Last editedMar 20233 min read
How much time does your business spend on invoicing? If you’re still manually processing invoices, it could be more hours than necessary. With cloud-based invoice management, you’ll be able to streamline the payment cycle and reduce hours spent sitting at your desk. Scalable, flexible, and budget-friendly, today’s cloud-based invoicing software is well worth a look.
Manual vs cloud-based invoice processing
Think about all the steps involved with manual invoice processing. You need to generate a unique invoice number, list all goods and services provided, and verify all information with existing receipts and purchase orders. Once you’ve sent your invoice to a customer, you then need to follow up to receive payment on time.
With cloud-based invoice processing, these steps are automated and streamlined. There’s less chance of human error, because the system automatically scans your transactions to input the correct data into professional templates. Invoices and payments are digitally tracked to save time and reduce payment delays.
What are the advantages of cloud-based invoicing?
We’ve just touched on a few of the key advantages of cloud-based invoicing in comparison to manual processing. Here are a few more reasons to consider a cloud-based, automated system.
Accessibility from anywhere: Give your team access to invoicing from anywhere in the world. Remote workers can sign in from home or while they’re away to keep payments up to date.
Generate accurate invoices: Using stored client details and templates, cloud-based systems can generate invoices in a matter of minutes. Invoice numbers, payment terms, and client information is verified in the system for accuracy.
Frictionless payments: With automated online invoicing, it’s easy to embed a link right into the invoice so the client only needs to click once to make their payment. This in turn improves your cash flow and frees time wasted on chasing late payments.
Cost savings: Cloud computing brings down costs due to a move away from time-consuming manual processing. Storing digital files in the cloud means you don’t have to pay for in-house server storage, and electronic delivery reduces postal and printing fees.
Scalable services: Your business is constantly evolving, and cloud-based services can scale with you as you grow. Most cloud-based invoicing software comes with tiered pricing and service levels so you can scale up or down depending on business conditions.
What is the best cloud-based invoicing software?
There are multiple benefits, but not all software packages offer the same features. Here are a few of the most comprehensive options when it comes to cloud-based invoice processing systems.
1. Xero is a cloud-based general accounting platform. In addition to helping businesses tackle payroll and inventory tasks, it also offers full invoicing capabilities. You can track time on projects, automatically generate invoices, and access 24/7 live chat support.
2. Chargebee is known for its subscription payment services, with a selection of free and paid plans to help you get started. In addition to subscription and customer relationship management, it also covers all aspects of subscription billing, invoice management, and financial reporting.
3. Zuora is another subscription billing platform that’s ideal for cloud-based invoice management. It’s best suited for larger companies due to the extensive list of features it provides. This includes everything from invoice tracking and payment collection to revenue recognition and data analysis. If you’re looking for a premium billing platform all based in the cloud. Zuora is a great fit.
4. Zoho Books fits into the cloud-based library of Zoho products. You can use it on its own or integrate it with other Zoho products to support all aspects of your business. At the base level, it comes with automated invoicing, adjustable billing schedules, and custom invoice templates.
Is cloud-based invoice management right for you?
The future of invoice management points to automation as standard. Choosing cloud-based invoicing software puts you ahead of the curve. You’ll reap all the benefits of going paperless, while saving time and money in comparison to manual processing. With fewer processing expenses, you’ll enjoy faster payment cycles and improved customer satisfaction. Furthermore, you’ll keep your sensitive customer information safely stowed away in the cloud.
For all these reasons, it’s worth considering cloud-based invoice management with tools that integrate neatly into your existing systems. GoCardless partners with all software mentioned in this guide, as well as many other accounting integrations. It allows for automatic reconciliation of invoice payments in the cloud to keep your finances in order. Manage invoices and payments from a central dashboard for maximum convenience on the go.
We can help
GoCardless is a global payments solution that helps you automate payment collection, cutting down on the amount of financial admin your team needs to deal with. Find out how GoCardless can help you with one-off or recurring payments.