Businesses offering services often experience issues with cash flow - especially smaller firms and start-ups. This is because, unlike retailers that take payment before delivering the product, service-based businesses 'deliver' and then send their invoice. It may be paid straight away, next month, or even later - and sometimes not at all.
While debt collection practices can ensure you receive what you're owed down the line, that doesn't help if you have bills to pay right now. However, thanks to new technology, service-based businesses can avoid late payments altogether - as well as all sorts of other invoicing headaches.
Here's how integrated payment solutions can help streamline your small business and ultimately improve cash flow.
Save employee time and effort
One of the greatest advantages of integrated payments is the ability to save time spent reconciling invoices. Usually, client credit card information needs to be entered manually into your accounting software - which is seriously time-consuming.
The process looks similar to this:
- client information is stored in your CRM software;
- the company performs the service requested;
- the invoice is created and sent out;
- payment information is taken by the CRM at the time of payment;
- this payment information is manually transcribed from CRM to accounting software.
However, with integrated payment software like OpenEdge, client payment information is automatically ported across from your CRM. This saves time and effort, allowing you and your employees to focus on other things.
Reduce manual errors
Entering transactions manually into accounting software can be not only time-consuming, but also tedious. This makes the risk of errors happening that much greater. Common mistakes include incorrect details, invoices that don't match the quote, and lost, damaged or misfiled documents.
As invoices aren't typically reconciled until the end of the month, mistakes can cause delays in payment from clients, or even late payment of your own bills.
Integrated payment solutions offer businesses the ability to automatically record transactions in their accounting software - reducing the number of errors and helping to identify any slip-ups before they cause problems.
Keep costs to a minimum
If your small business is like most, your employees wear several hats and perform whichever tasks are needed. If you currently have valuable staff helping out with a heavy accounting workload, automation may mean you can reassign them to other departments - allowing them to focus on the areas where they shine best.
What's more, when mistakes on invoices do slip through, they need to be fixed right away. This often means wasting time and effort fixing the mistake and ensuring your business receives the correct payment while managing the client relationship.
With integrated payment solutions reducing the risk of errors, there will naturally be a reduction in personnel time needed to fix mistakes, as well as fewer delayed payments.
Take control of your payments
Taking control and streamlining how your service-based small firm handles invoices can bring your business to the next level.
By automating your payment process with integrated payments, you can reduce the painful issues associated with manual invoicing - allowing you to avoid cash flow wobbles, pay bills on time, and focus on growth and expansion.
Copyright 2019. Sponsored post by openedgepayment.com