5 Benefits of a Good Invoicing System for Your Small Business
| 3 minutes read
We’ve said it before, and we’ll repeat it – small business/startup entrepreneurs, we salute you. Having the passion, drive, and strength to set up your own business is no mean feat, and you know all too well it involves the constant spinning of wheels, and invoicing system for your small business is likely one of them.
So, if you’re anticipating leaping into the world of invoices, or even if you’ve already got invoicing in place and are looking for ways to improve your existing set-up, in this article, we’ll share five benefits of why invoicing can be so beneficial to your startup.
These software-based invoices keep a check on the income and expenditure of a business. Apart from that, it reviews employee productivity and the time they worked for. You might have checked the cashier’s name at the end of the invoice.
In this article, we’ll walk you through some benefits of a good invoicing system.
1. Invoice processing is essential for legal reasons
Legal matters aren’t the most exciting topic, and we also don’t want businesses to face legal trouble, but it’s necessary to talk a little about them. Although invoices are mostly issued as a better way to keep track of and receive customer payments, they also protect you in the event of a dispute.
When a customer wants to return any products, that time, an invoice is the proof of purchase. It includes the date and time. Other than this, there may be times when a customer doesn’t pay you even after multiple reminders. An invoice acts as legal proof that you had a financial agreement and can therefore be evidence if you decide to take the dispute further.
Related: Best POS Systems for Small Businesses
2. Valid invoices keep customers happy
And who doesn’t want that? If you offer invoices, you allow your customer to pay after you’ve provided a service, completed a job, etc., making their life easier. So by providing an invoice, you give your customer a convenient way to pay. It is also proof of the purchases you made.
Invoices contain information on what was purchased, when, for what price, time, and so on, and this is super helpful information for consumers both now and in the future when it comes to keeping track of their cash.
3. Invoices keep you organized
This seems obvious, but keeping an organized record of your invoices is critical. It’ll help you keep an eye on or track all your payments, pending or otherwise, so you know where you stand financially.
4. Time is money
Money is every small business owner’s ultimate goal, right?. 90percent of the startups fail due to a lack of funds.
If you adopt an efficient invoicing process such as an online system, you can send invoices quickly, freeing up extra time for the heaps of other essential jobs on your to-do list.
It’s not just sending invoices either; with the app, you’ll get notified every time you get paid. If the transaction fails and your money deducts in that case, you will get your money in the next 48 hours.
5. They’re a branding bonus
We already mentioned that customer experience and branding could play a big part in making this the best it can be.
You might not immediately think of invoices as marketing or branding, but play your cards right, and they can be just that. The key to nailing it is brand fluidity, so think about:
- Tone of voice
- Brand image
Once you’ve got all these things, make sure they flow throughout touch points with your customers, including on invoices, your website, posters, etc.
Luckily, companies have recognized the importance of automated invoice processing, and as a result, we’ve seen an increasing number of online and in-app invoicing solutions. This means that business owners can send invoices to customers in seconds.
Invoicing solutions can help you create simple and error-free invoices fast. Even better, with automation, you only have to make a template and change the amount due each time. All from your phone or laptop.
By referring to the above information using invoices for your small business could benefit your business in the long term. Invoices also help in brand promotion, and people’s perception of your brand changes positively.
Suprotik Sinha is the Content Writer with Synkrama Technologies. He writes about technologies and startups in the global enterprise space. An animal lover, Suprotik, is a postgraduate from Symbiosis Institute of Mass Communication (SIMC) Pune. He carries 6+ years of experience in Content Writing, and he also worked in mainstream broadcast media, where he worked as a Journalist with Ibn7 ( now known as News18 India) and Zee Media in Mumbai.