Running your business might have felt like a dream until success brought more invoices than expected. Completing, filing and tracking each transaction is complicated. The process also leaves room for common mistakes. Uncover the hidden costs of manual billing by reading about those frequent errors and how to avoid them. You’ll manage your business and provide for your family with more confidence.
1. Hand-Tracked Work Costs Productivity
Consider the time you spend on invoices every month. Those are hours you might otherwise spend improving your operations, working with customers or training employees to improve your company’s success.
Using software with artificial intelligence (AI) built in could improve your productivity by 3.4%, which may increase if you automate those AI tools. Use the latest software to track payments, due dates, and every other invoicing task to gain time for your business or family.
2. Exhaustion Leads to Math Mistakes
You might save your administrative work for the evenings when things slow down after you close for the day, but you’re also likely exhausted from a hard day’s work. Your fatigue could result in a misplaced decimal or an incorrectly logged date. Don’t risk bills going unpaid because you need some rest — automated invoicing tools will ensure daily accuracy so you can restore your energy.
3. Administrative Burdens Increase
Invoicing involves more than typing totals into a spreadsheet. You also have to organize the documentation, CC anyone who helps with your finances and check that previous incoming payments arrived. Automated software can make money land in bank accounts faster while handling those administrative tasks, improving your ability to pay bills on time.
You could also use the tech upgrade to mitigate financial responsibilities. If you have someone helping manage your enterprise, they can learn the platform through built-in educational resources. The process would be more straightforward than teaching someone how you handle invoices on the fly or organize them in your filing cabinets.
4. Payroll May Not Happen on Time
Crunching numbers costs time. If your company is experiencing a growth period, you may be too busy to spend as much time on your spreadsheets. Success shouldn’t cost you or your employees a paycheck. The mistake could even cost you your team, since people will have to seek employment elsewhere if you don’t pay them on time.
Let an automated platform file and send payroll on a custom schedule so no one worries about keeping the lights on at home. You’ll impress your crew and become a more reliable employer. People will get excited when you post job availability because your reputation precedes you in the hiring space, especially if other local business owners are still using manual payroll systems.
5. Interruptions Could Result in Overdue Invoices
If you run your company primarily by yourself, you know that jumping between tasks is part of the job. Maybe you work from home and care for your kids during the day. If you leave your computer to make protein-packed egg bites or help your toddler in the bathroom, you could forget what you were doing with your finances
Forgotten details might cause invoices to go unpaid. Automated processes handle everything so you don’t experience the hidden expenses of manual billing. If you can’t spend more than a few minutes with your computer, you won’t risk financial mistakes that hold you back.
6. Poor Record Keeping Increases Compliance Risks
Invoicing software that doubles as a payroll processor can decrease your compliance risks. They have robust security measures to protect the sensitive data your employees gave you for their direct deposits. You won’t have to transfer that information through email or between less protected spreadsheets if you invest in automation for compliance improvements.
7. Manual Invoicing Mistakes Harm Your Tax Filing
Some expenses are difficult to remember. You might get busy restocking and forget the various places you ordered supplies online. These details may seem small, but they add to significant tax write-offs you can’t take advantage of in the spring.
Automation solves that issue. Even the smallest deductions may lower your tax bill if you have an accurate record, which modern financial software can easily handle. Whether you get busy, become ill or hand invoicing off to someone on your management team, you’ll always have an accurate expense record when it’s time to file taxes again.
8. Invoicing Issues Irritate Clients
Sending invoices for services requires accuracy and timeliness. If people don’t get receipts for their purchases quickly, your business becomes a less reliable place to spend money. You won’t have disgruntled customers or partners with an automated invoicing system. They’ll get the information they need for their records, and you won’t lose any potential future revenue due to reputation damage.
Avoid the Hidden Costs of Manual Billing With Automated Tools
Invoicing software has automation capabilities that support customers, pay bills, handle payroll and more. You don’t have to worry about crunching numbers when you’re exhausted or experiencing a busy workday when you upgrade your financial process with a modern invoicing tool. You’ll quickly experience the personal and professional benefits that win over many other business owners.