Online invoicing technology is rapidly changing the way businesses manage their invoices. More companies are taking advantage of this technology and using an automated invoice processing platform to simplify administration tasks. Proper cash flow management is key to the survival of any business and invoicing plays a big role in the accounting cycle.
For both startups and well-established small businesses, managing any invoicing including recurring invoices can be a challenging process. But automation invoicing software makes lightwork of this task!
By issuing invoices, you’re ensuring your products or services are being charged and paid for. While you may still be in the mode of using manual invoices, a smart move would be to choose an automated invoice processing software to do the job.
If you’re searching for the best invoice processing platform but not sure where to start, then read on. We’ll take you through what this software can do for you and your business and how it can save you precious time and money. We’ve also listed the key features you should look out for when picking an invoice processing platform for your company’s accounting needs.
What is an Automated Invoice Processing Platform?
An automated invoice processing platform uses automation software for invoice management. The platform is designed to simplify the processing of invoices, issuing to clients, and payments. The automaton of invoice processing allows for the following:
- Less time spent on writing up manual invoices
- Processing and issuing of invoices quickly
- Direct delivery to client’s mailbox (no time and money wasted on paper and postage))
- Accurate invoices
- Easy capturing of data for financial reporting and tax purposes
- Automatic generation of recurring invoices
- Less focus on administrative tasks and more attention on other aspects of the business
By automating manual processes, the platform transforms the way you manage the cash flow of your business. In an instance, you’ll be able to see what invoices are still outstanding for payment. Your accountant will also be able to produce accurate financial reports and make efficient tax returns with minimal fuss.
How Will Invoice Processing Software Work for Your Business?
You’re not alone when it comes to understanding the basic accounting and financial requirements of running your business. And, for many small business owners, the cost of hiring a full-time accountant can be expensive. If you’re one of these business owners, you may find yourself processing and issuing your own invoices. And, you’ll discover quickly enough how time-consuming this task can be.
Writing up invoices, sending them out, and keeping track of payments take up a lot of your time. Plus, you’ll always be faced with outstanding payments and chasing up on clients who owe you money. However, installing automated invoicing can be an inexpensive solution while saving you time and money with a more streamlined process.
Automated invoice management works simply and efficiently. It uses automated software to capture all invoice data. It automatically performs data entry, issues invoices, and sends reminders for payments when necessary. The platform is also able to manage the process of collecting payments and automatically generate recurring invoices with a few clicks of the button.
Your role is basically to create the invoice using templates provided by the platform and configuring the invoice processing software so it knows when it needs to do the abovementioned tasks.
Automation software can also include offering your client a range of payment methods. This means you can include a payment portal on your invoice through which your client can pay. When a payment is made, this information is captured and reconciled into your accounting system.
How Convenient is Automated Invoice Processing vs. Manual Invoice Processing?
Let’s first talk about the manual invoicing processing cycle and what is required. Depending on how many customers you have and products or services sold, you’ll need time to write up manual invoices. This can take up a number of hours if not days especially if you’re only issuing invoices at the end of the month.
Processing and sending manual invoices can also be costly when you factor in paper and postage expenses. Lastly, payments are often delayed making it harder for you to manage a healthy cash flow.
If you’re the one processing manual invoices, your focus on other day-to-day operations of your business may drop. Paying someone else to do the job can become expensive when you’re starting up as a new small business owner.
Managing a manual invoice processing system requires you to manually enter data into your accounting books. This is a lengthy process and can easily lead to many mistakes being made. And, if payments are not made, you need to send out reminders.
With the implementation of digital invoice systems, automated invoicing is an efficient and convenient method of managing your invoices. In the long run, it also becomes an inexpensive alternative to manual invoicing.
So, how convenient is automated invoice processing?
Create Invoices in Seconds
Instead of spending hours manually writing out invoices, you can create your own professional-looking invoice in seconds. By using Bildu online invoice maker, you can select from a range of templates and customize your invoice to match your brand.
Send Directly to Mailboxes
An automated invoice processing platform lets you send online invoices directly to your client’s mailbox. This saves you time and money on paper and postage costs. What’s more, you’ll get notification when your client opens the invoice.
Faster Online Payments
Most advanced invoice processing software includes a smart payment feature. This means you can insert a pay button in your online invoice. This allows the client to make a direct payment into your bank account by clicking on the button. You no longer need to stress about delayed payments because of manual invoices.
Better Capturing of Payment Information
When a payment is received, this information is captured and reconciled. Automated invoicing software manages the whole process of reconciling all your payments and when payment is delayed, reminders are sent out. This conveniently keeps all your accounts up to date at all times.
5. Better Customer Satisfaction
What is a business without satisfied customers? Your products and services are key to customer satisfaction but so is their online experience when dealing with your business. An efficient and convenient online invoicing system makes your client’s life easier too. With accurate invoices and simpler online payment methods, your customer is bound to be thrilled when dealing with your business.
Recurring Invoices and Automated Invoice Processing Software
Regular payments keep your cash flow healthy. And, many businesses are realizing the power of sending recurring invoices to keep payments coming in. If your business requires issuing recurring invoices on a monthly basis it means you’re relying on regular payments.
However, one of the most time-consuming administrative tasks of processing invoices is generating recurring invoices. It can put a strain on your workforce having to generate these invoices and if you’re doing the job yourself, takes your attention off other essential aspects of your business.
Sending recurring invoices has many benefits including the following:
- Provides a steady stream of cash: For customers who need to pay you every month, receiving a regular invoice at the same time every month reminds them of their financial obligation to you.
- Better payment: Once your customer gets used to receiving your invoice every month, they’re more inclined to factor your account into their payment routine.
- Less chasing of payments: With customers paying you regularly every month, you’re less likely left with handling overdue payments and sending late payment fees.
- Better cash projection: When you know how much is due to your business every month, you’ll be able to project an estimated cash flow for your company.
- Saves time and money: Instead of spending hours writing up monthly invoices, you can simply automate recurring invoices in less time. You’ll also save on paper and postage costs.
Invoice processing software is ideal for businesses who need to generate recurring invoices. Once you’ve created a standard invoice using a template, you can schedule when it needs to be sent out using automation software.
A recurring billing system is often used for the following reasons:
- Charging of monthly license fees
- Management of membership sites
- Monthly subscription fees
- Maintenance plans for products
- Regular service payments
If your business needs to send out recurring invoices for any of the abovementioned reasons, then installing an online invoice generator is your solution.
What to Look Out for When Choosing Invoice Processing Software
By now you should be convinced that moving your invoicing from manual to automation software is a smart move for your business. But, your next question would be how to choose the best automated invoice processing platform for your company’s accounting and financial needs.
We suggest you look out for the following key features when picking the best invoice processing software for your business.
The easier it is to process and issue invoices, the better the platform. Look out for software that allows you to create professional invoices with prepared templates. This saves you from having to draw up tables or other fussy details normally involved when you create your own invoice for example in Word or Excel.
Make sure the platform allows you to email online invoices directly to your customers’ mailboxes and lets you track all communication efficiently.
Management and Monitoring of Income and Expenses
Keeping an eye on your company’s expenditures and income is essential for managing cash flow. Ensure that the automation invoice software you pick allows for online expense and income management. By keeping all your receipts in one place and in digital format, you’ll have a more organized approach to managing your expenses.
With online capturing of all payments, you’re also kept in the loop with regards to who has paid and who hasn’t paid. Online reporting and charts which reflects both your expenses and income gives you an instant overview of how your business is doing.
Not all invoicing processing platforms offer the option of including a “pay button” or other payment portals. However, this feature is key to faster payments from your customers. You also want to know that the platform will issue payment reminders, send late payment fees, and notify you when a payment has been made.
Another key feature to help with better payment from your customers is receiving a notification whenever an invoice has been opened. This means the invoice has landed in the client’s mailbox and has been seen.
Automatic Generation of Recurring Invoices
Invoice processing software that can automatically generate recurring invoices is a key feature to look out for if your business relies on regular payments from clients. Managing a recurring billing system can be challenging so make sure you simplify the process with an online invoice generator.
Monthly invoices can be sent out on schedule to prompt payment from your clients. Make sure the platform allows you to also change the invoice amount whenever necessary and can be linked to a payment method.
Being able to add other team members to the invoice processing platform means you can rely on other employees to issue invoices. This cuts down on the amount of time you, as the business owner, need to spend on tedious and time-consuming administration tasks.
Another benefit of being able to add users is inviting your accountant to the invoicing platform. Instead of wasting time in sending invoices and payments through to your accountant, they can see everything, in real-time, online. By sharing invoices online with your accountant, you’re also cutting down on paperwork and minimizing on data errors.
Currencies and Language
If your business deals with other countries and nationalities, you want to be able to invoice your customer using their currency and language. This means you can communicate better with your customer when issuing invoices in their language.
Using the customer’s preferred currency also makes it easier for them to make a payment when they know how much they’re paying you.
Cloud-Based Software and Apps
Automated invoice processing platforms that make use of cloud-based software are often safer to use. You can have peace of mind your data is secure online and reliable at all times. Plus, all your invoices will be organized perfectly as they should be when in the cloud.
Downloadable apps let you do business wherever you are, on the go. You no longer need to delay issuing an invoice when you have an invoicing app on your iOS or Android mobile or tablet. This feature is essential if you’re never in the office!
To manage all invoicing needs, installing an automated invoicing processing platform is a smart move for startups and small businesses. And, when your business relies on regular monthly payments, being able to generate recurring invoices automatically simply makes running your business a breeze.
Knowing which key features to look out for when choosing invoice processing software makes it easier for you to make the right decision for your business. With Billdu, you’ll be joining many other subscribers who use our invoice processing platform to manage their cash flow efficiently and conveniently.