Historically, when it came time to get paid, businesses mailed out an invoice and waited for a check to arrive. Fortunately, that system has stepped into the digital era enabling a faster and safer alternative. Businesses can send invoices and accept payments through a single program. This can be used by service providers, online auctioneers, and others with long-term contracts. And it's growing quickly. Globally, electronic invoicing, also called e-invoicing or e-billing, is expected to grow 19% a year through 2024, an increase of nearly $7 billion, according to business wire. The key drivers are convenience and easy accessibility of mobile payments systems.
Is it time to add e-invoicing to your business?
Let's take a look at eight benefits.
With an online bill management system, you send a digital invoice for products and services to your customer or client. They then pay online with a credit card. All you need is a software program to manage the invoicing and payments and a merchant processing service. The invoices and payments are tracked so it's easy to generate reports and watch what's happening with your billing and payments.
With online invoice management, payments can be made from anywhere on any device connected to the internet. No more waiting for a check to arrive or worrying that it got lost in the mail. Additionally, during a pandemic, in-person payments aren’t feasible or safe, so it’s been an accelerator in moving to online payments.
Without online invoice management, you’re still dependent on an old model of mailing invoices and receiving checks. This could lead to significant fluctuations in cash flow. When customers can pay online, you get paid quickly. If you look at your current accounts receivable timeline, you’ll likely find room for improvement that can only come with online payments.
Most buyers trust online payments and consider them the norm. Robust security frameworks have layers of security protocols and encryption. An online payment platform also documents every transaction.
The payment process can be disjointed and complicated. Digitizing it makes it simpler and easier. Manual practices can also cause errors. By moving your billing to an online platform, you streamline the process easily. You’ll have visibility and transparency in your billing ecosystem that would have been impossible without shifting online.
Vendors and businesses appreciate convenience when it comes to bill pay. The more they can make payments online, the easier it is for them to manage their accounting. Without such flexibility, you risk losing partners and vendors.
In the case of large expenditures, vendors welcome the opportunity to let customers make a purchase on their terms. By using a credit card, they can break down the cost into installment payments, which can help with cash flow challenges. Offering this flexibility could boost sales.
Online invoicing leaves a documentation trail. It’s a digital ledger that requires less manual work. The time of keeping physical logs has passed. Now, vendors can enjoy a digital money trail so they can easily track transactions. These detailed records can also assist with tax filing and budget allocation.
Inefficiency is the foe of businesses, and manual bill management fits the definition. Vendors and customers can save significant time with online payment options. When you remove the need to submit payment in person or by mail, it slows down the process. Every business wants more efficiency in paying their bills, and doing so online is the ultimate reflection of it.
Going digital not only delivers many benefits for you and your customers but also gives you a competitive edge. It's not just keeping up, it's leading the way. With this convenient, secure, and fast approach to billing, you’ll gain many efficiencies and make it easier for others to do business with you.
To setup online invoicing and improve your customers' experience, speak with a specialists now.