When it comes to invoicing your clients, you have a choice. Yet, is there really a difference between a physical invoice and an electronic invoice? Aside from the obvious difference between a piece of paper that is printed out and sent in the mail and something generated and sent out online, there are some key differences.
Electronic Invoices May Help You Get Paid Faster
Electronic invoices are convenient for your clients and they’re convenient for you. There’s no worrying about it getting lost in the mail. There’s no remembering to buy stamps. The invoice or a link to the invoice is sent to the client’s email. They’re able to follow a link to pay their invoice through the website.
With a traditional invoice, the entire process could take as long as 14 days. If the client writes a check, you can tack on another three to ten days. Can you really wait close to a month for the payment to clear? Electronic invoices are usually paid by the client faster and ACH, debit, or credit cards post the same day or within five days.
AR Records Are Automatically Updated
When clients pay online, most AR systems are automatically updated. This keeps your AR system up-to-date and your financial reports are more accurate. The payment information is also stored in a secured database. To learn more about how quickly your AR software of choice would be updated, consult the user guide.
Electronic Invoices Save Your Business Money
If you’re looking for a way to save money for your business, switching to electronic invoices can help. You’ll save on paper products, stamps, and (of course) time. As stamps continue to go up in price, it’s important to control the amount of money that’s spent on postal supplies. The best way to do this is to cut out the unnecessary use of the service. Capitalizing on electronic invoices can help you do just that. In fact, you’ll probably spend less each month on the cost of your AR app and the costs that your business may incur using PayPal Business or another online payment portal.
Electronic Invoices Are Faster to Send
One important concept in AR is in the timing of invoices. Clients need to receive their invoices when they expect to receive them. Depending on how your services are delivered, you may send out invoices at the end of a day, weekly, bi-weekly, or even monthly. So, it’s important that your invoices go out on time. Paper invoices take time to prepare. If you don’t have a person dedicated to AR, you may be searching for time at the end of each day to finish your invoices. The problem? You may not have enough time. Invoices may not be sent out on time.
With electronic invoices, you can hold on to the draft for the billing period and make time each day to add any necessary entries. When it’s time to send out the invoice, it’s usually just one or two clicks of the mouse that sends it out to the client. There’s no searching for time to ensure that invoices go out on time.
Clients ARM – Your Partner in the Digital Age
Clients ARM provides necessary business management services from a remote U.S. location. With more than 30 years of experience, you get the help that you need at a price that you’ll love. To learn how Clients ARM can help you, schedule your free consultation.
