It’s a dream for any business owner to see new customers pouring in. But managing the billing and invoicing for all the customers can be a hassle, especially if you still use manual billing.
In this post, we talk about how automating your billing operations can pave the way for growth, scalability, and profit for your business.
Manual Accounting: Time-Consuming, Expensive, and Inefficient
Ask yourself this question. When you launched your dream business, what did you envision? Was it to spend several hours every day creating invoices and managing books?
Or was it working with high-paying clients, providing world-class service, and growing and scaling your business?
If you use manual billing and accounting, you probably fall in the first category. And it’s hurting your business in the following ways.
1. Repetitive and Time-Consuming
A report by SCORE showed that 40% of small businesses spend more than 80 hours per year on accounting. When you own a small business, managing time effectively is the key to success. You need to assign important tasks to your staff so they can be productive and facilitate business growth.
But in the case of manual accounting, your accounting department has to spend a significant amount of time creating bills and invoices. Hence, they’re not able to do what you’ve hired them for in the first place – to optimize financial operations and help you make informed decisions.
2. Increased Operational Costs
According to IControlData, manual invoicing procedures cost companies $6-8 per invoice. In the case of complex payable processes, these costs can even surge to $40-50 per invoice. Now, how much profit will you be left with if you burn up $50 per invoice?
3. Risk of Errors
A report by Amalto showed that 39% of all invoices in the US are delayed, with 61% of late payments being due to invoice errors. Manual invoices are at risk of human error and inaccuracies, which can hurt your business in multiple ways.
4. Audit and Compliance Issues
Manual Invoicing requires you to be updated with the latest regulations. Not keeping up with the latest developments can adversely affect your audit and compliance.
5. Inefficient Talent Management
Your workforce is the key to your business success. When you use manual invoicing, you burn out your workforce’s talent. In fact, a Gallup/LinkedIn report showed that manual accounting could cost you $3,400 per every $10,000 of salary.
The Benefits of Automated Billing for Small Businesses
As discussed in the previous section, manual invoicing and accounting can affect your business operations. It can make your business inefficient, less profitable, and non-compliant.
Now, let’s see how automated billing can add tangible value to your business.
1. Seamless Customer Onboarding
You can have an amazing product and sales process. But if your customer onboarding process isn’t smooth, you won’t generate conversions. To ensure consistent sales, your customer onboarding process needs to be smooth.
Automated billing helps you streamline that process. As soon as the customer makes an order, the software prepares a quote, sends an invoice, and enables online payment. This allows customers to do business with you without any hassles.
2. Issue Invoices on Time
If you send delayed invoices, you get late payments. Small businesses often struggle with sending on-time invoices.
Sending late invoices has two drawbacks. First, it leads to delayed payments, as discussed earlier. Second, it ruins your business reputation. When you don’t send invoices on time, your clients will think that you’re not professional.
This can hurt your credibility, and you may have a hard time acquiring and retaining clients.
3. Collect Payments via Multiple Payment Modes
Gone are the days when you could accept only cash and run a business. We live in the era of digital payments, and the use of cash has become obsolete. So, the more payment options to offer, the better chances you have of getting paid on time.
Online Billing Software for Enterprises allows you to accept payment through multiple methods. You can enable your clients to pay you via card, cash, wallet, etc. By doing so, not only do you make it easy for your clients to pay you, but you also increase the chances of attracting new customers.
4. Easily Accommodate Service Requirement Changes
Let’s say you’re a digital agency providing marketing services. The client initially subscribed to your search engine optimization (SEO) and paid advertising services, but after two months, he decided to include social media marketing as well.
With Online Accounting Software, you can easily accommodate these changes. You can instantly update the client’s services and create new, accurate invoices without undergoing a lengthy process.
5. Reduce Churn and Increase Customer Loyalty
Providing seamless customer experiences is the key to ensuring customer loyalty. By implementing automated billing, you can eliminate churn and provide a better customer experience.
Automatic Invoicing software provides insights into customers’ behavior, which can help you determine if the customer will re-subscribe to your services. An invoicing solution also enables you to send automated emails, resulting in the development of meaningful customer relationships.
6. Increased Security
Manual billing and invoicing are highly insecure. You have to save all the information in a cash register, which can be lost, stolen, or damaged anytime. There’s no way to make a backup, so if you lose your cash register, you’ll lose all the sensitive information required to run your business.
Online Accounting Software for Enterprises saves all the information on the cloud. The best automatic billing software vendors, like MoonInvoice, offer cutting-edge security to ensure your data stays safe. The solutions also support automatic backup and restoration, which guarantees that you never lose access to your data.
You’ve worked hard to bring your business to a point where it’s getting repeat customers. The last thing you want is to lose them because of an inefficient and inaccurate billing process. By automating your billing operations, you can make your business more productive and profitable.
If you’re looking for robust online billing software for enterprises, check out Moon Invoice.