While cloud-based invoicing is steadily becoming popular worldwide, paper invoices have ruled the market. Nevertheless, when it comes to the advantages of e-invoicing, the count is increasing year after year.
Noted below are some of the major benefits of cloud invoicing:
#1: Get Paid Faster
The greatest advantage of cloud invoicing is that it pays faster. Considering that you need not handle the nitty-gritty, funds are available almost instantly.
When you get paid instantly, it improves cash flow. It’s quite huge considering that 66% of small as well as medium businesses face issues with working capital. Delayed payment is a principal culprit of the woes involving working capital, which ensures healthy cash flow.
Paper invoices range between $12 and $30 per paper invoice. This is mainly because paper invoices involve direct costs such as postage and paper. Some hidden costs and indirect costs are also involved.
Now, compare the same amount to $3.50 (on an average) for each electronic invoice. With this, businesses can save up to 60% to 80% over the cost of manual processing. Considering that you are eliminating the extra costs listed above, it becomes the most lucrative choice.
#3: Automated Invoicing
Cloud-based technology automates the invoicing process. It is ideal when you run recurring invoices or a subscription-based business.
Rather than creating an invoice and sending it across each month, funds can be withdrawn automatically from the bank account or credit card of the client.
Besides saving time, it also ensures that are not stiffed on payment. In addition, automated invoices send both upcoming as well as late-payment reminders. Auto-cloud invoicing puts the billing cycle on autopilot mode.
Security is the top priority for a business and clients. Fortunately, cloud-based invoices are the most secure systems online.
Reputable invoicing platforms, however, must adhere to the PCI Security Standards. In addition, companies are facilitating encrypted transactions and using anti-fraud algorithms, which deploy machine learning technology. Most importantly, companies have security staff monitoring the servers 24X7.
#5: Reduced Disputes and Errors
Because it involves a series of steps to prepare paper invoices, mistakes and disputes are obvious. Such errors are usually mathematical or involve logistics issues.
While it does not seem to be a big crisis, but payment may be delayed. In some worst cases, it could hamper your relationship with clients.
If that is not enough, disputes and errors may also cost fortunes for rectification.
As online invoicing calculates for you, it eases major concerns of errors.
#6: Enhanced Brand Identity & Improved Customer Relationship
With cloud invoicing, you can also add color schemes, fonts, and logos mirroring the brand identity. Although it may not sound important, consider that including the logo increases your payment by at least three times. It is the most effective way of getting paid in due time.
You may also be able to add messages to improve customer relationships.
Cloud-based invoices have the API of the developer. As such, you would be able to connect with various other related software. It is also possible to integrate the existing software as you streamline everything online – from accounting for your business to billing and project management.
Customization also exceeds beyond APIs. You can choose a preferred language and a currency depending on the country.
Cloud invoicing is approximately four times more environment-friendly compared to paper billing. It also shows that the business is responsible. Monite has the best cloud-based invoicing solution for businesses.