Three Reasons To Use Electronic Invoicing or An Invoicing Tool

Electronic invoicing is the practice of sending an invoice through electronic means, such as email, instead of paper. Today, businesses offer two invoicing options to their clients and consumers: they can either opt for paper invoices or electronic invoices. There are many advantages of using electronic invoices. This blog lists a few of them.

Business Invoicing Software

Cost savings

From the businesses’ perspective, the biggest advantage of switching to electronic invoices is cost savings. It costs a lot to purchase paper on which invoices are sent and then invest money in printing and postage. Electronic invoicing has none of these costs. Instead, electronic invoicing depends on software or invoicing tools that can be automated to send invoices at a fixed schedule. Invoicing tools saves businesses – both large and small – money. Businesses can use this cost savings to their advantage by passing on some of the benefits to consumers.

Consumer convenience 

If seen from the consumers’ eyes, electronic invoices are easier to accept and pay. Many businesses and firms are already developing techniques and including links in their invoices that allow their clients and consumers to pay straight through the email. Some firms have special agreements with bank that offer easy and quicker bill pay services to their account holders. When such an agreement is in place, clients can choose to connect their bank account with the invoicing system in such a way that payment occurs automatically at a fixed date.

There is no doubt that electronic invoices save consumers time and money. It is less expensive and more convenient to check the electronic inbox than go out to the physical inbox to accept snail mail and then spend on postage to pay for it. There are environmental benefits of using electronic invoices because it leads to reduced paper clutter and waste.

Faster payments 

A third advantage is the speed. Electronic invoices are faster; and here is one extremely compulsive reason to use them. This is the sole reason businesses that want to be paid early and quickly should use electronic invoices. An invoicing tool – at least in theory – allows for instantaneous payments.

There are many advantages of using electronic invoices. The top three of them are: cost savings, consumer convenience and faster payments. 

Why use Online Invoicing Software For Recurring Invoices?

Recurring invoices are mainly used by businesses that provide subscription services. These businesses are often the providers of products and services whose use is ongoing. For instance, many magazine publishers, internet providers, and electricity distributors prefer recurring invoices over one-time billing. They do this for several reasons. For one, it is more convenient. For two, it makes accounting easier. For three, it maintains uniformity and gives away an impression of professionalism.

It is time consuming to create online invoices manually. This method is prone to errors, too. A faster and more efficient way is to use an online invoicing software, or a project invoice software. Such tools have several advantages for your business, if you use recurring templates more often than one-time billing. This blog lists the top two of those advantages:

(a) Time efficient

Online invoicing software is time efficient. It creates invoices faster because templates are often readymade. If you are using the right tool – such as Talygen – you have a vast array of templates available. It is possible to use any of them. Picking up a template and setting it as the default for recurring billing saves you much time.

(b) More professional

Professional invoices are paid faster. An invoice software produces professional-looking invoices and keeps their design and format uniform over the course of many months. In contrast, handwritten invoices are more prone to changes in design and format. Frequent changes in invoice appearance can lead to payment delays.

There are many advantages to using an online invoicing software. The advantages are particularly great if you frequently use recurring invoices. In which case, a software tool can help you make more professional invoices without demanding long hours from you. So you make invoices fast, without compromising on quality and get faster payments. 

Four ways to get paid in time

Nearly two-thirds of small- and medium-size businesses (SMBs) wait for 60 days before getting paid. These are the results of a survey carried out by the National Federation of Independent Businesses (NFIB). The respondents participating in the survey said that the delays were on the rise. Two-month long delays do not bode well for businesses. They need immediate funds to pay their bills and continue growth.

The good news is that business can reduce the waiting time to 29 days – nearly four weeks faster – if they use a combination of best invoice practices and the right invoicing tools. This blog suggests four strategies SMBs can use to get paid faster.

• Sign a written contract

Miscommunication or confusion on payment terms leads to delays. You can avoid much headache and long delays if you and your client sign a written contract in the beginning. The contract should specify the services and/or products you will provide and the payment terms. A clear contract cuts down on confusion and leads to stronger relationships.

•Send invoices quickly

Any delay in the delivery of invoices leads to late payments. Send your payments the moment you have achieved a milestone or finished a task. You increase the chances of a client paying you quickly when you do this because the work is still on the client’s mind.

• Create clear invoices

When you create an invoice, ask yourself if it is crystal clear. Miscommunication and over-communication are hindrances to quick payments. They can confuse your client. Include all the essential information in your invoice. And, present the information in a format that is readily readable.  There are a few excellent web-based invoice creation tools available. You can create clear invoices through them.

• Use an invoice management tool

Do not rely on paper and pen. It is time consuming, it is slow, and you are more prone to mistakes. An invoice management tool promises consistency. It is rapid. And if you are careful, it never makes a mistake. An additional advantage of software is that it maintains a professional tone in your invoices.

Businesses can cut down on payment delays if they agree on payment terms in advance, send invoices quickly, keep them clear, and use an invoice creation tool instead of relying on pens and paper.