When running a business, there are numerous processes that must be performed to maintain clear records and ease of flow for the business. Even when providing online services, these processes must be completed. However, when operating online, it can be cumbersome to transfer these processes back and forth between the computer and hard copies.
Invoicing is a major aspect of business processing. Being able to manage these invoices within the computer system of the company can be very beneficial. It may even eliminate mistakes and provide an easier flow of business in general.
What is an Invoice?
An invoice is basically a record of a sale. When the business provides a service or product to its client, it provides a detailed invoice of all charges so the client can make an accurate payment. Some outside vendors may even provide invoices for your business so the client company can pay for the services and products they received.
Invoices also provide important records for the business. An accurate invoice allows a company to keep track of all services or products sold. This can be beneficial for many other aspects of the business, such as maintaining supplies, paying employees, or any other aspect that involves the flow of money in and out of the company.
Paper Invoicing
Traditionally, companies would use paper invoicing for their business transactions. This would require several copies of the invoice. One copy is sent to the client and at least one copy is kept for records. Many businesses would also require an additional copy for their billings department and another for their accounting department. More may be necessary for other processes of the company.
Just needing all these copies creates a logistical nightmare for the company. The space needed to keep all these invoices combined with the number of employees to process each of these for their particular department can be a huge cost for the company.
If there is a problem or error with the invoice, all copies will need to be found and corrected, as well as any documentation performed from the invoices. Even sending invoices would need to be done through the mail or scanned into a computer for emailing, creating more complications and risking losses and errors.
Online Invoicing
Online invoicing can help any business reduce costs and errors. Instead of needing to keep many copies of the paper invoice, the invoice is created within the computer system of the business. It can then be saved to the company’s main servers or in cloud-based storage.
Just the storage aspect of online invoicing can save companies. They no longer need to have storage space for all this paperwork. Finding the needed invoice is as simple as searching the client. With it stored in one system, any department can easily access the invoice for processing.
The biggest benefit of online invoicing is the power of automation. Many functions can be set up automatically with the right software. Recurring customers can have their invoices sent automatically. Information from invoices can be automatically entered for bookkeeping, payroll, inventory, and record services, reducing the number of work hours spent on such tasks.
Companies can run their online services more efficiently and with fewer errors by utilizing the software necessary to store their invoices online. Online invoicing can also provide a more streamlined process that may save the company a lot of money.