers qualify for reverse charge mechanism (0% VAT on your invoices).

International Clients (Non-EU)

For clients outside the EU:

• Tax ID: Enter their national tax ID if available
• Alternative: Use passport number or business registration number
• Format: No strict format required (varies by country)

Note: International clients typically receive 0% VAT invoices (export exemption).

No Tax ID Available

If a client has no tax ID (rare for B2B, more common for B2C consumers):

• Spanish consumers: Still should have NIF (nearly all Spanish residents have one)
• Foreign tourists: Can use passport number as reference
• Cash customers: Mark as "No tax ID" and add note explaining why

Warning: Invoices without proper tax IDs may be rejected during tax audits. Use sparingly and document the reason.

Step 4: Contact Information

Email Address (Required)

Enter the client's email address for sending invoices:

• Primary contact - Main billing email
• CC recipients - Additional people to receive invoices (optional)
• Validation - Factumo checks format is valid

Best practice: Verify the email with the client to avoid delivery issues.

Phone Number (Optional)

Add phone number for direct contact:

• Format: Include country code for international clients (+34 for Spain)
• Use: Customer support, payment follow-ups, urgent matters

Example: "+34 912 345 678" or "+44 20 1234 5678"

Website (Optional)

Enter the client's website if applicable:

• Format: Full URL including https://
• Use: Quick reference, research before meetings

Step 5: Address Information

Complete address is required for Spanish invoices.

Street Address

Enter the complete street address:

• Street name and number - "Calle Gran Vía, 28"
• Building details - Floor, door, office if applicable
• No abbreviations - Write out "Calle" not "C/"

Good: "Calle de Alcalá, 42, Piso 3, Oficina B" Bad: "C/ Alcalá 42"

Additional Address Line (Optional)

Use for:

• Floor and door numbers
• Building names
• Office suites
• Special delivery instructions

Example: "Edificio Norte, Planta 5, Oficina 512"

Postal Code

Enter the postal code:

• Spanish: 5 digits (e.g., "28013" for central Madrid)
• International: Format varies by country

Tip: Spanish postal codes' first 2 digits indicate province (28 = Madrid, 08 = Barcelona, etc.)

City

Enter the city name:

• Use official name: "Madrid" not "madrid"
• Include district if needed: "Barcelona (Eixample)"

Province/State

Enter the province (Spain) or state (international):

• Spanish provinces: Use official names (Madrid, Barcelona, Valencia, etc.)
• International: State, region, canton as applicable
• Autonomous communities: Use province, not community (e.g., "Barcelona" not "Cataluña")

Country

Select from dropdown:

• España - For Spanish clients
• Other EU countries - Select from list
• International - Select from full country list

Country determines tax ID validation rules and VAT treatment.

Step 6: Classification and Organization (Optional)

Help organize your client list with these optional fields.

Client Tags

Add tags for filtering and grouping:

Examples:

• "VIP" - Important clients
• "Monthly Retainer" - Recurring clients
• "Web Design" - Service category
• "Late Payer" - Payment history flag
• "2025-Q1" - Time period

Usage: Filter client list, bulk operations, reporting

Client Categories

Assign to categories for better organization:

Examples:

• "Tech Startups"
• "E-commerce Clients"
• "Local Businesses"
• "International"
• "Government"

Usage: Revenue reports by category, targeted communications

Internal Notes

Add notes visible only to your team:

• Special billing arrangements
• Payment preferences
• Project history
• Communication preferences
• Contact person details

Example:

Preferred payment method: Bank transfer
Always CC the CFO (cfo@client.com) on invoices
Project manager: Ana Martínez (ana@client.com)
Net 45 payment terms agreed (instead of standard Net 30)

Step 7: Payment Preferences (Optional)

Set client-specific payment settings.

Default Payment Terms

Override your standard payment terms for this client:

• Net 15 - Fast-paying clients
• Net 45 - Agreed extended terms
• Net 60 - Maximum legal limit for B2B in Spain
• Custom - Specific due date calculation

Example use case: VIP client has negotiated Net 45 instead of your standard Net 30.

Preferred Payment Method

Note how this client typically pays:

• Bank transfer (most common B2B in Spain)
• Credit card
• Cash
• Check (rare)
• Digital payment (PayPal, Stripe, etc.)

Use: Pre-fill payment instructions on invoices, payment reminders

Custom Invoice Footer

Add client-specific text to appear on their invoices:

Examples:

• Project reference numbers
• Purchase order requirements
• Specific payment instructions
• Contract references

Example:

Por favor incluir número de pedido en la transferencia bancaria.
Referencia del contrato: CTR-2025-042

Step 8: Save Client

Review all information for accuracy, then click Save Client.

What happens next:

• Client added to your database
• Tax ID validated against format rules
• Available immediately for invoice creation
• Appears in client list and dropdowns

Viewing Client Information

Client List

Navigate to Clients to see all clients in a table view:

Default columns:

• Name - Legal or commercial name
• Tax ID - NIF/CIF/VAT number
• Email - Contact email
• Location - City, country
• Total invoiced - Lifetime revenue from this client
• Outstanding - Unpaid invoice balance

Client Detail View

Click any client to see comprehensive details:

Information tabs:

• Overview - Basic information, contact details, address
• Invoices - All invoices issued to this client
• Estimates - All estimates sent
• Payments - Payment history and records
• Activity - Audit trail of changes
• Notes - Internal notes and tags

Quick actions:

• Create Invoice - New invoice for this client
• Create Estimate - New estimate/quote
• Edit Details - Update information
• View History - See all transactions
• Export Data - Download client information

Client History

The history view shows:

Invoices:

• All invoices (draft, sent, paid, overdue, cancelled)
• Total amounts and payment status
• Quick access to invoice PDFs

Estimates:

• Sent estimates/quotes
• Acceptance status
• Converted to invoices

Payments:

• Payment dates and amounts
• Payment methods
• Outstanding balances

Key metrics:

• Total invoiced (all time)
• Total paid
• Average invoice value
• Average payment time
• Overdue amounts

Use cases:

• Review client relationship before pricing decisions
• Identify payment patterns (fast or slow payers)
• Prepare for client meetings
• Analyze profitability by client

Editing Client Information

Editing Active Clients

To update client information:

1. Navigate to Clients
2. Click the client name
3. Click Edit Client
4. Modify fields as needed
5. Click Save Changes

You can change:

• Contact information (email, phone)
• Address
• Tags and categories
• Internal notes
• Payment preferences

Be careful changing:

• Legal name
• Tax ID

Why? Changing legal name or tax ID affects existing invoices in your records. Only change if:

• Client legally changed their name (merger, rebranding)
• Original tax ID was entered incorrectly
• Client provided updated information

Note: Changes don't affect already-issued invoices. Those retain the information that was current when issued.

Impact on Existing Invoices

Draft invoices: Updated information applies immediately (drafts aren't finalized yet)

Finalized invoices: Keep original information for compliance and audit trail

Future invoices: Use updated information

Example scenario:

1. Client moves to new office
2. You update their address
3. Old invoices: Show old address (correct for when issued)
4. New invoices: Show new address (current location)

This maintains accurate historical records.

Client Types and Tax Treatment

Understanding client types ensures correct VAT treatment on invoices.

Spanish Domestic Clients

Who: Clients with Spanish tax ID (NIF/CIF/NIE) and Spanish address

VAT treatment:

• Apply standard Spanish VAT rates (21%, 10%, 4%)
• Collect VAT and remit to Agencia Tributaria
• Standard Spanish invoice requirements

Most common scenario for Spanish businesses.

EU Business Clients (B2B)

Who: Businesses in other EU countries with valid VAT number

VAT treatment:

• Reverse charge mechanism applies
• Charge 0% VAT on invoice
• Client pays VAT in their own country
• Add note: "Inversión del sujeto pasivo - Art. 196 Directiva 2006/112/CE"

Requirements:

• Valid EU VAT number verified in VIES
• Business-to-business transaction (not B2C)
• Service place of supply rules apply

Example invoice line:

Service: Web development
Amount: €2,000.00
VAT: 0% (Reverse charge)
Note: IVA no aplicable - Inversión del sujeto pasivo

EU Consumer Clients (B2C)

Who: Individuals in other EU countries (no VAT number)

VAT treatment:

• Complex rules based on service type
• Physical goods: VAT of destination country (if over threshold)
• Digital services: VAT of customer's country (if over €10,000)
• Most other services: Spanish VAT applies

Recommendation: Consult with tax advisor for EU B2C scenarios.

International Clients (Non-EU)

Who: Clients outside the European Union

VAT treatment:

• Export exemption - 0% VAT
• Add note: "Exenta de IVA - Exportación de servicios"
• Keep proof of export (service delivery abroad)

Requirements:

• Service delivered outside EU
• Documentation proving delivery
• Client located outside EU

Example:

Client: TechCorp Inc. (USA)
Service: Software development
Amount: $5,000.00
VAT: 0% (Export)
Note: Exenta de IVA - Exportación de servicios

Recargo de Equivalencia

Who: Spanish retailers under recargo de equivalencia regime (mostly small shops)

VAT treatment:

• Apply standard VAT rates (21%, 10%, 4%)
• Also apply recargo de equivalencia surcharge (+5.2%, +1.4%, +0.5%)
• Total rate higher than standard (e.g., 26.2% = 21% VAT + 5.2% recargo)

How to identify: Client's invoices to you show recargo de equivalencia

In Factumo: Enable recargo field for these clients in client settings

Organizing Your Client List

Search and Filter

Search by:

• Client name (legal or commercial)
• Tax ID
• Email
• City
• Tags

Filter by:

• Country - Show only Spanish, EU, or international clients
• Tags - Filter by assigned tags
• Category - Show specific client categories
• Status - Active vs. archived clients
• Payment status - Clients with overdue invoices

Sort by:

• Name (A-Z or Z-A)
• Total invoiced (highest to lowest revenue)
• Last invoice date (recent or oldest first)
• Outstanding balance (who owes you money)

Using Tags Effectively

Revenue-based:

• "VIP" - Top revenue clients
• "High Value" - Large contract clients
• "Small Business" - Lower-volume clients

Service-based:

• "Web Development"
• "Consulting"
• "Monthly Retainer"
• "One-time Project"

Status-based:

• "Active" - Current projects
• "Inactive" - No recent work
• "Seasonal" - Predictable patterns

Payment-based:

• "Fast Payer" - Pays within 7 days
• "Net 30" - Standard payment
• "Late Payer" - Requires follow-up

Time-based:

• "2025-Q1" - When relationship started
• "New Client" - First 6 months
• "Long-term" - Multi-year relationship

Categories for Reporting

Set up categories that align with your business:

By industry:

• Technology
• Retail
• Healthcare
• Education
• Government

By geography:

• Local (same city)
• National (Spain)
• EU
• International

By business model:

• Recurring revenue
• Project-based
• Product sales
• Hybrid

Use categories to analyze revenue by segment, pricing strategies, and growth opportunities.

Importing Client Data

If you're migrating from another system, import clients in bulk.

Preparing Import File

Create a CSV or Excel file with these columns:

Required fields:

• Legal name
• Tax ID
• Email
• Street address
• Postal code
• City
• Country

Optional fields:

• Commercial name
• Phone
• Website
• Address line 2
• Province/state
• Tags (comma-separated)
• Category
• Internal notes

Example CSV:

Legal Name,Tax ID,Email,Street,Postal Code,City,Country
"Desarrollo Web S.L.","B12345678","info@desarroweb.es","Calle Mayor 15","28013","Madrid","España"
"Tech Solutions Inc.","GB123456789","hello@techsol.co.uk","123 High Street","SW1A 1AA","London","United Kingdom"

Importing Process

1. Go to Clients → Import
2. Download the template file
3. Fill in your client data
4. Upload completed file
5. Review field mapping
6. Validate data
7. Confirm import

Validation checks:

• Tax ID format validation
• Duplicate detection
• Email format validation
• Required fields completed

Result: Clients added to database, ready for invoicing immediately.

Handling Import Errors

Common issues and solutions:

Invalid tax ID format:

• Check format matches country requirements
• Include all prefix/suffix letters
• Verify checksum digit correct

Duplicate clients:

• Choose: skip duplicate, update existing, or import as new
• Factumo detects duplicates by tax ID

Missing required fields:

• Complete all required columns
• Use "N/A" or placeholders if truly unavailable
• Add proper information later

Exporting Client Data

Export client information for backups, analysis, or migration.

Export Formats

CSV:

• Tabular data
• Import into Excel, Google Sheets
• Use for analysis, mail merge

Excel:

• Pre-formatted spreadsheet
• Multiple sheets (info, invoices, payments)
• Ready for reporting

VCard:

• Contact cards
• Import into email client, CRM
• One card per client

Exporting Process

1. Go to Clients
2. Apply filters (export all or subset)
3. Click Export
4. Choose format
5. Select fields to include
6. Download file

Export includes:

• All client information
• Contact details
• Addresses
• Tags and categories
• Total invoiced amounts
• Outstanding balances
• Payment statistics

Use cases:

• Quarterly backups
• CRM synchronization
• Mail merge for announcements
• Revenue analysis in Excel
• Tax advisor documentation

Archiving vs. Deleting Clients

Archiving Clients

When to archive:

• No longer working together
• Inactive for 12+ months
• One-time project completed
• Keeping for reference only

How to archive:

1. Open client detail
2. Click Archive Client
3. Confirm action

What happens:

• Client hidden from main list
• Historical invoices retained
• Still appears in reports for date ranges when active
• Can be unarchived anytime
• No data deleted

Benefits:

• Clean client list (only active clients)
• Preserve complete history
• Compliance with 7-year retention
• Can reactivate if client returns

Deleting Clients

When to delete:

• Created by mistake (duplicate, test data)
• No invoices ever issued
• Incorrect information that can't be fixed

Restrictions:

• Cannot delete clients with finalized invoices (legal requirement)
• Can only delete clients with no invoice history or only draft invoices

How to delete:

1. Ensure no finalized invoices exist
2. Delete or reassign any draft invoices
3. Open client detail
4. Click Delete Client
5. Confirm permanent deletion

Warning: Deletion is permanent and cannot be undone. Archive instead when in doubt.

Client Portal Access (Coming Soon)

Future feature: Allow clients to access their own information.

Planned features:

• View invoices and estimates
• Download PDFs
• See payment history
• Update their contact information
• Communicate with you

Use case: Reduce support requests, empower clients to self-serve

Best Practices for Data Quality

Verify Tax IDs Immediately

Why: Invalid tax IDs can invalidate invoices for tax purposes

How:

• Ask clients to provide official documentation
• Verify format matches country standards
• Use Factumo's automatic validation
• For EU VAT numbers, check VIES database
• When in doubt, request copy of tax certificate

Spanish NIF/CIF validation:

• Factumo checks checksum digit automatically
• Green checkmark = valid
• Red error = incorrect format or checksum
• Don't ignore validation errors

Keep Addresses Complete and Current

Why: Required on Spanish invoices, used for tax jurisdiction

How:

• Collect complete addresses upfront
• Verify with client if uncertain
• Update promptly when client relocates
• Include postal codes (required)
• Don't abbreviate (write "Calle" not "C/")

Quarterly review: Ask active clients to confirm address is current

Maintain Clean Email Lists

Why: Invoices sent to wrong email delay payment

How:

• Test email when adding new client (send welcome message)
• Update immediately if emails bounce
• Ask for alternative contact if primary email unreliable
• Add CC recipients for important clients
• Verify before sending first invoice

Use Tags and Categories Consistently

Why: Enables meaningful reporting and filtering

How:

• Define standard tag list (don't create random tags)
• Use consistent naming (not "VIP", "V.I.P.", and "Very Important")
• Document what each tag/category means
• Review and consolidate periodically
• Train team on proper usage

Example standard tags:

Revenue tier: VIP, High Value, Standard, Small
Status: Active, Inactive, Seasonal, New
Payment: Fast Payer, Standard, Late Payer
Service: Web Dev, Consulting, Retainer, Products

Regular Data Cleanup

Monthly:

• Review new clients for data quality
• Fix any validation warnings
• Update contact information from recent correspondence

Quarterly:

• Archive inactive clients
• Remove duplicate entries
• Verify top clients' information is current
• Update tags to reflect current status

Annually:

• Full audit of all client data
• Contact clients to verify information
• Export backup of complete database
• Review and optimize tags/categories

Common Issues and Solutions

Issue: Tax ID Validation Error

Cause: Incorrect format, checksum error, or invalid number

Solution:

1. Double-check number with client documentation
2. Verify format includes all letters (prefix/suffix)
3. Ensure checksum digit correct
4. For CIF: verify first letter matches entity type
5. For EU VAT: check VIES database online
6. Request official tax certificate from client if needed

Issue: Client Has Multiple Tax IDs

Cause: Different entities, subsidiaries, or international branches

Solution:

• Create separate client record for each legal entity
• Use commercial name to distinguish
• Add notes explaining relationship
• Tag all related entities (e.g., "Grupo ABC")
• Never combine multiple tax IDs on one record

Example:

Client 1: "ABC España S.L." (CIF: B12345678)
Client 2: "ABC France SARL" (VAT: FR12345678901)
Tag both: "ABC Group"

Issue: Duplicate Client Records

Cause: Client added multiple times with slight variations

Solution:

1. Identify the correct/most complete record
2. Reassign invoices from duplicates to correct record
3. Export duplicate data for reference
4. Delete or archive duplicates
5. Add note explaining consolidation

Prevention: Search before adding new clients

Issue: Client Changed Legal Structure

Cause: Business transformation (e.g., autónomo became S.L.)

Solution:

• Create new client record with new tax ID and legal name
• Archive old client record (keep invoice history intact)
• Add cross-reference notes on both records
• Tag both with same identifier
• Future invoices use new entity

Note: Don't edit tax ID on existing record - creates compliance issues with historical invoices

Issue: International Client Needs Invoice in Their Language

Cause: Language preference or legal requirement in their country

Solution:

• Factumo supports multiple languages (English, Spanish, Swedish, Norwegian)
• Set preferred language in client record
• Invoices generate in selected language
• Keep Spanish version for your tax records

Integration with Invoicing

Quick Invoice Creation

From client detail view:

1. Click Create Invoice
2. Client information pre-filled automatically
3. Correct tax ID already populated
4. Appropriate VAT treatment suggested (based on country)
5. Just add line items and create

Time saved: 2-3 minutes per invoice

Automatic VAT Rate Selection

Factumo suggests correct VAT treatment based on client type:

• Spanish client → Default Spanish VAT (21%)
• EU B2B client → Reverse charge (0%)
• International client → Export exemption (0%)

You can override if needed, but smart defaults prevent errors.

Payment Terms from Client Record

If client has custom payment terms:

• Automatically applied to new invoices
• Override standard company settings
• Maintains consistency for that client

Example: VIP client with Net 45 terms gets 45-day due dates automatically.

Privacy and Data Protection (GDPR)

Client data is protected under GDPR and Spanish data protection law.

Data We Store

Personal data:

• Names and contact information
• Tax identification numbers
• Addresses
• Email addresses and phone numbers

Business data:

• Invoice history
• Payment records
• Internal notes

Client Rights

Clients can request:

• Access - Copy of their data
• Correction - Update incorrect information
• Erasure - Deletion (if legally permissible)
• Portability - Export in machine-readable format

Note: Cannot delete data if required for tax compliance (7-year retention)

Your Responsibilities

• Collect only necessary information
• Keep data accurate and current
• Secure from unauthorized access
• Retain for legal minimum (7 years for invoices)
• Delete when no longer needed (if legally allowed)
• Respond to client data requests

Factumo handles security, encryption, and secure storage automatically.

Next Steps

Now that you understand client management:

• Create your first invoice - Use client data for invoicing
• Spanish requirements - Understand tax ID requirements
• Company setup - Configure your own business information

Need help managing clients? Contact support at support@factumo.com