Accuracy is everything in billing and bookkeeping. It is critical to stay abreast with who owes how much or you might never receive payment.
To some people the wealth of software availability is confusing. Of late, there are bewildering numbers of financial accounting programs, and then there are dedicated cloud invoicing software, develop to handle different aspects of regular invoicing. Like others, if you too feel flabbergasted by the sheer options of invoicing solutions available, you would be pleased to know that small businesses only need a web-based program.
Whether your approach is to send out email invoices or you use cloud invoicing software or both, it is the right way of simplifying the process. The software helps you to calculate fees, track payment, and some professional invoices with an option of online payment.
Do You Need Cloud Invoicing Software?
Any small, medium and large business need invoicing software. If you want to make a transition, the first choice is between accounting software and invoicing software. Though both may sound similar, differences exist.
Accounting software comprises certain invoicing capabilities. However, advanced invoicing features may not be present in accounting programs, like auto-billing. If you find affordable accounting software that also meets invoicing needs, you may not need solo invoicing software.
Some invoicing software is also available for free. These are great options, typically for sole proprietors, micro-businesses, and freelancers.
What Is Cloud?
Software available in today’s market is of two types – on-premise software (installed on your hard drive) and online software (cloud-based). Cloud-based implies that data would be stored on the cloud, across remote servers, which is easily accessible from computers, laptops, or any other device when the user goes online.
Instead of going into the nitty-gritty of how this works, you only need to understand what it does. Data stored in the cloud is encrypted and secure. Moreover, since data is stored in your PC, there’s the least risk of losing it.
When compared to installed software, which usually comes with an annual fee, cloud invoicing software offers service. Cloud-based software services come with a recurrent charge, monthly/quarterly/annually.
Benefits of Cloud Invoicing Software
Cloud invoicing comes with plenty of benefits as noted below:
- Faster Payment: When invoices are sent on time, you receive faster payment. Smart cloud-based invoicing software allows users to schedule invoices and send them on time, which streamlines the process and makes it faster. In addition, most of these software allows users to collect payments online through services like Stripe or PayPal.
- More Organized: Software leaves no room for errors. As a result, there are the least chances of late payments or missed payment unless data input is faulty. Using software also spared you from remembering billing tasks as these are executed automatically.
- Professional Look: Invoicing software features professional invoice templates. You can customize it with the business name and design logo for a real feel.
- Automatic Payment Collection: If you are offering a subscription or a membership-based plan, invoicing software would allow you to collect monthly or periodic payments.
- Perfect Billing Statements: As there is negligible room for errors, accuracy is guaranteed. You would get accurate statements without overcharging customers or undercharging and missing out on major revenue.
In addition, cloud invoicing allows you to send invoices anywhere, with data encryption and facilitates audit protection.