Small and medium-sized businesses rely on a steady cash flow to maintain operations and achieve sustainable growth. Unfortunately, completing processes like invoice management efficiently can be difficult without the right resources.
So, what can improve cash flow management and help enterprises thrive? The answer is digital invoicing for faster cash flow.
The Problem With Manual Invoicing
Manual invoicing and non-digital payments often go hand in hand. However, when businesses don't embrace electronic invoice processing and digital payment options for customers, they can unintentionally create expensive delays in their workflows and payment systems.
For many small and medium-sized businesses, one of the biggest challenges in their collections process using manual invoicing is speed. The non-digital invoicing process requires data, input, and resources from accounts receivable teams and other staff, which can affect the speed at which businesses send invoices to customers. Also, receiving payment is slower when customers don't have access to digital payment options.
A lack of accuracy is another common issue with manual invoicing. Manually inputting data into invoices and reports increases the risk of errors. This issue can affect cash flow management, especially for enterprises that invoice at scale.
Non-digital invoicing processes also make it hard for companies to resolve disputes. Without digital invoicing, customers and businesses may not have shared visibility into payment histories, invoices, and past communications. Thus, it becomes challenging to facilitate swift information sharing to handle disputes effectively.
Best Digital Payment Solutions for Streamlined Processes
Digital invoicing for faster cash flow benefits companies seeking to improve their efficiency. It eliminates the need to manually fill out invoices, mail them, and wait days or weeks to receive payment.
When customers can get digital invoices in their emails, they can quickly and easily view their account information. They can also electronically pay their current balances using the secure payment form attached to the invoice and a card.
If customers choose not to use a bank card, they could opt for an electronic check to settle their payments online. An eCheck uses a person's bank account number, routing number, and payment authorization, which the merchant will process electronically. Businesses can also set up automated payments with eChecks.
What Are the Top Benefits of Electronic Invoicing?
With digital invoicing and payment options, businesses can enjoy several benefits, including the following:
Improved Accuracy
The risk of errors on reports and invoices decreases substantially with digital invoicing. Accounts receivable personnel can worry less about missing or inaccurate data when they don't have to enter information manually. It's also easier to track payments and stay on top of late accounts.
Better Cash Flow Management
Advancements in electronic invoicing allow tools to integrate with accounting software and payment gateways seamlessly. Sage, QuickBooks, and PayPal are prime examples of such software. The integration and automation ensure accurate invoices, automatic tracking, and real-time reconciliations.
Quicker Payments
Making and sending paper invoices and waiting for payment takes too much time. Since payments don't occur immediately, a business can experience unexpected issues with its cash flow. However, when companies choose digital invoicing for faster cash flow, they can send invoices and receive payments in minutes.
