The Latest Trends in Invoicing Software Technology
Since the first electronic invoice was sent thirty years ago through an electronic data interchange (EDI), billing has improved by leaps and bounds. Accordingly, online solutions are the name of the invoicing game today.
Here are the top benefits of e-invoicing:
- Streamlining accounting processes
- Getting paid faster
- Accessing and managing invoices from anywhere, anytime
- Branding and relationship creation
- Saving money otherwise spent on hiring professionals
Moreover, e-invoicing can prevent invoice fraud, data loss, and manual data entry errors. Read on to uncover the four latest and upcoming trends in the field of billing software.
Artificial Intelligence (AI)
Artificial intelligence is a science that enables machines to simulate human intelligence using data. Over 50% of businesses already use machine intelligence according to a recent Forbes report. AI is also used in the world of online invoicing, and will develop even further to include innovations like predictive spending patterns and expenditure auditing.
Here are three benefits AI is set to bring to the online accounting scene:
Automation
Automation eliminates repetitive manual tasks while saving time and resources, which in turn improves your cash flow. Sending automatic payment reminders before and after the due dates helps you get paid quickly, while automation helps with organizing recurring billing.
Detecting Fraud
With the help of automation, AI will be able to recognize fraud by examining entries such as customer information, invoice details, and banking inputs in invoices. It can help you protect confidential payment records from hackers.
Eliminating Manual Errors
Mistakes on business invoices can result in economic and legal repercussions. With AI, you can do flawless invoice extraction on top of effortless pattern recognition to compile accounting data free of errors. AI can also be used to analyze past payment records so that it can detect inconsistencies such as wrong invoice numbers, discordant payments and more.
Cloud Technology
With upcoming technologies set to revolutionize digital accounting as we know it, cloud invoicing software is undoubtedly the leading one. It is a paperless and environmentally-friendly billing method that streamlines cash flow and runs accounting processes efficiently. The benefits of these solutions are multifold and elaborated on below.
Accessibility Of Cloud Accounting
Cloud accounting is ideal for making your payment records easily accessible from anywhere. This technology keeps you updated in real time besides helping during tax audits, insurance claims, and banking discrepancies.
Cloud Billing Saves Money
With the world making the switch from physical to digital billing, businesses will save an estimated 60% to 80% on accounting costs.
Blockchain
This decentralized network architecture is expected to be the biggest disrupter for online accounting. It solves multiple challenges for electronic invoicing such as increasing transparency, eliminating errors and detecting fraud, and employing an immutable ledger system that tracks every action and is tamper-proof.
There are several noteworthy benefits of deploying blockchain when exploring online invoicing solutions.
Security & Anti-Fraud By Integrating Blockchain
Generating permanently immutable transaction records makes blockchain the most secure upcoming technology in e-billing. It eliminates middlemen so as to create automatic payments without disputes or hassles. These records cannot be forged or destroyed, therefore you are automatically protected from data loss while having your transactions fully validated.
Flawless Accuracy in Accounting
Besides managing accounts, blockchain technology can help maintain a transparent ledger without errors or guesswork. Real-time information exchange via blockchain billing can significantly reduce the time to get paid. As a result, there will be fewer disputes and improved cash flow management.
Blockchain for Invoice Factoring
Businesses can generate validated expense records for mitigating the hassles of credit check processes involved in invoice factoring. Blockchain makes it easy for lenders to assess the risk by programming automatic detection of new invoices.
Mobile Invoicing
With convenience being the rising hallmark of accounting, dealing with invoices while on-the-go is the best choice for many, from a variety of invoice apps. You can send invoices from anywhere, and clients can pay directly from their phones.
The advantages include:
- No need to be at the office to send e-invoices
- Easy access to your business transactions in one place
- Saved time and hassle
- Clients can pay you faster and with ease
Summing Up
Alongside rapidly growing technology, billing processes are increasingly automated, accessible, accurate, and more secure than ever before. Countries like Sweden, Australia, the United States, and Brazil have already made e-billing mandatory for government transactions. Within the next five years, you can probably expect standardization and global acceptance of e-invoicing as the new norm.
