There are a large number of small businesses and freelancers that don’t believe there is a need for automating the invoicing process. Therefore, they don’t invest in tools such as online invoicing. But, this is no longer a good decision, especially if you want your business to grow and expand and you want to manage it easily. Online invoicing can aid in streamlining the business process by a huge extent and it is important that businesses realize its necessity. Here are some facts about online invoicing that show a business why using this software is essential: Fact 1: You can immediately send your invoices out The quicker you send out invoices to your customers, the sooner you will get paid. Online invoicing is one way of ensuring that because it doesn’t just mean same day delivery; it basically offers you same minute delivery. Fact 2: Scheduling invoicing is possible Most software solutions offer you the feature of recurring invoices and this enables a business to send out invoices to customers at specific dates and times. It saves you the hassle of being present every time an invoice is sent out. You can focus on other tasks once you have scheduled the invoices that need to be sent out. Fact 3: Better invoice tracking Opting for online invoicing can make it easier for businesses to track their due invoices, those that are overdue and also automatically generate receipts for payments that have been received. Your records are updated after every transaction so you can know the exact condition of your business at any time. Fact 4: Invoice anytime and anywhere The beauty of online invoicing is that you can access your application, regardless of the time and location. You will find printable invoices here no matter where you are and you don’t have to wait until you reach the office to send out an invoice. Fact 5: Get a better insight with financial reports A reliable online invoicing application provides businesses with features they can use for generating several insightful and useful financial reports. These can be used for making decisions in the future that can help in improving the bottom line of the business. Fact 6: Get paid online There is no longer any need for you to wait for checks to arrive so you can go cash them. When you are using an online invoicing software, it will give you the option of integrating online payment gateway, which means that you will be able to accept payments through bank transfer or credit or debit card with just a single click. Fact 7: Branded invoicing You can make a great difference in the impression you leave on your customers by sending out a personalized and professional invoice bearing your company’s logo. When you go with a professional approach, it can also lead to faster payment and it is also useful in creating brand awareness. These are some excellent facts that show why using an online invoicing software is a good idea for your business.
Invoicing plays a vital role in business accounting, and no serious business owner should dare ignore it. Whether your business is small or large, you certainly would not like to see any of your cash flow outstanding due to invoicing issues. If you are experienced this billing problem and are looking for ways to solve it, you are not alone. Whenever business owners talk about what they require for an effective billing process, they are basically looking for a business billing procedure that is easy to use and encourages their customers to pay on time always. Most of your clients will not make payment at the right time unless you ask for it. However, no matter what your current invoice process is, here are a few things that you can do to help enhance not only time payments but also customer relations. Set Up Your Billing Terms By establishing the billing terms for your business, you increase your chances of getting paid on time and maintaining healthy customer relationships. Among other things, you should make sure you set the billing deadline and the consequences your customers who do not meet this deadline face. Outline this expectation with any customer before you enter into a contract. Since your business needs cash flow, the only way to achieve that is to get paid promptly and setting billing terms will help you to achieve exactly that. Take Your Time and Bill Appropriately The key to long-term success in this game is taking your time to get the payment process on the right track right at the beginning. While maintaining clarity and readability, you should incorporate all essential details on your business billing system to portray that your company embraces professionalism. You need to ensure your clients know what the document is at one glance by labeling it as an “invoice.” Also, it pays to list out all the products or services you are billing along with unit prices, applicable discounts, taxes, and the total amount you are expecting to collect. When mailing your business bills, you may consider including a return envelope for your clients to return payment. This step makes the process of sending you money easier for your customers. But you can still make it much easier by pre-printing your address on your envelopes. After some time, you may find your customers not using the return envelope. Some people prefer to pay online or in person. And since that return envelope will increase the weight of your mailing, it may require you to dig deeper into your pocket and pay more money. So, it is prudent to provide cheaper payment options to encourage your customers to use them, whenever they find it convenient. Be Human Always Being human can involve doing small things such as making polite phone calls to introduce you as the one in charge of payments. This seems like a small gesture, but will often achieve much more than emails sent to individuals who do not know you. The kind gestures might also help smooth out any misunderstandings that arise in the future and get you more work. Choose the Right Currency Most small-business owners find deciding which currency to use to be a complicated aspect of billing foreign companies. A good time to settle this issue is during contract negotiations with the customer. After knowing the currency to use, the next most important things that you need to have in mind are exchange rate fluctuations and bank charges. Bank charges and exchange rates can make transaction very expensive. You may decide to share these costs out of good will with your customer to encourage them to trade with you and pay promptly. But before doing that, it is sensible to take financial advice. Get the right invoice software to make it easier for you to account payments in multiple currencies. Your software will allow the application of zero-rated and low-rated sales taxes for your foreign clients. But it will still account for all sales in your records. State Clearly Your Accepted Payment Methods Some payment methods mean more spending on the part of your business. For best returns, you need to balance the costs against the ease of payment for your clients and make an informed decision. You can also differentiate yourself by accepting new crypto-currencies and many other alternative methods of Internet money transfer. However, at the moment you should be more careful if you want to use these new currencies since their exchange rate to “authentic” currencies can be extremely unpredictable. File Documents for Future Reference You need to have a system in place that will help you when going after late payments. An accurate document trail can of great help to you. So, you need to keep track of requested changes in writing and record communications and telephone conversations about invoices. You will do well if you either consider using invoice software that track payments or asking your financial advisor for suggestions on ways to do this on your own. Every time you send a bill put the details into this system and record the exact dates when you receive payment for the best experience. Make Collection Calls Nothing is more effective at helping business owners to clear up misunderstandings than making telephones calls. Occasionally, your customers may fail to pay you promptly due to misinterpretation of some of your communications, and these calls can bring back the desired harmony. For these calls to have the greatest impact, you have to adopt a matter-of-fact manner and presume good intentions on the part of your clients. During these conversations, you need to settle on a specific amount due and the expected date of receipt. If you are concerned about damaging client relations, have some else make the collection calls on your behalf. Conclusion All that you need to get paid faster is a combination of the right attitude, invoice software that will help you to bill your customers appropriately, and the relevant billing processes. Once you have accurately set up your payment process, it should be able to run smoothly and without much difficulty. As a business owner, you may be short on time given the many roles that you play to ensure your business is profitable. But taking the effort to ensure your invoicing process is efficient and easy is a decision that will pay off handsomely at the end of the day.