By Angela Ruth
Invoicing, despite being the backbone of businesses of all sizes, didn’t experience a revolution until recently. In fact, for decades the process was the same. You wrote down the services or goods provided, mailed it to your clients or customers, and waited for the payment to return. Even with the introduction of spreadsheets like Excel it remained a lengthy and expensive process. Within the last couple of years, however, electronic invoicing has completely revolutionized the invoicing. In fact, it’s never been faster or cheaper to send and receive payments. As if that wasn’t enough, e-invoicing can also make anyone become an invoice ninja.
The Real Cost of the Paper Invoice
Let’s briefly go over the true cost of paper invoice and why your business needs to ditch them. Permanently.
On average, paper invoices can range anywhere between $12 to $30 each. That’s because each paper invoice comes with;
- Direct costs, such as paper, ink, and postage. Electronic invoicing eliminates all of these direct costs.
- Indirect costs are the expenses needed to complete a task. This includes paying someone to input data to produce the invoice and place bills into envelopes.
- Hidden costs are waiting for the payment to arrive in the mail. These can also be disputes or errors regarding the invoice. It’s been found that this costs over $53 to rectify each paper invoice error.
The Benefits of E-Invoicing
Don’t kid yourself. Paper invoicing comes with real costs. Electronic invoicing, on the other hand, come with real savings.
I know. You’ve used tools like PayPal in the past and were hit with some pricey transaction fees. The thing is, online invoicing solutions have rapidly advanced lately. There are invoicing companies that are free to use and charge a flat transaction rate.
Due, for instance, charges a flat 2.8% transaction rate for all card types. Additionally, most platforms allow businesses to accept ACH, bank transfers, or bitcoin. These each are free or have minimal costs associated with them.
In fact, Concur has found that automation delivers an average of 29% reduction in invoice processing costs
Besides the savings, which also include savings on paper, ink, and postage, electronic invoicing system saves you and your employees a ton of time. That’s because you can set-up recurring payments and automated follow-ups. But, that’s just the the tip of the iceberg.
E-invoicing also reduces all of the work involved in creating invoices via a spreadsheet, capturing expenses and billable hours, and processing the client’s’ data. That doesn’t include all of the bookkeeping components of accounting like business Intelligence, taxes, and data storage.
How to Be an Invoice Ninja
Are you sold on the awesomeness of electronic invoicing? If so, here’s some crafty tips on how to use it to become an invoice ninja:
Make invoicing easy.
Invoice masters can convert quotes or estimates into invoices to make this process even faster. Even better? Tools like Flint allow you to capture payments on the spot by snapping a picture of a customer’s credit card to process a payment.
Capture all …read more
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