Many businesses have been wasting valuable time dealing with invoices since lockdown restrictions were eased, to the point they feel overwhelmed.
Opening invoices, whether sent via email or through the post, filing them into the correct folder, and reconciling them can be laborious.
Cloud accounting software can really make this task a breeze, though.
Gone are the days when you had to separate the paperwork into different files ready to be colour-coded before being entered into a computer.
Now, cloud accounting software products made by the likes of Xero can do it all for you and really make a difference within your business.
Issuing invoices & reminders
The best invoicing software and billing solutions enable you to manage your business’s income and expenditure, making it easier to track costs, profits, and tax liabilities.
There are plenty of options on the market, too. Some allow you to try before you buy a stand-alone package; others work as part of a wider cloud accounting software package.
As far as the process goes, you simply log into your chosen cloud invoicing provider and go from there. You can issue invoices and set up reminders to help you stay on top of late payments without stressing about them.
Most providers offer the choice of simple templates and automated reminders after the payment terms have expired, while others include payments in various currencies or integrate with payment gateways.
Receiving payments
Every time you send out an invoice via your cloud accounting software, your customers or clients will receive your business bank account details to pay quickly and easily.
Some apps even offer your customers access to device-based digital wallets, enabling them to submit secure payments via gateways like PayPal, ApplePay, or Samsung Pay on their smartphones.
This can go a long way towards eradicating late payments when clients use this properly, boosting your business’s cashflow in the process.
Bank reconciliation
When you create an invoice for an order in your cloud invoicing software, it will need to be reconciled against the payment when it’s received. Until the received payment is reconciled, a false impression is created.
This bank reconciliation process is to ensure your accounting software’s ledger matches with what your bank says. If the two balances match, you’ve successfully reconciled.
The easiest way to do this is to connect your business bank account to your cloud invoicing software, so any payments you receive from clients go straight into the bank account in real-time.
What you see in your accounting software should match what’s in your business bank account. Having a real-time picture of your cashflow enables you to make informed decisions to help grow your business.
Get in touch
If you’re looking to introduce some Artificial Intelligence into your business but don’t know where to start, Atreus can take you through your cloud accounting options and offer to teach you the ropes. Email us at info@atreusaccountants.co.uk or call us on 01202 052276 to find out more.