Invoicing is probably one of the most challenging bookkeeping tasks that bring stress to small business owners. Chasing after clients and making sure that all bills are paid require multi-tasking and bookkeeping skills. For these regular tasks to be easier, moving to online invoicing is a great decision for most businesses.
Online invoicing is a far more efficient process as compared to any other form of offline invoicing. In a traditional business model, every paper procedure is full of administrative steps and quirks. Also, it is time-consuming which makes online invoicing the best solution to be considered.
Here are top ten (10) advantages of using an online invoicing software for businesses:
1. Faster Payments
Whenever an invoice is received by hand, the payment procedure usually takes time where it goes through several processes before arranging for the payments. Online invoicing software is developed to help you speed up your payment process by giving your clients multiple payments options (both online and offline).
Online invoicing is all about sending out invoices and payment reminders before the due date elapses. Hence, it is important to note that the faster you send out your invoices, the faster you’ll get paid. And with online invoicing software, creating and sending out your invoices is very easy and simple.
2. Saves Time And Cost
Time is precious, everybody knows that. Having an online invoicing software can save you plenty of it. Not only don’t you have to spend hours doing your invoices manually but you’ll also get paid faster. With an online invoicing tool you can be sure your invoice arrives on time and you’ll be able to easily track it.
An online invoicing software completely reduces and eliminates the additional cost associated with papers, envelopes, and postage of traditional invoices. With online invoicing, you don’t need papers, envelopes, and stamps anymore. Also, you don’t need a storage (everything is stored in the cloud).
3. Reduces Paperwork
Paperwork is a hassle. When it comes to small business accounting, usually a picture of a person buried under the piles of folders and papers pops into our heads. With online invoicing software, you don’t need to struggle with paperwork because you can easily manage that with online invoicing software.
An online invoicing software ensures correct numbering of invoices and the correct details inside the invoice. With a good service, as a merchant, you can filter your invoices by days, payment status or client, as well as download or print them so you can send them to your clients or accountant.
4. Better Organisation
There are times when you might forget whether or not a client paid or even saw an invoice you sent out, and while it isn’t usually a big deal to shoot them a quick email and ask, this can debase their regard for your professionalism. Choosing an online invoicing software could facilitate you retain reminders and generate invoices automatically whenever it is assigned to do so.
Using an online invoicing software is probably the most effective way to keep track of which invoices were sent, paid, or outstanding without bugging your clients. Our well designed and simple to use online invoicing software helps you automate the process without requiring your assistance, giving you the option to send reminders in the event that an invoice hasn’t been paid yet.
5. Very Easy Accessibility
When your files are stored on your computer, access to invoices become limited unless you are in front of your computer. With online invoices, you can access information anywhere and from any device. You will only need to log into your account to find out which clients you have to start billing. You will have the ability to create and send invoices at your fingertips.
Online invoicing is on the cloud which gives you the ability to manage client information and billing from one application. You can use it on your desktop, tablet, or smartphone. This means if you can’t make it into the office, you’re at home or travelling you can send and manage your invoices 24/7.
6. Provides Enhanced Security
When your computer crashes, you will also be saying goodbye to the most important files because you failed to create a back-up. Online invoices give you peace of mind because the software is extremely secure and backed up in the cloud. It safeguards files against interference and loss.
By utilizing an online invoicing software, both you and your clients can be at peace with regard to your security, ensuring that there will never be any potential data loss or leakage that might put your business or customers personal details at a risk during the transaction process.
7. Brand Personality & Identity
Your brand’s identity demonstrates your personality, professionalism and expertise. A small business has to engage with clients on a regular basis. When you strengthen your identity you increase the chances of getting paid on time. It’s been found that including your logo increases payments by 3X.
An online invoicing software helps reinforce brand identity by providing beautiful invoice templates for online invoicing. The business can add its logo, complete company details, and other customised messages to improve brand presence and brand engagement with existing customers.
8. Eliminates Errors & Disputes
Errors and disputes are inevitable when processing invoices. Online invoicing reduces errors and disputes due to human factors because when creating or issuing out invoices to customers. With online invoicing software, all necessary calculations including tax deductions are handled by the computer software which reduces the risk of wrong calculations by humans.
Errors delay the payment process. They can also damage the relationship that you have with a client. Invoicing errors and disputes can end up costing you thousands of dollars if not handled properly. In the event you make a mistake, errors can be corrected in minutes.
9. Increased Business Productivity
Probably the greatest advantage that online invoicing has is automation. Automating your invoicing process helps increase the productivity and efficiency of your business. This means that you can set up recurring payments for long-term clients. You can establish a subscription-based business model.
The automation system sends follow-ups and payment reminders for upcoming and past-due invoices. Automating these tasks saves you a ton of time and money and you can focus on growing your business. No more paying someone to do these administrative tasks for you. It also eliminates the frustration of chasing down these payments.
10. Financial Management & Auditing
An online invoicing software provides you with the overview of your financial activities and receivables at a glance via the dashboard. This dashboard creates a simple and time-saving process when analyzing financial reports.
An online invoicing solution allows you to save everything. Your invoices, estimates and other receivables online in one dashboard. During tax season you, or your accountant, can easily determine any eligible tax deductions by referencing your transaction history.
Whether you’re a small business owner, startup founder, freelancer or large corporation, today’s marketplace increasingly competitive. Businesses of all sizes need to look for ways to save time and money.
The benefits of using online invoicing software really outweigh the cost of deploying one. Choosing the right invoicing solution with the appropriate features should be greatly considered when switching your invoicing process.