If your company relies on an invoicing and billing system to generate revenue, it may be worth your time to analyze the systems and processes you’re using to find out if they are truly the best options for you. Below are some surefire signs that the system you are using may not be living up to your expectations and it may actually be time to upgrade your accounting software.
Are There Numerous Mistakes in Your Invoices?
Invoicing mistakes can wreak havoc on your company. If they’re in your favor, it can tarnish your reputation with your clients and customers – especially if they have overpaid for a product or service in the past. If they are in your clients’ or customers’ favor, it may not affect your reputation negatively, but it certainly can cause you to miss out on a significant portion of your revenue. If mistakes seem common, it may be time to reevaluate your invoicing and billing system and consider moving to something with more automation features.
Are Your Invoices Going Out on Time?
Invoices and bills should be sent out as soon as possible after a service is rendered. In some cases, it may even be better to send an invoice before the product or service is provided. In either case, ensuring that clients and customers receive their invoices in a timely manner is important. If they receive the invoice weeks after the fact, they may ignore it or even call to question it, and this can disrupt your cashflow a great deal. Your invoicing and billing system should allow you to generate and send invoices mostly automatically – and soon after the service or product is rendered.
Are There Several Payment Options?
Another important consideration to make when it comes to your current invoicing and billing system is convenience. Does it give your clients and customers the option to use whatever payment method is best for them? If it doesn’t, this can cause delays in remitting payment, and once again, that can disrupt your cash flow. You should always use a billing system that makes it easy for your clients and customers to pay their invoices online via credit card, debit card, or even an electronic wallet service – whatever is best for them.
Can You Get Information in Real Time?
Depending on the size of your company, you may have an accounts receivables team contacting clients or customers about their unpaid invoices throughout the week. This collection activity can and often does help companies improve their revenue, but it can also be frustrating for your clients and customers if information isn’t updated in real time. For example, if a client pays his or her bill at 9am, but the system doesn’t update immediately, then that same customer may receive a frustrating collection call at 3pm the same day. To prevent this, make sure that your invoicing and billing system updates information in real time.
As technologies continue to improve, and as financial management software systems get better about allowing companies to customize them to their needs, there is no reason to continue using an invoicing or billing system that is not serving your company well. If you are dealing with numerous invoicing mistakes, delayed invoices, or even a lack of up-to-date information, it’s time to consider upgrading.