Last editedMar 20222 min read
Improving efficiency and productivity is a top priority for many startups. While there are a number of ways to do this, introducing automated billing is a fool-proof way to streamline and fine-tune a potentially laborious element of book keeping.
Automated billing software will improve the efficiency of your startup in a number of ways. In this post we’ll guide you through exactly how.
What is an automated billing system?
An automated billing system is a type of software solution which takes charge of the various functions involved in the billing process. Without the need for much manual input or monitoring, auto billing services will generate invoices and collect payments. All in all, it helps to streamline billing processes leading to greater efficiency.
Who is automated billing software for?
Automated billing software is perfect for startups with recurring subscription models where billing involves a fixed sum charged at regular intervals, usually monthly.
How can automated billing improve productivity?
Reduces late payments and failed payments
With automated billing, startups don’t need to rely on customers to pay their invoices on time, as the payment is taken automatically. Many billing software solutions offer payment reminders too, which prepare clients for their upcoming payments, reducing the likelihood of failed or late payments. All this improves productivity insofar as it reduces the time staff spend chasing up payments and manually sending out reminders, meaning they can turn their attention to other tasks. It also drives up revenue and improves cash flow as payments are made on time.
GoCardless enables you to send invoices and bills automatically, and collect payment directly from your customer on the day it’s due. This helps save time spent on financial admin, freeing up time and resources for other tasks. In fact, in a GoCardless customer survey, it was found that using the platform means they spent only 2.6 hours per month managing late or failed payments. That’s a whole 90% faster than the 30 hour average.
Minimize human error
Even the most vigilant accounts team will make the occasional error which can cost the company time and money. Using automated billing software eliminates the margin of human error, leading to a more efficient bookkeeping strategy. In addition, as the software takes on some of the more menial tasks involved in invoicing, staff can focus their energy and focus on more important accounting tasks. This means they are less likely to make errors where it matters as they are not bogged down with more minor, fiddly undertakings.
Reducing errors will also help keep your customers happy, meaning better customer retention.
Run for longer hours
Unlike with humans, software doesn’t need to take breaks or work on any fixed schedule. This means automated billing, as well as other billing related tasks, can be performed at any time of day and will function regardless of whether there are dedicated members of staff present to not. This leads to greater productivity as staff can focus on other tasks, and resources that would be previously required for manual billing are freed up too.
Being able to carry out operations outside of normal business hours is becoming a necessity in the emerging business climate. Having the right billing software can help you keep up as a startup in a competitive arena.
We can help
GoCardless helps you automate payment collection, cutting down on the amount of admin your team needs to deal with when chasing invoices. Find out how GoCardless can help you with ad hoc payments or recurring payments.