You’ve probably had someone tell you that every generation is smarter than the last. While this is a commonly debated issue, the logic certainly makes a bit of sense. After all, science is smarter than it has ever been. We know more about past eras and civilizations than ever. And technology has allowed us to be more efficient than it ever has in the past.
One thing that our world can do better than the previous one is simply pay people more efficiently. Yes, the process of payroll and invoicing has been streamlined due to technology. Yes, there are new options in the job market that were never there in the past. However, the tools and resources are only half of the equation in today’s era.
Building a system to please and benefit both workers and employers may never be perfect. But you, as the employer or the designer of the system, do have a responsibility to try. Take your time and consider the following when trying to figure out the perfect billing and invoicing system for your business. Hopefully, you can come up with something everyone is happy with.
Efficiency
It’s very common to use e-billing for invoicing, especially when working with remote employees or freelancers. Due to the power of the internet, everything in these processes can be efficient and updated in real time, despite workers and employers being on different sides of the world. However, while efficiency and time are often correlated, they’re not the same thing. Time is only one benefit of online invoicing.
Online invoicing helps to eliminate in-person miscommunications as well. By combining hard numbers with being able to send information directly from one digital device to another, it’s harder for things to get lost. Especially with the emergence of the cloud in today’s world, the most important information is typically accessible from anywhere. You can invoice customers and collect payments from nearly any corner of the world.
The efficiency that online invoicing brings to the business world may also benefit the company’s bank account as well. See, online invoicing is the most cost–effective invoicing method in the modern day and age. By cutting out the middlemen, you will save money on materials, processing, and transportation of documents. Technology is supposed to reduce the hassle and streamline our everyday communications. Online invoicing accomplishes that.
Variations
It’s important that your system can handle and sift through not only different forms of invoicing but invoices with different purposes also. Due.com reports that there are actually six different kinds of invoices which serves to prove this point. Invoices vary in how many people are involved, what stages of a job they’re given at, and of course, format. This widely opens up the possibilities of how an invoice may operate or be used.
For instance, the point at which an invoice is issued in a project changes due to the agreement. An invoice can be given or paid up front, after the fact, or in segments during a project. All of these can be done through the same systems using online invoicing and software that’s catered to handle these different points in the time of a project.
Different players in a project may receive or give different kinds of invoices at all different times as well. For instance, a marketing manager, project manager, and project designer may be paid at different times, especially if they’re being freelanced or outsourced from the initiator of a campaign or project. Additionally, some of the jobs will be one time gigs while others are recurring, and that will be clearly stated in the invoice agreement between the client and those who are hired. Online invoicing can handle all of these variations with the click of a mouse and the right, most organized software.
Good for Everyone
Part of streamlining the billing process is focusing on UX, or user experience. Whether you’re charging someone or being charged, the idea is that with a few clicks, someone may be paid with no hassle. That said, when you’re putting together your payment systems, think about it from the other side of the work exchange. The way to an ideal system is aiming for a process that works for everyone.
Is the person being paid going to be able to smoothly receive or sign off on their money? Are you able to send or request an invoice with all of the correct pay information, including that of any personal information, hours worked, and proper accounting? Are taxes and legalities taken into mind in all exchanges? It’s best to build and use an online system that is able to take all of those things into account.
To have the most efficient invoicing methods, you will want to define your payment methods. But with online invoicing, you can go a step farther and accept as many payment methods as possible. Online payment methods can vary from PayPal to Venmo, Zoho to Quickbooks, and many more. If you’re developing the software and program, then it’s your job to do what it takes in your power to make this possible.
Stipulations
When creating an invoicing system that will benefit both the employer and the worker, the stipulations of work agreement have to be factorable. For instance, it’s best to have everything on one check, but what if the worker in mind is a freelancer and did multiple jobs? Is any sort of commission being added to the final pay? Additionally, how automated is the billing process? Lastly, can you set it up to work in conjunction with your accounting and payroll software?
Because these stipulations matter so much, in choosing software it may be smart to test drive multiple systems. Additionally, you could speak with a financial analyst to see what the best invoicing practices are since they are trained to advise on these microeconomic decisions. It’s never a bad idea to get a second opinion, after all. While you may choose to go in a different direction, it’s a good idea to stay informed.
The bottom line, however, is if you can get your invoicing software to work with your payroll and accounting software, that’s the ultimate streamlining goal. Ultimately, a system should be set up to be as easy as possible and indisputable for all involved. So look hard into the what invoicing software you’re using. Because with the power of online invoicing, there’s a lot of potential at your fingertips.
Your Experience
Of course, analyzing the data always changes with personal experience. Maybe you’ve tried all of the different online invoicing services and prefer the old-fashioned way of doing things — by paper. Or, you’ve had great experiences with some software, and not so much with others. Even maybe you have to use multiple apps to do all of your invoicing. Obviously, there’re benefits and efficiency to online invoicing, but your specific experience may fall on a spectrum between positive and negative.
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