Everyone is talking about “the cloud” and operating “in the cloud”. But what does this mean for a business and its financials?
It turns out, quite a lot
Cloud-based billing systems can provide your business with plenty of advantages that can streamline operations, reduce costs and labor, and boost productivity.
If you’re interested in moving your billing to the cloud, consider the following benefits. You’ll soon see why other businesses in Pakistan and across the globe are choosing this option.
1. Your Business Looks More Professional
Creating a professional impression is a great advantage for small businesses or recent start-ups. When you use a cloud-based billing system, you automatically give your company a professional look and enhance its credibility. Customers will view you as an authority in your field and you’ll establish trust that inspires confidence.
2. It’s Quicker to Create Invoices
Most online billing systems have the means of generating invoices very quickly. You’ll have customer information stored in the system, meaning you don’t have to continually write those details out each time you generate an invoice for a returning customer. You can also store rates for products or services, as well as descriptions for what you’re selling, and recall those quickly for creating new invoices.
3. You Reduce Human Error
A big factor in invoicing is the risk of human error in calculations. An online invoicing system should help by making calculations on your invoices automatically. You simply need to input the number of items sold or hours worked and the base rate for each line item. The invoice system will then calculate the price, add taxes, and tally up the total for you.
4. Automation Becomes an Option
With a proper digital billing system, you can automate the creation, sending and following up of invoices. The entire process is auto-completed online and you can monitor the entire process from your computer. This is particularly useful for recurring clients or jobs, as well as for monitoring payments that are often late from particular clients.
5. Your Invoices and Records Are Available Anywhere
Cloud-based means that you can access your data from anywhere and on any device. All you need is an internet connection and your login details. This is a major advantage if you’re constantly on the go but need to stay in touch with what is happening with your invoicing and billing.
You can generate invoices from anywhere and keep tabs on your finances at all times. It’s incredibly convenient to be able to finish a job on site for a customer and issue them with a digital invoice there and then.
This is also beneficial if you outsource your company’s financials to a bookkeeper or accountant. They can access your cloud-based system from their own office and know that they have the most up-to-date information in front of them.
6. Financial Records Are Backed Up
It’s vital that your financial records stay backed up. You never know when disaster might strike—a flood or a fire in your office, a computer crashing, or paperwork simply getting misplaced and lost. When you utilize a cloud-based system, all of your data is automatically saved in a place that can’t fall victim to those disasters.
It’s true, digital information stored in the cloud can get hacked and then altered or stolen. However, the risks are lower than if the data is stored locally. Even so, it’s good to have a backup on a hard drive that’s kept separate from the rest of your work or office. You should run this backup regularly to ensure that it tallies with what’s stored in the cloud.
7. Reporting and Forecasting Become Easier
When all of your financial data is stored electronically, you’ll find that it becomes far easier to create reports and analyze the information. If you’re working with accounting software, you’ll see that it most likely has a built-in reporting function that allows you to pull data and stats at the click of a button.
With such easy access to data, you can create accurate forecasts and make data-driven decisions that benefit your company and are backed by fact.
8. Better Flexibility and Scalability
When you’re starting a business, you’re always on the lookout for quick fixes that save you time and money. If you know how to make an invoice, manage payments, and balance your books, you’re already on the right track.
But the system that you start with isn’t usually going to be scalable or give you what you need in terms of flexibility as your business grows. Especially if you started with a handwritten paper invoice. A cloud-based solution gives you far better scalability and flexibility to work with.
9. Integration with Other Business Systems
If you want to make your business even more streamlined, then you need to look into an online invoicing system that can integrate with other business systems. For example, you can connect your invoicing to stock and inventory management. The two systems will talk to each other and let you know when you’re running low on certain parts or products.
Another example would be to connect your invoicing system to your timekeeping system. You can then automatically log how many hours are worked on a specific project or part of a project. This way, you can see if you’re charging enough for your work, or if there are bottlenecks within your company that are causing you to lose money on projects.
10. Lower Costs to Your Business
The biggest advantage—and something that all businesses are looking for—is that a cloud-based billing system can actually lower costs in your company. This is done by reducing man-hours spent on billing, interconnecting your systems to reduce the time needed to monitor both, eliminating human error on invoice calculations so that you get paid the correct amount, and even automatically chasing late payments for you.
Cloud-Based Billing Systems Work with Your Business
Cloud-based billing isn’t about looking to the future. It’s about technology that’s readily available in the here and now, even for small businesses with limited cash flow. You’ll find that switching to an online system allows you to free up time for making more money and improving your company. Why wait?