“Cash is king” is as relevant today as it’s ever been.
Preserving liquidity and consistent cash flow is key for companies since 82% of business failure is the result of poor cash flow management. Statista has predicted online transactions will reach $4.4 trillion by the end of 2020 and later an increase of 17% YoY is expected.
Online billing and payment software have become popular because they are fast, easy and convenient for both seller and buyer.
Setup is quick and easy to facilitate more sales
Regardless of the size of your company, setting up a software solution to receive card / direct debit payments is easy and quick to start selling minutes after implementing it.
Client onboarding process is quick and painless
New signups, on your website, can get a quote and pay online right away, without even talking to you first. Once the order has been completed, a confirmation email is sent to your new client, and a follow up call with your team is scheduled.
Accurate invoices are issued on time
While invoices for some clients are straightforward, others aren’t: tiered rates, volume-based discounts, taxes, etc. Organizations who can’t handle this automatically need dedicated teams to ensure details are correct and fix problems raised by clients. This means there is a direct hit on their margins: labor costs typically account for over 60% of billing costs. Automated billing can reduce the related cost by 29%. And, of course, accurate invoices coupled with automated payments makes the month end accounting process a lot quicker.
Revenue is collected on time
Effective revenue collection is a key element of cash flow management. Clients can pay by card or put a bank account on file with you. Both your client and you can relax: you are paid by card, online, right away, and with direct debit, payments are automatically collected when they are due, and your client has nothing to do and is simply notified of the new transaction. So no more chasing down payments.
There are almost no payment failures
Online payments are made by clients with their card; they succeed or the purchase ends. Direct debit payments use your client’s bank details, which rarely expire or change, so failure rates are less than 1%.
Amounts paid can vary
The amount paid can change, even for direct debit without needing your client to re-authorize. As a result, you can take variable amounts without administrative hassle.
Everything is stored in the cloud
Invoices are saved and stored online. While at home or traveling – invoices can be accessed 24/7.
Online payments are extremely secure – PCI security standards, strong encryption protocols, ISO27001 and HTTPS for secure connections.
It’s environmentally friendly
Digital billing is 4 times more environmentally friendly than paper billing. It saves the trees. You are saving water and energy, and it reduces pollution.
You can create automated reports
Reports help you track activity, so you know who your most profitable clients are and whether, or not, there are fluctuations in spending patterns. As a result, you can reach out to clients who haven’t made a purchase in a while and offer perks to your highest spenders.
Systems are integrated – data flow freely
Our online billing and payment software can integrate into your ERP and CRM and automate your entire invoicing and payment process.
It takes some communication with the clients!
It may take some time to scale client adoption. But in the long-run, online billing and payment provide sustainable cost advantages that enable companies to target cash flow by focusing on both faster receivables and keeping a higher portion of revenue collected.
At Distroship, setting up the Billing & Payment module is quick and easy. The invoice, created automatically for your account, reflects your brand, logo and details. Your client is billed the right amount, as quoted online, on your website. Then, as agreed with you, your client pays online or by direct debit. In both cases, all tasks are automated, and the money is automatically wired to your bank account so your client has nothing to do and you don’t have to chase your money. All shipment and financial data are fed into your accounting system for usual periodic processing. Finally, your team has more time to focus on sales and customer support.