Cloud invoicing software—also known as e-invoicing—hosts important data on a secure digital cloud. This allows businesses to compile and send invoices to clients automatically.
Due to the Covid-19 pandemic, many businesses have had to look for creative yet efficient ways of sending and receiving invoices. This unprecedented global crisis has given birth to a new era of B2B transactions.
The cloud has become a critical part of business infrastructure. It’s able to automate and refine processes that traditionally would have consumed more time and energy from employees.
Cloud invoicing brings with it a wide variety of benefits and advantages. We’re going to dive right in and explain what these are.
The Advantages Of Cloud Invoicing
Because clouds exist in a digital sphere, they’re far more programmed for improved speed, efficiency, and accuracy than manual methods allow for.
Even small businesses can get weighed down by the paperwork involved in continuously sending invoices. But a cloud-centered admin strategy can help all business types minimize their efforts and maximize their successes.
Digital clouds act as a holding space for all relevant business data that is completely organized and secure. The software behind clouds is also programmed to complete specific tasks, such as composing individual invoices and sending them without any direct input from employees.
Cloud invoices do not require any special physical materials and can be easily shared between remote workers. Flexible, accurate, and highly secure, all businesses can benefit from cloud invoicing software.
1. Increases Process Efficiency
Contactless payments are much faster and more efficient than other payment methods. Check payments are expensive and prone to time consumption, which can delay a payment from getting made successfully. When it comes to B2B payments, cloud invoicing is a clear winner.
Particularly for businesses that regularly receive shipments or deliveries, cloud invoicing can streamline the payment process and eliminate the need for extra admin. An automated invoicing system only needs to be set up once before performing on its own.
Electronic invoicing also prompts businesses to be more environmentally conscious. The paper that goes into billing gets eliminated as businesses move to a digital-based billing system. This reduces waste dramatically.
2. Improves Security And Control
The security measures surrounding cloud-based technology have only accelerated in recent years. Yes, it means giving up some control to the service providers. But they will have made security a top priority for your business’s data.
Clouds are protected with layers of encryptions that prevent hackers from getting inside, and many have customizable security measures that your business can decide on its own.
Passwords contribute additional security. But all in all, a cloud-based invoicing system is considered much safer than manual methods of data hosting. As the number of cyber-attacks in 2021 continue to increase, no business can afford to take risks.
3. Better Cash Flow Management
Cash flow management and bookkeeping are a thorn in the side of many hardworking businesses. Going paperless can actually increase your cash flow and make managing finances a significantly smoother and less time consumptive process.
Many cloud invoicing software programs offer additional streamlining services like a “pay now” link option added to all outgoing invoices, as well as follow-up reminders to clients who have outstanding payments due. The easier you make it for clients to pay you, the faster they will do so. For instance, Flowlu offers native integrations with such payment gateways as PayPal, Stripe, Square and CloudPayments to let your customers pay right from the invoice. You can also send out professional payment reminders and “Thank You for Your Payment” emails.
4. Improves Accuracy
Manual or paper-based invoicing systems rely on the human brain, which is prone to subconscious error. One small miscalculation can cause chaos, and many avoidable mistakes get made without intention.
A cloud-based invoice system, on the other hand, is surgically precise and mathematically accurate every time. Once the data is entered, the system can sort, store, and send out invoices that are accurate and reliable every time.
5. Customization And Flexibility
When setting up a cloud invoicing system for your business, you can customize the upload and billing process to suit your exact needs. You can have control over which team members have access to what information, and program automated invoices to the style and standard of your preference.
Businesses can also set up custom tax behaviors, configure trial periods, create complex invoicing terms and even automate message responses based on certain customizable triggers.
This aspect of cloud invoicing allows businesses a much higher level of flexibility than a manual invoicing process would allow. It is particularly advantageous for companies that deal with multiple different services that require customized responses and terms.
6. Reduced Physical Contact
Despite progressions in the battle against Covid-19, there is still a reasonable weariness around physical interactions. Many people are taking precautions with manual methods of payment and billing to reduce the spread of the virus.
Cloud-based invoicing could not have emerged at a better time, facilitating international invoice processes from the safety and security of a remote position. With vaccines still rolling out around the world and many people still contracting Covid-19, cloud invoicing could well be the new normal for businesses.
7. Increased Client Satisfaction
Another element of cloud invoicing that could contribute to this system’s continuation is the fact that it keeps customers smiling and happy. Whether they are coming in or going out, everyone prefers bills to arrive promptly and without complication.
Businesses can improve their client satisfaction rate with cloud-based invoicing. The automation aspect prevents delays from occurring, and there is no need for employees to send out reams of paper each month when they could be focusing on more important tasks.
Cloud Invoicing—Fad Or Future Norm?
When it comes down to it, nobody can know what the future will hold. However, cloud-based invoicing has proven to be an extremely useful and powerful tool for businesses around the world who want to keep standards high. No matter how much damage the pandemic caused.
Even once Covid-19 has dissipated and there is no longer a need for social distancing, there’s a strong likelihood that businesses will have adapted to this new and improved way of billing. Especially considering the number of benefits that cloud invoicing offers.