Having a highly-functional invoicing system is essential for the healthy cash flow of any business. Invoice management is the difference between chasing up late-payers and struggling with business expenses at the end of the month, and having a streamlined process that brings money seamlessly back into your business pocket. Below we discuss the key tips and tools required to manage your invoicing processes successfully.
Invoicing Software
Invoicing software is included in most leading accounting software packages, and is a major drawcard towards investing in such packages. Once you have chosen your template, added your business logo and any other required information, accounting software is capable of streamlining and automating the invoicing process for you. The system is capable of sending a professional email containing your invoice promptly to any customer upon completion of a service or purchase.
The major benefit of utilising invoicing software is that it provides your customers with a sophisticated record of payment, including a simple and safe method for their payment to be processed. Online invoices generated using leading invoicing software, enables your customers to pay directly from their invoice using leading payment providers including AMEX, Visa, MasterCard and BPAY. Providing these safe payment gateways propels your revenue growth and is a highly attractive feature for customers.
Integrated Accounting
The major benefit of managing your invoices through your accounting software is that the system is able to immediately reconcile and update your financial records. When a customer pays an invoice, the money is securely transferred straight into the accounting software. The accounting software then records the payment automatically before it is transferred securely into your business bank account. This means you are able to see your accounts and invoices automatically updated in real-time. Having a real-time and accurate understanding of your financial position is essential for any growing business.
Real-time Invoicing
The traditional invoicing model requires sending a large batch of invoices to clients at the end of each month. This model invokes considerable difficulties for any business that requires a considerable expenditure to be made prior to the end of the month. It significantly inhibits your business’ cash flow and restricts your investment and growth opportunities.
The concept of ‘out of sight, out of mind’ rings true when it comes to chasing up customers for payment. When you have just provided the service or product it is fresh in the customers mind. This makes them likely to quickly process payment. However, the traditional monthly model means that customers are likely to forget payment, forcing you to chase them up long after the service was provided. Real-time invoicing is therefore a key feature of successful invoice management. Utilising accounting software and automated invoicing tools, the invoice is sent immediately and directly to the customers email. Accounting software also allows you to monitor in real-time which customers have viewed, paid or ignored the email.
Payment Security
When choosing an invoicing software it is essential to ensure that they are compliant with payment security standards and legislation. Leading accounting and invoicing software provides will meet necessary Payment Card Industry Data Security Standards (PCI DSS). This is the information security standard for all organisations that handle credit cards. As these standards and legislation can change at a moments notice, it is also essential to partner with a provider that will ensure that their software is regularly updated to comply with any industry changes.
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Implementing sophisticated, user-friendly and functional invoicing software is key to successful invoice management. As this process is integral to ensuring healthy cash flow, proper invoice management is a task that your business simply cannot ignore.
