Paper billing is costly in the long run, time-consuming, and prone to errors. Fortunately, modern digital invoicing solutions have totally removed the mistakes and effort from the billing process, resulting in cost-effective and streamlined operations. But just how do you go about leaving those spreadsheets and paper receipts behind once and for all in favor of today’s tech-savvy, electronic alternatives?
1. Invest in the right software
You probably won’t be surprised to learn that you are by far not the first company wanting to modernize its invoicing procedures. The good news for you is that the market has responded to this demand with a wide array of invoicing software options. Your challenge is to choose the package that is best for your needs.
Your first job is to take a look at your business. Consider your company’s size and invoicing volume, as well as any requirements that you can’t do without. These could include integrations with accounting software, accepting international currencies, or taking recurring invoices, among others.
Next, do your homework, finding software options that match the requirements that you identified. Many packages offer free trials, so don’t be shy about giving several a test run before you buy.
Throughout this process, evaluate the features on offer, deciding what you absolutely must have as well as tools that are either mildly interesting or not necessary at all. Options include customizable templates, automated overdue payment reminders, internet options if you accept online payments, reporting and analytics tools, and integration with other business systems.
2. Organize your data and processes
Create a single database, review your current invoicing solutions process, and set up your new software package.
In order for a modern digital inventory management system to function effectively, it is essential that you create a single database. This repository should contain all customer names, contact details, and payment terms. The system will use this to create accurate bills.
Before you populate your new vault with details, take a careful look at the antiquated system that you have been using up until this point. After reviewing how you create, send, and track your invoices, you will be in an excellent position to identify any problem areas that a new protocol could improve.
Only after doing this can you configure your new software. Start by importing your product catalog and client list. Then populate the system with company details and tax settings, and configure your payment gateway.
3. Let your clients know about the change
Even though your new invoicing system will operate behind the scenes, customers should still be informed in advance that there will be changes in your billing procedures. Let them know by sending a clear email that explains the upcoming transition. Take time to detail the benefits they will realize (faster delivery or a better purchasing experience, for example). Then create a simple training guide that specifies how the new system works. Focus on how someone can use the system to open an invoice or use your payment links. Also, be sure to say who they should contact if they have any questions or concerns. To that end, be sure that you are ready and able to address issues as they arise.
4. Test drive your new system
Select a small group of customers to try out your new system, gathering and acting on their feedback.
Instead of doing a universal launch, it makes better sense to introduce a few willing and reliable loyal customers to be part of a pilot program. With their help, you can identify difficulties and resolve them without affecting your entire customer base.
This pool of clients can provide you with invaluable feedback. Use it to pinpoint challenges and potential areas of confusion so that you can remove barriers proactively. As you are initiating your new system, you might consider continuing to run your legacy paper invoicing procedures. This precaution can act as a safety net in the event that any serious glitches arise.
5. Go fully digital
Set a date, update your internal procedures, phase out your current system, and continually monitor and optimize your new software.
Now that you have gone through the full range of preparation procedures, it’s time to announce the date when all invoices will be sent digitally. At the time this target arrives, every one of your staff members should be thoroughly trained in how to create, send, and track invoices. They should also understand all aspects of operating your billing software.
The time has now come to put your antiquated system to bed permanently. Make the commitment to leave those paper invoice templates and manual tracking spreadsheets behind once and for all. Whenever possible, keep the physical mailing of bills to a bare minimum.
With your new invoicing software in place, be sure to regularly monitor and optimize its processes. The software is equipped with reporting features that can quickly give you insights into crucial data, including late payment patterns and delinquent clients. These facts will enable you to have a seamless financial workflow, streamlining your operations as well as the client invoicing experience.
Once you leave your cumbersome paper invoicing system behind, your operations will become more nimble, cost-effective, and efficient. Moreover, clients will find that their purchase experience is smoother and more positive overall. As soon as you have successfully completed these five easy steps, both you and your customers will reap the rewards.
North is a leading financial technology company that builds innovative, frictionless end-to-end payment solutions designed to simplify and grow businesses of all sizes. From the front door, to the back office, the developer world, and partnerships that expand the payments landscape, North offers proactive, comprehensive merchant services, in-house processing, and more.
