Invoicing plays an important role in a business transaction, precisely because it leads to the generation of revenue. Creating an invoice solidifies a sale and confirms the fact that a deal is closed.
There are multiple ways in which businesses go ahead with the invoicing process. While some organizations still make use of the traditional system of writing details on a piece of paper, the others use printed bills and send them to the customers/clients for releasing the payment.
However, over time, businesses have started switching to a more automated system of generating and clearing invoices. The best invoice software platforms allow you to create, send, and track invoices with the click of a few buttons.
This paperless invoicing process helps businesses in keeping their transactions organized, precise, and more accurate by using automated tools. On the other hand, invoicing templates obtained from platforms like Microsoft Word and Excel is limited to helping you get the transaction details printed on a blank page.
Here are some of the most important reasons to choose invoice making software over-invoicing templates:
Invoice Software Makes Sure You Get Paid
As mentioned earlier, the invoicing templates are limited to putting the transaction details on a blank page that can be sent to your customers. The scope here is limited.
On the other hand, the scope of invoice software goes beyond sending invoices to your customers. Such software platforms make sure that the customers pay you when they receive your invoice, often on an immediate basis.
You can attach convenient payment options along with your invoices, such as a provision for adding debit/credit card details or the bank account details of the customers. Adding a simple “Pay Now” button with your invoice allows your customers to pay you immediately by making a few clicks.
Invoice Software Automates Processes
An invoicing software platform automates a number of processes revolving around creating, sending, and tracking invoices. In case you have a paper invoice, you can avail of an automated invoice scanning service to extract all important details from your document using the OCR (optical character recognition) technology.
Also, invoice software prevents you from following up with every customer as the due date comes close. It allows you to send scheduled and automated payment reminders to your customers to ensure that the payment is received on time.
Further, invoicing software allows you to automate the creation and delivery of recurring invoices in case you provide subscription services to your customers.
Seamless Accounting
Using invoice software takes care of your key accounting activities as well. Based on the invoice you generate and the amount you receive, the software keeps all your accounting information on a centralized platform, helping you navigate through processes like taxation easily.
Effective Data Management
When you use an invoicing software platform, it stores a variety of data on a unified platform, including information about your customers, products, prices, etc. This data can be used for carrying out important analytics.
For example, you can track the sales made to each customer over a year to determine your most valuable buyer. Also, you can track all your invoices to determine the time of the year when your sales peaked or dropped.
Moreover, the best invoice software platforms help you store your data on the cloud, freeing your device from bearing all the load. This also aids in increased flexibility as you can manage your invoices from anywhere using any device having access to the internet.
Increased Customization
An invoice need not always have the same boring look to it. Depending on the nature of your business and your target audience, you can customize your invoice while using invoice software. These platforms allow you to play with graphics and design your invoice in a way that impresses your customers.
Also, you have an option of personalizing specific invoices for specific customers for building a loyal base and leveraging your brand value.
Making Changes Easily
When you make use of invoice templates from Word or Excel, you cannot easily make changes once the invoice is ready and printed. On the other hand, using invoicing software allows you to make real-time changes in the invoice you create and update the same according to your convenience.
Reducing The Scope Of Error
When you use an invoice template, you need to fill in the required details every single time whenever you are creating a new invoice. This increases the chances of committing errors which can have unwanted implications.
On the other hand, an automated invoicing platform would create an invoice for you using the details stored within your database. All you need to do is add the correct details once and you can create multiple invoices in the future by clicking a single button. This significantly reduces the chances of entering incorrect details within your invoice.
Faster Creation And Delivery
Especially if you are dealing with multiple customers on a daily basis, it is important to create and deliver invoices as soon as a deal is finalized. Invoice software helps you in meeting all your deadlines and creating invoices in a matter of seconds.
Also, the automated platforms save you the time taken for calculating VAT, service charges, and other relevant charges to be added to your invoices. Once you have your invoice ready, it can be readily delivered to the customer in a matter of seconds. This streamlines your sales cycle and organizes your invoicing process.
The Final Word
Although invoicing is an extremely important process when it comes to conducting sales, it does not deserve an unusually long amount of your time. However, you cannot afford to make the smallest mistakes while creating and sending invoices.
All these problems can be solved by implementing invoice software within your organization. It is always advisable to go for an automated invoicing platform that provides you with a wholesome approach. As you automate your invoicing process, your team can channel their time and effort on the core business processes that require undivided attention.
