Startups actually require invoicing software more than other companies in today’s business landscape. This is because lean teams are a central piece of the startup culture and invoicing software is the ultimate remedy for reducing admin stress by way of automated data entry and sorting. Another factor that makes invoicing software most relevant to startups is the fact that a large chunk of startup founders are typically looking for funding via private investors – this means that they need live financial data access and impeccable books for potential investors. All of this and much more can be achieved with great efficiency and convenience with invoicing software.
Invoicing software, also known as accounting software or bookkeeping software is a simple tech add-on, that can cost you as little as 40 pounds a month, but make a tremendous difference to your business in terms of profitability, professionalism, and efficiency.
Here are 8 excellent reasons why invoicing software is a do-it-now move for your startup:
Save time on data entry
Allow your team to focus on core duties that are directly linked to business profitability. Data entry is not one of those tasks. Instead, allow the tech to handle it. Invoicing software comes with optical character recognition technology that is able to extract, sort, and analyze data from bills, invoices, and receipts. Your team simply needs to upload a smartphone photo or a scan of the document that data needs to be copied from. The system returns a digital data entry that can then be copy-pasted into Excel or email or wherever required.
You can also manage with a trim accounting team or just a single accountant even as your volume of transactions increases because income and expenditure data flows directly from your business bank account to your books of accounts.
Eliminate spending linked to on-premise data security
On-premise security can be very expensive. Moreover, on-premise data is still prone to be lost by natural or manmade disasters even when you secure it. Invoicing software saves your financial data to the cloud along with the data of lots of other companies and a portion of the collective fees (although individually cost-effective) is invested towards foolproof security. You get double firewall protection by default with some brands of invoicing software, like Dext for example.
In most cases (though you should be sure to check this before you sign up) your data is secured for 7 years as per UK norms
Get investor-ready with clean books and professionally maintained records
For a lot of startup founders, at least 20% – if not more – of their meetings are devoted to attracting additional funding to grow their business. That is largely a numbers conversation. Moreover, looking stumped or bringing less than perfect financial records to the table is not an option.
Invoicing software flags up errors and anomalies in data and deletes any duplicate entries. Suppliers are sorted according to geography or tax by default, or else by any other sorting criteria chosen by the user.
Moreover, all data being sorted digitally in a single location makes for easy retrieval. There is a search function that lets you search for files using keywords.
Skip the consultant in favor of automated business insights
With all that data running through its robot brain, your intelligent invoicing software is capable of drawing inferences and delivering useful, spontaneous business insights rooted in hard facts and data. You’ll get automatic insights on supply chain leaks and other areas where spending is high or rising and you’ll also know who your most (and least) lucrative clients are.
Reduce/delegate your approvals burden while maintaining control
We talked about how your team needs to be given the space to focus on their core profitability-oriented duties. But what about you, the brains behind the business? How much of your creative energy is being diluted by tasks like expense approval? Reduce the time taken for such tasks with invoicing software that gives you the ability to approve expenses at a click. Moreover, as you develop a circle of trusted associates, you might feel like you trust some of them sufficiently to delegate expense approval. Invoicing software lets you add approvers and therefore add tiers to the approval process.
Approach invoicing like retail giants do
Wouldn’t it be nice to have the crisp professional-looking invoices that retail giants like Amazon send out? Wouldn’t it be just perfect to have error-free invoices, to never forget to send one, to always bill on time, and to know – without having to ask – whether your client has seen an invoice or made a payment?
Get all of this when you opt for invoicing software. You’ll receive prompts at invoice deadlines and invoices will be generated automatically. You’ll even know when your client opens an invoice and when they pay it off. You also get an alert when invoices become overdue. Now that’s how invoicing is aced.