How Does Automatic Billing Work?

A systematic and automated billing mechanism can do wonders for your business finances. The ability to generate and process invoices immediately often leads to a positive cash-flow and keeps business machinery rolling smoothly. Whether you are an entrepreneur or a small business owner, it is more than likely that your business operates on recurring invoices dispatched to customers. 

If this is becoming too time-consuming and costly in terms of resources, you should consider switching to automated invoices. Still wondering how automatic payments work? Read on to find out more.

What Does The Process Look Like?

Broadly speaking, there are two ways to create invoices. Traditionally, the AP staff generates paper-based invoices by manually entering the required data and statistics.  However, the process is cumbersome, repetitive, and financially regressive.

Fortunately, automated billing frees you from this hassle. When you choose to automate the billing process, you’ll be required to integrate billing software with your accounts system. This allows you to generate and process invoices at the intervals of your choice. 

If you are supplying services regularly and have the payment amount agreed upon, you can set your billing system to automatically generate the invoices weekly, monthly, quarterly, or annually. For subscription-based businesses, invoices can  be issued to every customer that opts for your monthly plan. Additionally, customers often benefit from this solution thanks to automated bill payment features available from some invoicing solutions.

Automatic Invoicing Considerations

• With automatic billing, invoicing becomes extremely time effective. For businesses that are required to dispatch multiple invoices at different time intervals, traditional invoices can result in an extensive amount of manual labor. This prevents your staff from efficiently utilizing their time in works that are more productive
• Along with saving time, you automatically start reducing costs. With more time available, your employees can focus more resources on aspects that are important for scalability and growth
• A combination of manual errors in when creating and dispatching invoices can aggravate and delay invoice payment. Since data is fed automatically, the likelihood of human-errors are largely mitigated. Often, companies forget to send invoices on time or choose to delay payment for several reasons. With automatic bill payment and invoicing, the software can take over this effort on your behalf
• Creating an invoice that is prompt and error-free increases your chances of getting paid on time. Sending your clients invoices regularly helps to sustain a trusted working relationship that keeps both parties satisfied. Clients know when to expect the invoices and thanks to regular issuance, are more conditioned to meet deadlines

Top Automatic Billing Vendors

If you are seeking a billing vendor for AP and AR automation, be sure to consider the following providers:

• QuickBooks Online - QuickBooks Online prides itself on making accounting ‘seriously easy’ for small businesses 
  • Its prominent features include device applicability and customization
  • The invoicing software can operate on your PC, Mac, tablet and is also mobile-friendly
  • Users have the option to create custom quotes and invoices as they see fit
  • Integrate the solution with your accounting system to create a centralized platform that also yields key business insights
  • Increase collaboration and preparation for tax season
• Invoice2go - As one of the best invoicing software solutions, Invoice2go offers an incredible partnership range that makes online payment a lot easier. 
  • Invoice2go has partnered with PayPal, Xero, Stripe, and other automated payment platforms, making it easier to transact online with customers who are comfortable with a particular mode of payment
  • The solution provides valuable insights due to its fast expense and invoice tracking system
  • You are instantly informed of which invoices are viewed by the clients and can set up automatic reminders to ensure that clients pay on time
• Tipalti - A global payables automation platform, Tipalti increases its functionality alongside your business’ scalability.
  • The billing software provides increased synchronization and the ability to accelerate the financial close by a significant margin
  • Additional software features include reduced compliance risks, top-notch supplier management, global payouts, and multi-entity payables
• FreshBooks - FreshBooks is another billing software solution that streamlines and synchronizes invoice processing with automatic payment. 
  • Solution offers a one-click payment system and an overview dashboard that lends quick insights into the accounts payables and receivables status
  • The software supports multiple currencies and languages making it extremely convenient for across-the-border clients

Conclusion

Traditional paper-based invoicing is proving more and more regressive for small businesses. Entrepreneurs in search of quick scalability must employ system automation wherever possible. Accordingly, automatic billing can help you run leaner operations while eliminating laborious invoicing procedures. Furthermore, thanks to the integrated ability to generate financial insights, you can make better decisions for your business when embracing these intelligent invoicing solutions.