Every business owner wants to get paid… but invoice systems can be complicated.
Especially old school paper invoicing. But did you know 56% of all bills are now paid online?
Electronic billing is taking over the world of business… But what’s all the fuss about?
There are some key benefits to electronic billing you should consider before implementing it in your business.
And there are probably some you haven’t even thought of. For example, an electronic billing system can help you sell more of your products and services.
Read on to find out how.
Having an electronic billing system can greatly reduce stress by:
- Simplifying reporting
- Creating transparency
- Minimizing errors
These three things greatly increase convenience when it comes to your invoicing and billing.
Simplified reporting creates straightforward overviews of how effective your systems for billing are working. You can see places to improve.
For example, if you’re having trouble getting invoices paid on time consistently, you could consider implementing a reminder email into your system a few days before payment is due.
This also creates transparency for your consumer. They can see when their bill is due, when, and previous invoices in a comprehensive overview.
The transparency is a two-way street. Your business can also benefit from this overview. You’ll see all of your customers and they’re standing with invoices, both past, and present.
The system can even help your customers manage unpaid bills better than a paper system. This is because they can receive reminders and pay however they want when they want.
The last point on convenience is the minimization of errors when using electronic billing.
By using a software system, the points of contact for data entry by humans becomes decreased. This means there’s less room for error when it comes to the numbers.
2. Professional Consistency
Well managed electronic billing can be great for your brand reputation. It ensures quality and consistency every time.
Think of it this way: Every invoice, quote, or email is a representation of your brand and business.
By billing people online, you’ll have professional looking templates you can use every time.
This creates a consistent brand image. Your billing and invoicing are a way your customers see your business visually.
So you want it to be a true representation of your company’s professional appearance.
You’ll also have better communication with your clients around invoicing. For example, you can set up an electronic system to consistently deliver email reminders a few days in advance of billing.
3. Better Records
An electronic billing system allows you to keep all your records in one place. Rather than having a filing cabinet full of wasted paper, you can store everything in the cloud.
This has other benefits too. For example, you can check out client invoices while you’re out of the office by accessing your software.
It’s also convenient to go back into your records when they’re online. Rather than having to dig through pesky folders, you can simply find what you’re looking for with a few clicks of the mouse.
These records can also be used to gain valuable insights into your business. They could include:
- What type of clients consistently pay their invoices
- What systems work best to get paid on time
- Your customers preferred ways to pay
And more. Think about what KPIs you may want to take from your electronic billing system to benefit other areas of your business.
4. Subscription Management
One of the best electronic billing hacks is it allows you to set up subscription services with consistent billing.
For example, if you decided to set up a service where you consistently provided the same content each month, you could easily receive payment from your subscribers through electronic billing.
This eliminates the need to send out invoices in the mail or via email, both of which can be time-consuming.
Any recurring type payment can be set up through electronic billing. This can also help you increase your number of repeat customers by simply making it a no-brainer to repurchase from you.
For example, if you’re a company that provides a seasonal service when a new customer signs up, you could offer them the convenience of automatically being signed up to get the same service the following season.
This is a great way to follow up with leads in a way that makes it easy for you and them.
5. Email Reminders for Clients
Over half of customers rate electronic billing as very important to them. A huge part of this is because mail is becoming extinct.
Clients generally want to pay on time and keep their books in good standing. But they often miss invoices altogether, especially when they’re coming via snail mail.
Electronic billing allows your clients to pay on time in a way that’s convenient for them. And it allows you to reduce administrative tasks.
So while implementing an electronic billing system is an investment, it can save you money in the long run.
It does this by saving hours spent on admin tasks. It also helps you get paid on time, which is great for financial planning in your business.
6. Save Time
Electronic billing creates a ton of convenience in your business, including saved time. You can learn more about how by checking out the link for a convenient electronic billing system.
And we’re not just talking your time. This is also the time of your clients.
Think about it: How much faster is it to click a button and enter a credit card number…
Versus write a check and send it out in the mail?
The first option definitely is easier for your clients. And better for you, too! You’ll get paid right away… it’s virtually instant.
7. Instant Updates
Speaking of instant, what’s better than getting updated instantly on what’s going on in your business?
Electronic billing allows you to immediately get notified when you get paid. It also can instantly update your electronic reports.
This makes it easier to get a day to day overview of what’s going on in your business financially. Manual reporting makes it a lot harder to get this quick snapshot.
8. Integration with Other Systems
It’s likely you’re using some kind of virtual assistance in your business. For example, do you use an online booking system to create appointments with your clients?
Many electronic billing systems will integrate with other artificial intelligence. This integration can create seamless systems in your business.
Benefits of integration include:
- Data accessibility
- Improved communication
- More productivity
- More growth potential
These are all great reasons to start using integration in your business. Electronic billing is a key way to start taking advantage of this way of the future.
9. Check Information on the Fly
You’re a busy business owner. And your systems need to take that into account.
An electronic billing system will help you do this by creating cloud-based access to your business.
This means you can check things like invoices, notifications, and analytics right from your smartphone or laptop.
As your business continues to grow, this can help you always stay tuned into what’s going on back at the office. If you have to go off-site in order to provide services, it’s also a great way to ensure you have access to important information on-site.
10. Keep Track of Leads for Follow Up
It’s critical in your business to follow up with leads. You can use an electronic billing system to your advantage in order to do so.
Your system can give you insights into your client’s behavior, making it easier to upsell them.
For example, it could look something like this:
- You have an e-book with top 100 digital marketing tips for the year.
- You identify over half of the people who purchase it also buy your digital marketing strategy assessment because you see your electronic billing.
You could then set up a tripwire when people purchase your e-book for a limited time offer for your marketing strategy.
These are the type of insights your electronic billing system can give you to use for your strategy.
It’s also a place where all of your client’s contact information, billing information, and history will be stored. This makes it easy for you to instantly access relevant information when following up with someone.
Your secretary tells you she has a Mr. Gibbons on the phone. You pull up his purchase history from your electronic billing before answering.
Now you’re empowered with information for your conversation and can easily turn it into an informed sales call. For example, if you see he purchased a specific product that your client’s usually purchased before a service, you could upsell the service.
Electronic Billing Conclusions
There are a ton of reasons to implement electronic billing in your business, from simple convenience to getting to know your customer’s purchasing behavior.
More than anything, it’s a great way to start implementing an integrated system for your business. The future of technology is pushing more and more businesses in this direction.
Don’t get left behind!
And for more business tips, check out our work-life tips in the blog here.