If you are a B2B company and only collect payments for goods or services rendered through the traditional print-and-mail, 30-day invoice, then chances are you are missing out big. Although you might be accustomed to the conventional B2B invoicing methods, times have changed with almost everyone using the more updated modern invoicing system and online invoicing. You don’t necessarily need to have a website to take advantage of online B2B invoicing.
Almost everyone can take advantage of electronic payments and invoicing. Gone are the days when only well-established and tech-savvy companies would benefit from such convenience. Any business (regardless of size) can take advantage of B2B electronic billing systems without spending more than it can afford. It is worth noting that the rules surrounding tax vary in different countries. Visit VATGlobal to learn more.
Here are four reasons you too should consider switching to online invoicing.
Benefits of Online Invoicing for Businesses
1. Fast and Prompt Payments
Online invoices cut down the time you would have to spend generating invoices manually, mailing them, and waiting for 30 days for the invoice to be cleared. It also saves you the time it would have taken to wait for the checks, deposit, and even record invoices that have to be paid. The traditional invoicing system is particularly slow and lengthy, which means you have to wait much longer for the payments to be cleared. This could make the difference between staying in business and closing down. Additionally, the traditional invoicing system could be the reason you haven’t been able to expand your business or make future investments for the same.
The online invoicing system helps speed up the process of collecting payments, thus putting money in your pockets much faster. The B2B online invoicing system generates invoices and emails them out automatically. The system can be integrated with payment processors such as BlueSnap for improved convenience in sending out and receiving payments. You can also use the ChargeLink solution which enables you to send text messages or emails to customers with a link to the customized payment page. All the customer has to do is click the embedded link with a Pay Now button on the invoice. This makes processing payments easier especially if the customer is still stuck with the traditional invoicing methods.
2. Reduce the Number of Unsuccessful Payments
There are times when a customer will send out a paper check when the deadline is near. If the client has insufficient funds in his/her account, then the check won’t clear forcing you to have to go back to them again. Embracing online invoicing can, however, help reduce the risk of unsuccessful payments from customers. The system also allows customers to make payments using their paper checks online too. Most companies however prefer electronic payments for they are faster and more convenient. For this to be possible, you need to encourage your customers to use electronic payment methods such as electronic checks, credit card payments, or business PayPal account payments.
One of the best things with electronic payments is that it notifies you almost immediately if there are not enough funds on the selected payment option. If funds are available, the payment is processed right away. In case of an error, the customer will be directed to use another payment card or method to resolve the issue almost immediately. This reduces the processing time even farther.
3. Improved Operational Efficiencies
The finance and accounting team won’t have to spend entire afternoons or the entire day processing or generating invoices, depositing checks, or sending out invoices to customers. Thanks to the B2B online invoicing system, the invoices are generated and send out automatically. The process is even more straightforward if the system is integrated into a payment processor e.g., BlueSnap. That said, online invoicing saves the business/company tons of time which can be used to handle more important tasks. It also eliminates errors that might come with manual processing and generation of invoices.
4. It Is Convenient for The Customer
Some customers will be happier making electronic payments as compared to writing a paper check. Some of them prefer to pay with a corporate card or a business credit card due to the convenience provides or to earn rewards. There are also those that aren’t authorized to write checks on the business’s behalf. Most small businesses will have the owner’s account and funds intertwined to the business. The convenience of getting to pay with a credit card is a welcome idea for many.
Some customers may prefer to share their payment information over the phone as well. For such cases, you should consider having a Virtual Terminal. The terminal allows one to make or accept payments via ACH and debit card via email, phone, and even fax. The Virtual Terminal can be used to set up payments for recurring subscriptions. This gives you more control over how payments and collected and processed.
Does the idea of B2B invoicing appeal to your business? If it does, you should take steps to have one integrated with your company. As mentioned earlier, you don’t need a website to get the system up and running.