Have you considered online invoicing for your business?
It’s one of the newest ways companies are streamlining their accounting processes and improving productivity.
Even if your business doesn’t yet have its own separate website for setting up payments, you can use software to submit online invoices.
Is it worth trying? Consider the benefits before making a decision.
1. Convenience for All Parties
Mailing off paper invoices is time-consuming.
You print the invoices, put them in envelopes, address them to the right person, and send them via snail mail. Even if you have this process automated, it can still become a hassle.
At the recipients’ places of business, someone then has to receive them, file them away and then start the approval process. Online invoicing eliminates most of this hassle.
2. Faster Payment Times
As a manager at an SME, how quickly customers pay their invoices has a significant effect on your ability to meet financial obligations or have cash on hand to expand.
Mailing can be fast sometimes, but it lacks the immediacy of online invoicing.
Imagine the time difference between submitting invoices electronically versus mailing off paper invoices.
The faster your customers can review and process the invoice, the sooner you get paid.
3. Easier To Formalize Unique Offers
Say, for instance, that a customer usually pays its invoices on time.
However, after being forced to shutter its doors on and off for several months, it makes far less money than it usually does.
This causes it to fall behind on payments to you. You might want to keep this customer because of its otherwise spotless payment record.
So, you offer an invoice that incorporates a separate 12-month installment plan. The customer can even use an internal link in the invoice to automate payments.
4. Easier To Track Online Invoicing
Whether you choose to use an email campaign to send out invoices or an app, it’s so much easier to track who reviewed them or paid them than it is with paper invoices.
This can simplify the work of the accounts receivable and the accounts payable team. After all, you also have your invoices to pay, and you need to keep track of income to ensure you can meet those liabilities without taking on debt.
Tracking options vary across accounting software and email campaign platforms.
5. Green Initiative via Online Invoicing
Is your company focused on sustainability and eco-friendly solutions?
If so, the less paper you use to complete transactions, the more you help the environment. As a perfect example, think back to when Esurance first hit the market.
The company provided all documentation digitally and used this to brand itself as an eco-friendly company.
How many trees would you save per year by not printing paper invoices? Estimate it, and use it in your marketing campaign.
PencilPay makes it easy to master online invoicing and improve cash flow. Whether your goal is to save time, save the trees, or both, we can help. Get your 30-day free demo for any of our plans today.