Invoicing is a critical part of running a business. After all, it’s how you keep track of the exact amounts of money flowing into the company. Accountants everywhere need to know how to issue invoices in order to accurately record each transaction.
There are two options you can generally choose from when it comes to creating invoices—online invoicing software or invoicing templates. Templates are simple and easy for small businesses that don’t have the support of a full accounting firm. They can simply be downloaded and edited in Microsoft Excel or Word, ready for the filling in of the details. After the information has been put in, they’re ready to be submitted to clients.
When accounting firms prepare invoices for their clients, however, they have to keep up with a huge volume every day, repeating the same process over and over. Using a template can become tedious and result in errors that could have major repercussions on the client’s financial reports. There is a much better way to create client invoices in a more efficient and effective way—an online invoice software or e-invoicing!
An e-invoice is created in the seller’s online bank or web-based invoicing system, which can either be downloaded and sent directly to the buyer’s software for payments. This form of invoicing is structured and eliminates unnecessary steps like accuracy check, swapping software, or manual data entry.
Here are some reasons to choose online invoicing software instead of invoicing templates:
1. Up-to-Date Invoices
Online invoicing software has the great advantage of being updated regularly. This means that the software is aware of changes to any requirements relating to invoices, including legal ones, and they are able to update the software accordingly to comply with these changes. If you use Excel or Word, you have to keep up with any changes in regulation and update your template yourself. Free versions may be easy to fill in and look relatively professional, but they are not updated as often as they should be.
2. Ease of Client Payments
An accounting program and online invoicing provide an added benefit for your clients: the option to add in and link online payments, such as online bank transfers and PayPal. This option makes it a lot easier for your clients to pay their invoices online as soon as they are received and get paid faster.
3. Minimized Risk of Human Error
When using an invoicing template, all information must be keyed manually every time you create an invoice. This opens a relatively large chance for errors—from keying in the wrong contact information to typing the wrong price tag for the products. Online invoicing software can automate various processes, such as invoice numbers, properly encoding each new invoice accordingly and auto-filling all contact details.
4. More Convenience of Tracking
Using an online invoicing software allows you to keep track of all of your invoices. When you’re an accounting firm with several clients, it’s crucial to differentiate! You will be able to know when a particular invoice has been sent, viewed, and paid by your client. There is no need to follow up to check if the invoice was definitely sent or received. There are even software providers that will let you know when your invoice has been viewed by your client!
5. Increased Data Integrity
The accuracy of data from using online invoicing software reduces the risk of fraudulent or incorrect bills. From your clients’ perspective, this is a major benefit! The authenticity of the data from e-invoices is automatically validated, making sure that all information sent to clients is correct.
It’s really just simple. An online invoicing and billing software is pretty straightforward, feature-filled, and free of charge. Whether your clients are freelancers, small business owners, or startup entrepreneurs, helping them make the switch to online invoicing software is a great idea. If you are looking for invoicing & payment software, get in touch with My Firm 360 for more information today!