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E-Billing and Invoicing - Complete Controller

When it comes to starting and running a successful small business, technology has to be considered as a crucial aspect of the business. Due to the nature of technology and the movement to online transactions, e-billing and invoicing have become more widely used by small businesses. There are distinct advantages for you and your customers, and they are as follows.

E-Billing and Invoicing Customer Advantages Check out America's Best Bookkeepers

Convenience

Convenience is not only an advantage for your customer but to you as the business owner. By offering your customers various payment types, you are increasing the chances that your customers will pay their bill 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. Check out America's Best Bookkeepers

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, which can save time spent 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 this cost savings the most since budgets are generally tight for small businesses. Check out America's Best Bookkeepers

Storage

Automatic reminders and electronic invoices can be saved on your business computer’s hard drive. You can also back up your files on external drives. Paper documents 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 and more customers going online to find a payment solution that works for their needs, electronic invoicing and billing is an excellent tool for your business that provides your customers a seamless and enjoyable billing process.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks™️ file, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers

Open book with figures and paper with words  accounts receivable.
Outstanding accounts receivables are among the most significant issues that businesses face. Reducing the time for your account receivables may seem like a distant dream, especially for businesses whose mode of operation is usually credit. While some clients may prefer to pay in advance, usually credit system are commonly used for business deals and often reach a conclusion smoothly, apart from certain instances. Businesses are often seeking answers to reduce their receivables for over 30 days and how to prevent that from happening in the first place. Some of the tips, below, are surely going to help you in this regard.

Ways to Reduce Outstanding Accounts Receivables

State Payment Terms Clearly on Invoices

Businesses often have extended lists of terms and conditions, which clients don’t really read anyway. While stating your terms and conditions is a good practice, the terms of payment should be clearly mentioned in bold on the front page. If you want payment in a week, state clearly that you want it then and failing to do so will result in penalties. By writing this, you put your payment policy right in the face of your client, which often pays off and usually results in a considerable decrease in outstanding accounts receivables.

Device a Standardized Follow-Up System

A lot of debt collection is based on past precedence. If the company is known for its laid-back attitude for payment collections, chances are that your clients may delay their payments. In addition, some businesses have no system in place for debt collection and are usually dependent on their client’s will. One of the ways to handle this issue is by emailing the invoice 7 days prior to the payment and again 2, 3 days before the payment. It sends a strong signal to the client that you are serious about outstanding accounts receivables and would like them to comply with the company policies.

In case someone does not pay up on the specific date, an arrears letter must be ready to be sent on the next day. Even after the letter is posted, you must have a follow-up plan on how to deal with such clients. Everyone in the company must be on the same page and should have a clear picture about the potential course of action.

Be Proactive

Having a system in place is just not enough when it comes to debt collections. Being proactive means that you have to ensure that the system is being followed properly. Even before that, it is critical to know that everyone understands the SOP’s and are collectively working towards clearing outstanding accounts receivables. Although you have a system in place, there should be a dedicated resource assigned to making phone calls to the creditors. Nothing beats a good phone call when it comes to collecting payments.

Automate the Process

Having an automated software to manage your bookkeeping needs does wonders for your business. There are many accounting software options that are great for managing everything from your sales invoices to maintaining income statements and balance sheets. Having all of the information about your customers in a software allows it to send and receive critical information at designated times along with improving the efficiency of outstanding accounts receivables which creates a professional image of your company. Automated emails are of great use in this regard. This software allows you to keep and edit notes on specific clients, which is accessible to every member of the collection team as well as other concerned departments. Therefore, everyone will evidently know the current stance of the client regarding their payment.

Use Professional Help to Collect Outstanding Accounts Receivables

If you have implemented all of the above-mentioned steps and still failed to collect payments, you may need an expert opinion. Debt collection experts will devise a plan based on your business model as they have the skills and proficiency in carrying out such tasks for many businesses. They can help you identify your possible point of failures and also highlight the key pressure points of clients who are the cause for concern. Reputable professional help is a viable option that may be considered, if needed.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

Man holds invoice of electric power usage
Whether you are working in the creative industry or you have your own gadget store, it’s not easy to avoid the “elephant in the room”. There are multiple mistakes even experienced entrepreneurs make while setting up their business practices and culture, which makes it harder for them to recover payments from their clients. For an entrepreneur, the payment made from their client’s end is their lifeblood. Negligence of clients can even halt the business itself, especially at an initial level, as the company’s future bills are funded by client payments. The internet has grown so far that people are using multiple methods to approach their clients globally. However, not keeping a secure payment method has caught our attention regarding the missed or late payments from the clients’ end. Although, the clients, especially those who are using the internet as their only source of communication, are skeptical regarding paying in advance. Therefore, expecting them to pay a complete upfront payment is not possible at an initial level when you have just started your business. At times, clients make unnecessary delays or deductions after the delivery of their desired product or services which is accounted for as a bad debt account for entrepreneurs.

If you are struggling with this issue, here are a few practical bits of advice for you that can help in recovering your stuck money and even help you in avoiding such scenarios.

Tips to Secure your Payments

Choose the Right Client

Your ideal situation is when you only attract paying clients. Evaluate the clients as they are approaching you for your work, as this will make it easier for you to shortlist the clients you actually want to work for and benefit from. Here are few tips from which you can easily choose the right client base.

1. Raise your Worth

Selling a product or offering a service? Keep your rates at or above the market price. Selling services at a price that is too low will make you more approachable to frauds or less ethical clients. However, the people who are satisfied with your quality of work will be willing to pay you the average market price or even a premium price for your quality.

2. Design a Proper Payment Policy in Advance

Once you have a proper payment policy for your product or service, the client will get the idea of your fixed payment policy. This will depict your professional attitude towards your work. Your professional policy should cover all of the aspects of your best practices as it will act as a preventive for fraudulent cases. The policy should include:

  • Your invoice duration such as weekly/bi-monthly/monthly or project wise
  • Your terms of payments
  • Penalties in case of any late payment
  • Your detailed rate structure that includes basic per hour rate and monthly rate of that project
  • Payment methods that are acceptable to you
  • How you will handle late payments
  • How your company will recover missed payments from the client

 

Identify your Clients while they Talk

Don’t waste time after you have invested your work and money on providing the customer’s desired product. Dealing with late or missed payments later is a frustrating experience. Therefore, one should identify the seriousness of their clients before they start to work on their project.

  • Avoid bargaining
  • Understand the client’s psychology and their potential to understand you
  • Get a contract signed, even for smaller payments/projects
  • Look for clients through references as this will be a more solid and secure source

Always Maintain your Records

Bookkeeping is a very beneficial and necessary part of an entrepreneurial business. The most successful strategies of keeping your payments secure is recording all of your transactions, bad debts, and accounts receivables in detailed records that can help you later in analyzing how much work you are providing and how much you are owed.  

Be Serious about Getting Paid

Sitting and waiting for payments will not solve your problem. You need to personally be proactive in seeking all of your expected payments.

  • Contact the clients as soon as the deadline has passed
  • Start charging interest on late payments
  • Keep nudging the client, even after a month or so
  • Send a demand letter to the client’s address
  • If you are still unsuccessful, contact a collections agency 


Be Ready to do Something

Starting up your own business is not a cup of tea and managing it is a much tougher job. Dealing with your employees as well as your customers is a challenging task in itself. If a client is missing their payments or canceling the payment altogether, you should not wait for the end result. Rather, you should adopt a proactive approach to do something regarding the issue.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.