13 Benefits of Online Invoicing for Small Businesses

In a traditional business model, every paper procedure is full of administrative steps and quirks. Also, it is time-consuming.Time is money, especially now when everything tends to automate.

We used to print invoices for years, put them in an envelope and send by mail to the customer. Although there is a more effective solution today, many companies still send invoices this way. There are so many reasons why you no longer need to do that.

Why do you need an online invoicing?

Online invoicing (e-invoicing) makes easier to keep track of bills and payments. This business component is time-consuming and inflicts a headache to suppliers.  Companies are used to store invoices in a folder and sending them by email doesn’t reduce the workload.

In the traditional business model, invoice tracking is hard. The absence of this important aspect often results in the increased occurrence of unpaid bills. Especially small business owners can’t afford something like that, because it leads to a rapid decay.

With online invoicing this possibility is minimal. It´s fast and easy to send and track invoices. This is just one, but here are another 13 ways it can benefit your business.

  1. Cost reduction is something every business needs

A lot of paperwork is past! With online invoicing you don’t need papers, envelopes and stamps anymore. Also, you don’t need a storage. This significant shift leads to savings for a company –  both the cost savings and savings of space.

Preparing and processing paper records takes time, which also raises administrative costs. Online invoicing revolution takes out these unnecessary steps and costs from you.

  1. Time is money, save it with online invoicing

With online invoicing, you can quickly create and send many invoices. This saves time, which is a resource that we often miss the most. When you save time in invoicing, you can spend a lot more time on important business activities, such as improving conversions, managing your staff better or spending that extra few moments and signing that important contract you’re after.

Online invoicing shortens the time between sending an invoice and receiving a payment. You are sure that your invoice arrived to the right person and you get the notification when an invoice is opened and read by the customer.

With online invoicing software, you don’t have to worry whether your invoice is delivered to the right person. Also, it saves you time, because it is delivered instantly. If you, however, decide to make a correction, the person on the other side sees the change. So you don’t have to send a new invoice every time you make a mistake.

  1. Scheduling invoices enable you to send them at the right time

You can set up your e-invoice software to automatically send out invoices at specific dates and specific time. You don’t have to worry about that anymore, the software does everything for you.

All freelancer can benefit from this feature and it doesn’t matter if you’re in the consulting, marketing, web design or some other niche. I sometimes forget to send my invoices because I have so many clients and online invoicing is a great reminder for me, as well.

And when a client opens and reads invoice, you will get an automatic notification about that.

  1. Access your invoices everywhere

With online invoicing, you can manage client information and billing from one web application. Be more productive and get your financial status in one place.

You don’t have to be in your office to find, send or do anything else with your invoices. Cloud system only requires internet connectivity. Imagine accessing invoice data from anywhere, even from your smartphone.

Good organization saves your time and nerves. With online invoicing you can easily organize, manage your invoices and search for information in them.

  1. Reminders are gold

Solvency means receiving payments on time. Online invoicing reminders will help you with this. Set automatic notes and reminders for each client, and notify them of payment due dates, even after they expire.Don’t forget to follow the 5 golden rules when following-up late payments.

You no longer need to worry about it, because the system works everything for you. It simulates debt collector and takes care that you will be paid on time. I found this feature very useful on several occasion. Sometimes, your clients don’t mean anything bad, it’s just that they too much going on and simply forget about due dates.

  1. Online invoicing system eliminates errors

In traditional paper invoicing there are many steps and also a bigger possibility for errors.  This takes a lot of time in correcting.

Missing information and invalid numbers were the past. Now it is simple to correct every information, by editing invoices like you would any other text document.

  1. You can use many currencies and languages

You can use many currencies in online invoicing. Also, you can use different languages for your documents.

New payment gateways are constantly being added, so with online invoices you can most certainly find a gateway that suits both you and your clients. Online invoicing gives the option for clients to pay directly from invoice with the use of online payment services. It offers easy and instant payments.

  1. Customize and brand your every invoice

Use invoice to professionally represent yourself or your company and increase the possibility for faster payments.

You have a lot of templates available or you can easily create your own. Customize the invoice design for each client and test which one speeds up the process. Here’s a nice guide on how to properly brand and color your invoices.

  1. Secure connection

SSL encryption is the security base of all internet communication, so why not use it for online invoices. An online invoicing software is secure and safe to use.

Invoicing should be nobody’s business, but your own. Every invoice sent is using the most secure, encrypted connection available today.

  1. Global overview of your finances

With an online invoicing system you get reports on financial aspects of your company. The system creates analytics data you can use to monitor your current account status, invoices that have yet to be paid or clients who are often late, so you’ll know which of your clients seeks more attention.

With just one click you can list all invoices and see its payment status and an amount of money clients owe you. Find out which invoices are paid, which ones are due or past due date.

  1. Think green

One of the greatest perks of using the internet, is that it will put you on the path of becoming a tree hugger. Protect the environment by eliminating the paper from regular use.

One paper invoice less will not save the planet. But, when you consider the number of several billion invoices generated every day, you’ll understand what I’m writing about.

According to the study conducted by the Federation of Finish Financial Services, the carbon footprint of a single online invoice can be as small as 150 grams, whereas for a paper invoice the same figure is 450 grams. This corresponds to 1 and 3 kilometers drive in a passenger car respectively.

  1. Backup your data

If a disaster happens, don’t worry. Online invoice software backups your data several times per day. You can always quickly restore all your sensitive data.

It’s important to have this data secured and we understand that businesses rely on this data to be available at all times.

  1. Modernity and professionalism

Online invoicing systemwill disclose a modern and professional impression on your customers.It helps you cut many of the delays and barriers to payments. Without cash flowing into your business on time, you may experience stagnation.

Whether you’re a brick and mortar local business, online web studio or a marketing firm, it doesn’t matter, prevent that with online invoicing. It offers you a much bigger possibility for faster payments and your company will have better cash flow. More money and more time for more important development activities mean a better chance for growth and sustainability of your business.

Mark is a biz-dev hero at Invoicebus – a simple invoicing service that gets your invoices paid faster. He passionately blogs on topics that help small biz owners succeed in their business. He is also a lifelong learner who practices mindfulness and enjoys long walks in nature more than anything else.