Last editedNov 20222 min read
Issuing multiple invoices in quick succession is not only frustrating, but can lead to a greater chance of billing errors. Today’s invoicing software can solve the problem with consolidated billing, preventing your customers from drowning in paperwork. Consolidating invoices into a single document also helps reduce the chance of missing payments. So, what is consolidated billing and how does it work?
What is consolidated billing?
Particularly for businesses offering subscription services, it’s not uncommon for a single customer to have multiple subscriptions. Raising a separate invoice for each subscription or small purchase leads to redundant paperwork. With multiple bills to chase up on, it’s more likely that invoices will go missing in the process. Consolidated billing creates a combined invoice for multiple transactions. It consolidates purchases for a specific timeframe and presents them in a single invoice to be sent through to your customer.
What are the benefits of consolidated billing?
There are numerous benefits to using consolidated billing services.
1. Improved efficiency – Consolidating your bills using automated invoicing software means less time spent on manual entry and a more efficient work process.
2. Better organisation – It is easier to keep track of multiple bills when they are consolidated into one invoice, plus you reduce the chances of invoices going missing.
3. Paid on time – Using a consolidated billing tool minimises the chances of payments being delayed.
4. Customer satisfaction – Your customers will appreciate a more organised billing process.
Rather than chasing up on multiple invoices, consolidated billing services combine these into a single automated document. This also makes your income more predictable for stability in cash flow.
What are the best invoice consolidation tools?
There’s a multitude of invoicing software on the market, but which tools offer invoice consolidation as a feature? Here are our top five choices.
1. Xero
Xero offers an all-in-one accounting and invoicing software package. Businesses can create custom invoices and track payments from a central dashboard. Bulk invoicing is a feature of the system, allowing businesses to consolidate multiple recurring invoices and automatically issue them as needed. It integrates easily with multiple third-party apps, providing payment options and automated financial reports.
2. Tide
Another popular option is Tide, a financial platform designed for small businesses. Tide not only offers billing consolidation, but also includes a business bank account, accounting software integration and invoice tracking capabilities. Organise your consolidated billing by specific categories to keep finances on track.
3. QuickBooks
Intuit QuickBooks is a long-trusted accounting app, but it’s also handy for billing and invoicing. Whether you’re a self-employed freelancer or small business owner, use the app’s invoice consolidation tools to keep your invoicing streamlined and simple. It automatically syncs data across devices and offers an array of templates.
4. Zoho Invoice
Although it’s designed to complement Zoho’s accounting software, Zoho Invoice stands alone as a useful invoice consolidation tool. Create custom invoices with your business’s branding and logo, automate recurring invoices and consolidate multiple bills into one. Another key feature offered by Zoho is the ability to convert estimates into invoices, tracking a project from start to finish. Zoho integrates with numerous payment gateways to facilitate payments as well.
5. Invoiced
While some of the tools on this list are all-in-one solutions, Invoiced focuses squarely on invoice generation. It offers a complex set of tools to choose from, including built-in templates that let you customise your invoices as needed. Consolidate multiple purchases into a single user-friendly format to suit your customers. Invoiced also supports subscription billing, giving customers control over their own renewal and payments schedule. Like Zoho Invoice, Invoiced lets you convert estimates into invoices with a few clicks.
When the time comes to collect payment, GoCardless integrates with all the invoice consolidation tools mentioned above as well as numerous other partners. This makes it a great choice for streamlined payments, both recurring and one-time.
We can help
Traditional billing provides the merchant with no control or visibility over when the payment is made, making payments more likely to be late which causes cash flow issues and stress. GoCardless gives you control to pull payments from payers directly, giving you visibility on the payment status via the GoCardless dashboard.
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.
