When it comes to starting and running a lucrative small business, innovation and technology have to be considered a key business piece. Due to the nature of technology and the movement to online transactions, e-billing and invoicing have become more commonly used by small businesses. There are distinct advantages for you and your customers to use e-billing and invoicing. Here is everything you need to know about e-invoicing and billing.
Convenience
Convenience is always a driving force when it comes to business operations. You have to keep it heavily in mind when you are taking on the e-billing and invoicing system. Using e-billing and invoicing is an advantage for you as the business owner and for your customer. By offering your customers various payment types, you increase your customers’ chances of paying their bills in full but on time. Customers using the option of paying online can choose when and where they complete transactions, therefore, ensuring on time or early payment.
Control of Finances
Because online bill paying is instant, this gives the user control over their finances. Sending a check takes time to arrive, process, and debit from their bank accounts, leaving time to possibly utilize the funds causing the check not to clear due to insufficient funds. E-billing eliminates this because instant account debit applies whether the customer chooses debit, credit, or e-check.
Email Reminders
E-billing and invoicing include automation to remind customers of their upcoming due date. Not only does it send reminders, but it also offers an option to “Pay Now” when it sends the reminder before the due date. This option increases the probability of the customer paying early.
Automatic Payments
Speaking of automation. Most e-billing and invoicing systems have an option for automatic payments. The customer can opt into this automatic payment debit. In some cases, the company can offer discounts or fee waivers for those using the automated option. Automation increases paid receivables by a large percentage.
E-Billing and Invoicing Business Advantages
Instant and Secure Invoicing
Invoicing is made convenient and secure by emailing the invoice to the customer with the mouse’s click. The invoices will also trigger automation for email reminders. At the time of the original invoice, there will be a “Pay Now” option increasing the possibility that the customer will pay before or on the due date.
Less Time Invoicing and Bookkeeping
Electronic invoicing allows you to distribute multiple invoices in less time to create and send one paper invoice. You can use automation to link invoicing to your bookkeeping software, saving time spent on reconciling accounts receivable entries.
Cost reduction
Sending automated e-invoices saves money. There are savings on time, mailing products, and postage. The savings can be quite a lot for high volume businesses. Small businesses benefit from these cost savings the most since budgets are generally tight for small businesses.
Storage
Automated notices and electronic invoices can be saved on your business computer’s hard drive. You can also back up your files on outside drives. Paper records must be stored in filing cabinets taking up space and utilizing precious time to file them. Also, Invoices can be integrated into your accounting software, making it more accurate than paper document filing, which leaves the possibility of lost or misplaced invoices.
Conclusion
Because of security, accuracy, convenience, and quick payment, e-billing and invoicing are quickly becoming the norm for accounts receivable. Whether you are a customer or a business owner, the benefits of e-billing and invoicing are numerous, and the disadvantages are few. With more customers going online to find a payment solution that works for their needs, electronic invoicing and billing are an exceptional tool for your business that offers your customers a seamless and enjoyable billing process.
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