5 Underrated Benefits of Utilizing Invoice Software No One Talks About
In a competitive market, having the ability to send and receive invoices with ease can mean the difference between making a profit and going bust. Of course, the most obvious benefits of utilizing invoice software are speed and efficiency.
Invoice software, which can automate many mundane administrative tasks, can free up considerable time and resources. As a matter of fact, this type of software can streamline your entire billing and accounting system. This means that the benefits of quality invoicing software go far beyond the obvious.
Without further ado, join us as we explore five underrated and rarely mentioned benefits of utilizing an invoice software program:
Invoice Software Reduces Errors
The automated process inherent in invoice software greatly reduces the likelihood of errors creeping into your invoicing process. Because it’s exponentially less laborious than manual invoicing and automatically cross-references each invoice with other relevant elements of your accounts system it has a major edge over the human eye in terms of accuracy.
Errors Addressed Via Data Triangulation
An invoice software program allows you to see exactly what’s going on with your business at all times. You’ll be able to monitor accounts processes in real time and make changes as necessary. This is largely because invoice software, with its extensive capacity for information storage and categorization, enables the process of data triangulation.
Triangulation involves comparing data from multiple sources to verify its accuracy. This is an automated function of all quality invoice software programs. It ensures that errors get caught and corrected before any invoice gets submitted. When an error occurs, it can easily get corrected within the program itself, with no need for complicated spreadsheets or painstaking manual editing.
Some invoice software programs can dovetail with data regarding inventory, sales numbers, and more. This enables even more thorough triangulation and speedy identification of business issues that require attention.
Invoice Software Enhances Data Security
If you’re using email or some other manual system for your invoicing there’s no guarantee that your sensitive data won’t get leaked in transit. Top-rated invoice software securely encrypts information transfers and financial transactions. This eliminates the risk of someone seeing the information stored in your database and using it for malicious purposes.
Invoice Software Facilitates Cash-Flow Management & Auditing
Invoice software provides a detailed, up-to-the-minute overview of unpaid invoices. By keeping track of and following up on overdue payments this software greatly facilitates cash-flow management and helps you get ready for month-end.
Moreover, these programs generally allow you to track your payments according to various categories: by invoice number, by client name or company name, or by vendor type. If you use online payment channels, you can even filter by payment method.
Pairing invoice software with expense management software will really take your cash-flow management to the next level.
With invoice software, your billing and invoicing data is securely stored in the system so you can easily retrieve and check it at any time. If your business ends up getting audited, you can easily furnish the auditor with the necessary information without having to manually sift through piles of documents and data.
Additionally, these programs can automatically generate financial reports. This is particularly handy when tax season rolls around even if you aren’t getting audited because it allows you to quickly and easily fulfill tax-processing requirements.
Invoice Software Can Incorporate Related Business Functions
The best invoice software can integrate with other business automation programs, including but not limited to the following:
If you bill by the hour, a major benefit of many invoice software programs is the fact that they either come with or can integrate time-tracking tools. These automatically create invoices based on your rate per hour plus the amount of time spent on the client or project in question.
Additionally, these functions can also generate clear and comprehensive reports regarding how much time you’ve actually spent on a project. You can keep these reports for your own records or easily share them with clients.
Electronic Payment Channels
Whether you’re using small business accounting software or an enterprise product for a multinational conglomerate, your invoices should allow for the integration of third-party payment-processing tools.
Links to these payment processors are then included in the invoice itself or in the accompanying email. These links lead clients straight to their preferred payment platform, making payment upon invoice receipt easier. And the easier payment is, the greater the chances of a quick settlement.
Invoice Software Helps Detect Billing Fraud
In order to steal money from an organization, fraudsters sometimes pose as vendors and issue phony invoices that appear to come from your accounting department. Billing fraud, as you might expect, can cause significant financial difficulties for your company over time.
For example, this is how invoicing software can help you detect two of the most common types of billing fraud:
Most companies pay invoices below a certain amount without question. This is because following up on a low-value invoice generally costs more than just settling it. Billing scammers take advantage of this by submitting below-threshold invoices. If this is done regularly with imperceptible regularity, your net losses can really pile up.
Fortunately, invoice software requires that suppliers register as vendors and submit invoices using feature-rich supplier portals. This ensures that all vendors and their invoices (even small ones) are automatically vetted via this portal.
Phony Duplicate Invoices
Of course, above-board suppliers sometimes make the honest mistake of submitting two invoices with the same number. Unscrupulous operators may however do the same intentionally to sneak double payments without anyone noticing.
Again, invoice software comes to the rescue. These programs detect invoice abnormalities far more efficiently than the human eye ever could. Consequently, the software rejects bills with repeated invoice numbers, so fraudulent duplicate invoices bounce before they can get paid.
Bonus Benefit: Invoice Software Creates A Professional Touch
With all of these benefits, the utilization of invoice software is on the verge of becoming standard practice. The result is that in many industries, the use of it is expected and it’s an indicator of your company’s level of professionalism.
It’s a bit like how any legitimate business is expected to have a professional website and those without one immediately appear suspect. Naturally, when your invoices and payment-processing systems are efficient and error-free, your business will appear highly professional.