Invoicing is often a tedious job. It is an endless cycle of computing sales, calculating discounts, tallying payments, and sending bills. While it may be laborious and repetitive, invoicing is still an essential aspect of your business.
But despite its importance, 89% of SMEs are still using traditional paper-based invoices for their operations.
Using such old-school methods may cause inefficiencies in your invoicing process. This includes delayed payments and inaccurate calculations, leading to strained client-relationships and profit loss. So level up your operations and explore the different types of billing process strategies that you can use for your business.
With that, here is how you can optimize your invoice process.
Living in the digital age means technologies are more accessible than ever. As a result, small businesses can embrace digital transformation just as well as any large enterprises in the market. So rather than sticking to a paper-based invoicing system, it’s high time that you ditch the papers and go completely digital.
There are many benefits to digitizing your invoicing process. For one, it makes managing and finding invoices easier and faster. Rather than sifting through towering cabinets full of folders, you would simply need a computer and you can instantly find the specific invoice you need in just a few clicks.
Digital invoices can also streamline communication between you and your clients. It allows you to send your billings to your clients instantaneously via email. If there are any errors in your invoices, your clients can easily send it back to you for corrections and have it back to them in just a few seconds.
Set payment terms clearly
Before entering into a new deal with a client, you must be upfront about your billing terms. This will determine how and when you will get paid. Establishing clear payment policies prevents any miscommunications or issues with the payment later on. It doesn’t just benefit you, but your clients will appreciate it as well.
Be clear about the time and manner you want to receive your payments. You must also consider your clients’ needs and demands. Discuss with them the payment methods, rates, and billing schedule. Likewise, don’t hesitate in telling your clients about the consequences of late payment. This way, you can avoid any conflicts later on.
Most importantly, you need to keep track of all your billing terms with your clients. One of the benefits of e-invoicing is that you can compile and centralize all your invoices with different clients for easy reference.
Allow online transactions
One of the effects of the COVID-19 pandemic is the increase in demands for cashless or contactless transactions. In fact, 72% of consumers prefer the convenience of digital transactions over face-to-face ones. So instead of just digitizing your invoicing process, consider going online as well.
This can provide you with the flexibility you need to adapt to the new normal. You can easily complete transactions and receive payments in a manner of seconds, thanks to the internet. Moreover, it will allow you to track and manage your invoicing process anytime and anywhere which is ideal for remote work.
Nowadays, there are various cloud-based e-invoicing apps that you can use for your business. Most of which allows you to manage your invoices online.
Automate where you can
Most of the inefficiencies in invoicing process stem from menial and repetitive tasks. This includes computing for the payments, tracking down recurring billings, and the actual creation of the invoices. But no matter how tedious these tasks may seem, the slightest mistake in the process can have a huge impact on your business.
Fortunately, most e-invoicing solution providers allow you to automate such tasks. For example, you can use it to automatically create invoices for each new purchase from your clients. Likewise, you can use it to set up a billing schedule and have you and your clients notified of the upcoming payment.
Automating your invoicing process doesn’t just make the work faster and easier. It can also help you save up on money by ensuring accuracy and timeliness in your payments. Likewise, it reduces labor costs.
Integrate with your ERP
Your invoicing process is just a cog in the machinery that is your business operations. To make sure that your business continues to operate smoothly, you must make sure that your invoicing process fits well with other aspects of your operations. This includes your supplier management systems, sales software, inventory management solutions, and top accounting software solutions.
Consider integrating your invoicing process with your ERP (enterprise resource planning). This way, you can have a single, centralized platform for all your operational intelligence.
Leveling up your invoicing process
More businesses are embracing digital transformation. So if you want to remain relevant and competitive in the market, consider investing in electronic invoice processing systems. Using such software can help you streamline and optimize your invoicing process. So go ahead and explore what options are available for your business.