In the business world, billing software simply refers to computer programs that take care of the tracking of billable services and products that are delivered to customers or segments of customers. Some software also allows you to track work hours for the purposes of billing.
These programs automate a lot of what was once a very time-consuming process for businesses that involved hand-preparation of invoices and various other types of documentation.
Modern Custom Billing Software Development now creates a structure for today's businesses to propel into the digital era, allowing for greater ease of use and better productivity across your business administration channels.
Here, we'll take a close look at some of the benefits, key features and advantages of electronic billing for your business.
Let's dive in.
Benefits of Using Software for Your Business Billing Practices
There are many benefits when it comes to going electronic for your billing. Each one can make running your business invoicing nearly hassle-free.
1. Send Out Invoices Immediately
The speed of sending out an electronic invoice online is a huge advantage over printing one out and sending it through the mail. You'll get your invoices into customer's hands quicker, and get paid for your products and services sooner.
Good software will allow you to automatically send out your invoices at specified times and dates. It'll also allow give you the ability to integrate your billing into your accounting software. You'll no longer need your accountant to do this for you.
You'll also be able to invoice for anything, at any time. There's no need to wait until you're in the office.
2. Improved Invoice Tracking
The software you use for billing will allow you to:
View payment status
Create reminders
Generate and run insightful reports
Create an audit trail
As a business owner, you can't afford to lose money, or not get paid for your products or services on time. Thoroughly tracking your invoices ensures that no pending payments fall through the cracks and that all of your bills are paid in a timely manner.
You can even use payment services that allow you to receive money instantly without waiting for it to arrive through the mail.
3. Save Time and Money
Traditional billing methods are a waste of time and money. Whether you're doing it yourself or have a staff member do it for you, it's still extra bookkeeping time that could be better spent elsewhere.
When you invest in this type of software, it also helps ensure that you won't need to struggle with complex account reconciliation. The software will keep track of all this for you automatically.
4. Save a Ton of Paper
Traditional billing and accounting practices required the use of a lot of paper that would need to be filed, stored and archived for years. When you bring your billing practices to the digital world, there will never be a need to print out anything. All records are properly indexed, archived and electronically stored.
Cutting down on paperwork cuts down on costs, is good for the environment, and reduces unnecessary clutter around the office.
The Key Features of Billing Software
Your software is only as powerful as the features it employs. Before deciding on which company's license to purchase, make sure that the software utilizes the following features.
1. Invoices and Permit Modifications
The software you choose must allow you to create clear, professional invoices for your customers. The information contained within the invoices should also be fully integrated with projects and customer records so you can collate the data.
This aids in the creation and maintenance of a centralized data repository.
2. Create and Send Customer Estimates
When you approach a customer about a potential purchase, they'll be looking for a professional estimate. The estimate will give your customer a ballpark idea of what they'll need to spend, along with additional details such as:
Services provided
Timeline
Scope of project
Exclusions
Use software that enables you to send these estimates along with an immediate link for payment. Once the customer accepts your estimate, they'll be able to pay using the link, and the estimate will be automatically converted into an invoice.
3. Bulk Invoicing
Invoicing is a necessary evil that takes a lot of time and effort. Software makes things much faster by allowing you to do bulk invoicing.
Make sure you use software that takes data from Excel or APIs as input, then creates invoices for every customer that's listed. This frees up your staff from needing to create invoices one at a time.
You can also email your invoices to your entire customer base simultaneously.
4. Track Your Base of Customers and Set Financial Goals
Custom billing software development professionals know that customers are the heartbeat of every business. Without good customer relations, no business can function.
The software you're looking for needs to be able to collect information about your customers that can help you serve them better. This is especially true when it comes to factors such as personal details and purchase histories.
Having this information within your software program helps you to develop effective marketing strategies and target products to customers who are waiting to buy.
Additional Features Your Payment Billing System Needs
Beyond these four features, there are several others to look for in the software you decide to buy or license. These features include:
The ability to track your customers for invoicing and billing
Quick and easy offline and online payment collection options via a central dashboard
Software that's bundled with a wide array of customized invoicing templates
An ability to automate payment reminders and late fees
If the billing software you're looking at doesn't have all of these key features, keep shopping to find a solution that does.
Advantages (and Disadvantages) of Electronic Billing
You're likely already seeing the many advantages of billing electronically. There are many other advantages to note, including:
Electronic billing is paperless, which makes it clutter-free and eco-friendly for you and the invoicee
Electronic billing is far less expensive than traditional billing practices
It's hassle-free. You can protect all billing statements by password-locking each invoice, only to be opened by the recipient
It's customer-friendly and efficient for your business. The focus is on the billing process rather than the mode of dispatch
You'll eliminate the effort and time that's been wasted during traditional billing methods
Invoices can't be lost. Even if a customer deletes an email containing the invoice, it's easy to forward it back to them
As with almost anything else in life, there are a few disadvantages of electronic billing:
A lot of systems are outsourced, which results in billing fees
There can be a concern about the security and safety of personal information, due to the increases in malware and spyware across the web
Customers get charged for products and services instantly, rather than having the ability to receive a paper bill and send out a check at their leisure
If you experience regular internet downtimes, customers could get frustrated and give up on using your electronic billing system.
However, even with the potential disadvantages you could face, the good still far outweighs the bad.
Is It Time for an Electronic Payment Billing System in Your Business?
Now that you understand what software for billing can do for you and your business, it's time to see what options are available to you.
Chetu offers custom billing software development that can make the entire process a breeze. Request a consult today, and let's get to work making your billing issues a thing of the past.
Chetu
Chetu has been a top worldwide multi-industry Software Development Company for over 19 years! We have 1800 developers, are a Forbes Technology Council Member, been a six time Inc 5000 Honoree and have created 16,000 Apps. We Truly Know Software Development!
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