What are the advantages of using online invoicing?
Invoicing is an essential part of every business. But the traditional method of creating, printing and mailing paper invoices can be costly and time-consuming. Online invoicing is a much more efficient way to request and track payments from clients, as well as being more environmentally-friendly.
Businesses can use online invoicing software to streamline the process for both their staff and clients. Here are some of the benefits of switching to ‘e-voicing’.
Invoice immediately and receive payments faster
Delayed invoices can result in late fees. Online invoicing software can help companies avoid this by scheduling regular invoices at set dates in the billing cycle. Users can create an invoice for one-off or upfront payments, or set up automatic billing for regular clients.
This reduces overhead costs and allows business owners to request an invoice payment at any time or location. Sending same-day invoices, using software to track when customers open their bills and offering online payment services are all effective ways to encourage faster payments.
Keep records easily
Automatic tracking of invoices makes it easier to keep up to date with payment statuses and audit information. Instead of regularly checking business bank accounts to confirm payment, invoicing software can track the status of invoices and notify you if they are past due.
Gaining insights into clients’ payment behaviours can also allow businesses to set up reminders or set personalised payment terms. This ensures no payments are missed, which can affect the financial health of small businesses. Tracking payment statuses and retaining copies of all invoices can also make it easier to keep an in-depth audit trail.
Reduces time and paperwork
Automating the invoicing process can help a business save on overheads for bookkeeping and accounting. Using electronic invoicing on a regular basis can cut the need for complicated cash flow and reconciliation processes.
It also saves on stationery, printing, postage, and storage costs. A business can save on their outgoings and financial reports while making strides towards going paperless because everything is electronically archived and indexed. This will ultimately lead to increased business productivity.
This software can clean up your expenses, as invoice templates are easily accessed and old invoices are viewable at a click. There is also less risk of human error, as the software can fill out the invoice numbering correctly on your behalf.
Prompts clients that payment is due
There can sometimes be delays in payment even when invoices are on time. Companies can send reminders and notify clients of any penalty terms by using invoicing software. This can sometimes be enough to prompt clients to make a payment.
Different clients may also have different preferences when it comes to payment options. Companies can tailor payment details to suit each client with electronic invoices. For example, clients might prefer credit card payments, wire transfers, or e-wallet services like PayPal. Some accounting software even includes cloud-based payment services that allow clients to quickly pay with the push of a button.
Provides an opportunity for company branding
All business communications should be professional and on-brand. Invoices are no exception. Software can allow businesses to tailor their invoice templates to each of their clients while ensuring they are all consistent with the company’s branding.
Including logos, website addresses and customised designs can promote a positive message about the company’s reputation. Businesses should see every invoice as a branding opportunity and never neglect their clients with lazy invoice generation.
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