There are several kinds of accounting software available to small businesses. Whether it is overall accounting and bookkeeping software, inventory software, payroll software, or other business-related software that helps with the financial aspects of operations, most small businesses employ the use of one or more of these. Now there is software specifically related to electronic invoicing.
Some accounting software includes an electronic invoicing in the overall business accounting software package, but many do not. This would be the reason you may want to consider getting electronic invoicing software. Here are eight reasons you should be electronically invoicing now!
Save time
Because of the automation, electronic invoicing saves a large amount of time previously spent manually invoicing. Many of the steps are eliminated once the process is automated because they are unnecessary in the electronic invoicing process.
Reducing Costs
When using the manual, paper invoicing, there are several costs involved. Printer ink, paper, envelopes, and postage are all costs involved in manual and paper invoicing. Besides the initial cost of the software, there is no cost involved in electronically invoicing your customers. It also saves money if you have to follow-up with reminders and late notices. Some companies give the customer the option to go paperless, but you will save money by electronically invoicing.
Reducing Errors
Because manual invoicing requires so many steps done manually, it increases the chances of errors in the process. There are many opportunities for errors, whether typos or incorrect data in the invoice or incorrectly addressing the envelope. Electronic invoicing still requires input. However, it will generally prompt error checks, and the rest of the process is automated and via email, so the chance of errors is minimized.
Customer Service
Because of the reduction in time, cost, and errors, there is a direct benefit to your customer. Also, because they will receive their invoices immediately, they can add the cost to their budget. Electronic invoicing is also more professional and can increase the overall positive impression of your business. The ease, accuracy, and speed will also increase customer confidence in your business’s abilities creating long-term customers.
Get Paid Quickly
Because the customer is invoiced immediately instead of the time it takes to mail an invoice, it is far more likely the invoice will be paid quickly. Most customers who fail to pay forget about the payment. With electronic invoicing, they will receive the initial invoice, but reminders are more easily sent because of the simplification of the process.
Reducing Paper Use
With awareness of the environment and recycling being the focus of many, reducing paper use will benefit the environment. The reduction of paper for the invoice and the envelope will positively impact and give your customers who are concerned with the environment another reason to choose your company.
Accurate Record-Keeping
Because the process is generated and recorded through the software, this will ensure accurate records. This accuracy is especially important for taxes and operations. It also allows an overview of outstanding invoices that may require more intense measures to recover. Overall you will have easy to understand records that will help keep accounting and bookkeeping accurate and efficient.
More Control
Manual invoicing also means manual record-keeping and other processes. Having the electronic invoicing process from beginning to recording in the software gives you more control over your invoices and the invoicing process. Most of the invoicing issues are that the manual process can allow the invoices to get away from you. This control and accuracy, ease of access to what has been received, and what is out will give you strong invoicing control.
Conclusion
There are no downsides to electronic invoicing, and no reason it should not be utilized in your business immediately. Electronic invoicing saves time, money, and errors and will give you and your accountant accuracy and more control.
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