Most business owners will agree: Timely billing and payment is the key to realizing optimal cash flow for their company. Yet, ensuring it is often based on the ability to keep an accurate track of various project costs, and then submit prompt invoices to clients for billing.
Ultimately, an organization’s success is directly related to this cash flow pace. Consequently, it’s critical that billing processes are as efficient as possible.
In many of today’s companies this is far from the case. In fact, many businesses often struggle with manual methods for submitting/reviewing employee time, managing project-related items, processing expenses and so on. These factors not only can cause cash flow to slow down to a snail’s pace, but they also hinder overall profitability and success.
Why Timely Billing Is So Important
To invoice accurately, typically you need precise information about many factors that can tend to vary. Different individuals are billed at different rates, or the same individual’s time is billed differently per task, for instance. Before invoicing can even take place, their hours and rates must be calculated. When done manually, this process can be painstakingly slow and extremely tedious. And, if any of the important data has to be re-entered during any stage of the process, errors can often result.
Challenges like the one mentioned above can be overcome by implementing a billing solution that simplifies and streamlines data entry and management. With the right technology solution in place, user adoption rises and information about billable hours becomes available in real-time, making it easy to shorten billing cycles and improve overall cash flow.
But Which One Should I Choose?
There’s a variety of billing solutions available on the market today, but their features tend to vary. Here are four best practices to help ensure that the solution you choose will make billing your clients easier. At BillingTree, we suggest choosing a solution that:
- Makes administration easy. Choose a system that has a strong reporting capability and gives real-time visibility into project status and important billing data.
- Reduces paper- or Excel-based tracking. Select an automated, cloud-based software solution that centralizes time capture, streamlines billing, and eliminates the overhead and difficulties associated with a manual system.
- Exchanges information easily with other apps. Capturing billing data in dedicated time tracking software is only one side of the invoicing/cash flow equation; sharing that data with accounting apps is the other “must-have” ingredient for billing. An ideal solution is an automated exchange via an API. Choose a solution that enables seamless integration with other systems used across your organization.
- Ensures the security of your data. Today’s leading billing solutions providers offer security, network protection, as well as compliance monitoring.
The bottom line: To achieve optimal cash flow, today’s organizations need a way to get timely and accurate billing data. Smart companies today are increasingly eliminating cumbersome manual processes and, instead, turning to web-based systems that make it easier for team members to enter, view, and manage data.
With the right solution from the right vendor, your client billing process will become streamlined and incredibly easy. Contact BillingTree today for details about our innovative Payrazr billing solutions.