You won’t understand the benefits of billing software until you start collecting payments for your business. Of the tons of challenges that come with running any profitable business, three tasks emerge as the most overwhelming: invoicing, receiving payment on time, and keeping track of the payment status of all of your customers.
Imagine the detriments you will face when you take too long to compose and send your invoice. Think of all the money you’re going to lose when your clients decide not to pay you because you took too long to send them an invoice.
Meanwhile, the people in-charge of invoice creation and management also need to make sure the invoice isn’t forgotten. With delayed invoicing, the company will have to compensate by coming up with the necessary funds to cover operational expenses until the payment is received.
One delayed invoice won’t hurt. But if you’re doing it regularly, it becomes a problem you’ll need to solve. Bad invoicing can get complicated and costly. That’s why you should keep reading to learn how modern invoicing works and how billing systems have made it ten times easier.
The Impact of Using Billing Software
Nowadays, most companies rely on billing and invoicing software to help them with their business invoice tasks. This innovative approach has made generating and tracking invoices quicker and easier. It has allowed companies to get paid on time compared to the traditional way.
Credit sales are a common practice. With it having a significant impact on finances, it’s quite surprising to see that many companies continue to rely on manual processes to manage their business invoice.
The Benefits of Using a Billing Software
To give you an idea of what billing and invoicing software can do for you and your business, here are seven proven benefits of using these effective applications:
Faster Invoice Creation
Drafting invoices manually takes a lot of time for you. Fortunately, invoicing software can make it faster and less taxing by allowing users to either download a template or create one straight from their platform. With a billing system, invoice creation is only a few clicks away.
Create and Save Custom Templates
There are many billing and invoicing platforms available online. Each of them has different services to offer in terms of the business invoice. ReliaBills, for instance, provides a comprehensive way for you to create and send invoices. All you need is to create a free account, and you’re ready to create your invoice. Just choose a premade template and edit it all on the platform. No downloading needed.
For other billing platforms, you’ll need to download a free invoice template. Choose a template of your choice and start editing it on word processors like Microsoft Word or Google Docs. You can also edit it on spreadsheets like Microsoft Excel or Google Sheets.
Other platforms also allow you to save custom templates so that you can use them for next month’s invoices. For downloadable, simply save the custom template on your computer device so that you can use it for later invoices.
Automate Invoicing and Communications
Your company is responsible for making sure the money owed to you by your clients doesn’t get overlooked. However, it’s not that easy to keep track of when you have so many invoices on your plate. Fortunately, billing software can solve that issue. By using a billing platform, you can automate everything. From payment reminders, statements, and late notices, you can set everything up to make sure you won’t miss anything.
That way, you won’t forget to remind customers about their payment deadlines or overdue accounts. And while emails are an effective way of informing your clients about the money they owe you, sometimes, it isn’t enough. You may need to reach out to your clients via phone call. Some systems can go a step further by updating your calendar and remind you about follow-up calls base on the rules you set-up for your invoicing.
Ensure Up-to-date Information
Is the data you’re working off up-to-date? Many businesses that are not using billing software tend to rely on outdated reports and spreadsheets that require manual updates. With billing software, you won’t have to do frustrating, manual updates that have a higher chance of error.
Billing software can be linked directly to your accounting system, ensuring that all of your records are always up-to-date. That way, you won’t have to contact your customers about an invoice they haven’t settled. Simultaneously, you won’t have to go through piles of old information or spend time updating them manually.
All-in-One Invoicing System
With billing software, everything is in one place. You can avoid wasting time going through multiple applications and making this more complex than it should be. With a billing platform, you’ll have everything you need right in front of you. That way, you will know what is due, when it’s due, what is in progress, what is already done, and so much more.
Online Payment Options
When payment is made easier and more convenient, more customers will come back for your services. Easier payments also mean it gets done faster. Billing software gives you the option to send secure links to your invoices via email. From there, your customers will be taken into a payment portal where they can pay their invoices in a safe and secure way. You can even offer other payment options like bank transfer, credit, debit, or even through third-party payment platforms like PayPal or Wise(TransferWise).
If you’re using manual processes like spreadsheets as the foundation of your invoice business strategy, gathering and analyzing data can get extremely confusing and time-consuming. By choosing a billing platform, you can access accounts receivable options that give you instant access to all the relevant data. At the same time, it also helps you monitor and measure the performance of your accounts receivable.
Essentially, most billing and invoice software will allow business owners to summarize important performance indicators such as the following:
- Percentage of overdue/delayed receivables
- Average time to receive payments per invoice
- Average days receivable
- Accounts receivables turnover ratio
- Current accounts receivable aging by invoice date
- Average days pass before customers pays
- Current days sales outstanding
- A view of the 6-month DSO trend
- Top delinquent accounts
- Cash summary
- Summary of collection activities
Of course, not all of these metrics are found on all billing software. Some will lack essential features, so make sure you choose the one that provides all the data you need for your business.
By using accounting software, you can create better invoices and a more professional online business profile. Improve customer experience and overall business operations by introducing a better and more comprehensive invoice system using professional billing platforms. Your customers will certainly appreciate you more once you make their payments easier and more convenient.
ReliaBills can help create professional-looking invoices, as well as manage your invoice system as a whole.