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Getting paid on time and accurately is a hugely important aspect of running a business. Without it, cash flow falters and a business without liquidity cannot expect to succeed. And getting paid invariably starts with invoices. Mobile invoicing is a way to speed up an invoicing process that can be time-consuming and helps to reduce the risks of those invoices being ignored, delayed, or even lost.
Mobile technology has advanced significantly in the last few decades delivering efficiencies and improvements to almost all small businesses, from remote working to instant communication. So why should invoicing not also benefit?
Mobile invoicing helps businesses unlock their efficiency. Put simply, it gives a business owner the power to create and send invoices on the go, saving them time and even speeding up payment. This article will explore the benefits of mobile invoicing, how it can positively impact a small business and the best practices to follow to those benefits.
What is mobile invoicing? As its name suggests, mobile invoicing means an invoice that can be created from a mobile device – a smartphone, tablet, or laptop – and populated with accurate information stored securely. These mobile invoices are sent to the client immediately and usually contain information enabling the client to pay instantly.
There are currently 307 million smartphones in the US, according to a 2022 study, with a record 85% of American adults using the devices1. Given the reliance on mobile technology, it makes sense to utilize it in every way possible – in business as well as personally.
But how does mobile invoicing compare with traditional invoicing? Traditional methods can be unnecessarily time-consuming in an environment where everyone wants and needs to save precious minutes. Business owners have to set aside hours for invoices to be manually created, either by themselves or by employees, and pay for the privilege – hours that could be spent improving the business.
Mobile invoicing keeps a business up to date with its income, business trends, and modern technology, all while speeding up the process and maintaining a professional approach to customers.
What are the advantages of mobile invoicing? Creating and sending accurate invoices on the move is a great time-saver for both business owners and clients – especially when on a tight deadline. Mobile invoicing also helps to errors in invoicing, saving both time and embarrassment, such as disputes with clients. And with an accelerated payment process, mobile invoicing can improve a business’s cash flow.
Let’s look at those features in more detail.
Getting paid might be the top priority, but that can only happen with clients who are both willing and able to pay. So how does mobile invoicing help customer relationships?
Though they cannot be completely avoided, small businesses cannot afford to make many errors, particularly in comparison to their larger counterparts. Mobile invoicing works to make invoices more accurate and reduce human error, giving business owners valuable peace of mind. This is achieved by storing all information relating to each client in one place and populating the invoice with the relevant data once a client is selected. Fewer errors also lead to a better customer experience and overall productivity.
Offering a more convenient way to take client payments removes barriers they may face when making the payment. Mobile invoicing sends the client real-time notifications of their invoice and allows them to use their preferred payment method to pay easily and immediately. Payments can also be tracked, and reminders sent at any point, helping both parties stay organized. Quicker creation, quicker processing, and, most importantly, quicker payments create a win-win scenario for business and client.
Along with getting money in, another common priority for business owners is finding ways to reduce business costs. Mobile invoicing can help to keep costs down. All that is needed to get started is a smartphone and a reliable data connection to download a mobile invoice app. And there are many apps to choose from, such as Invoice2go, Freshbooks, and the PayPal for Business app.
Mobile invoicing software transforms the way a business works and saves. Think about how much space and money could be saved by using less paper, as well as the environmental impact. Postage fees are also drastically reduced, as invoices no longer need to be physically mailed to the client.
Mobile invoicing saves time in both creation and dispatching. Client information is saved to the cloud and accessed from any enabled device, meaning there is no need to delay invoicing until back at the office. It is a quick process to input these details, double-check, and send. And being able to check and track payments online means that far less time is wasted chasing clients, leading to fewer awkward conversations.
The PayPal for Business app keeps all this information conveniently in one place, with the added benefit of allowing clients to pay securely using PayPal.
It’s critical that security and protection measures are built into the mobile invoicing you choose to use for your business. A business owner often has access to a wealth of sensitive financial and client information, which should not be taken lightly. In a world that is increasingly online information must be protected against fraud and other risks. Business owners need to guard their interests and those of their clients, who in turn need to know their data is safe before making payments. If either party’s data is breached, it could mean financial, reputational, or even legal damage for the business.
Mobile invoicing apps keep this sensitive information secure by backing up data to a secure cloud, making it accessible only when logged in. The data is also encrypted, and each platform will have its own built-in security protection. Business owners must ensure that their chosen platform has up-to-date security protocols.
Another helpful feature is the integration of mobile invoicing with a business’s existing accounting software. This enables business owners to automate their bookkeeping. Fewer steps mean greater accuracy, a much faster turnaround, and more efficient analysis.
Good cash flow is essential to the smooth running of any business, and improvements must always be at the forefront of a business owner’s mind. As previously discussed, payments can be made quickly and easily with mobile invoices. This results in improvements in cash flow, leading to more accurate forecasting. When this is coupled with integrated accounting, businesses will benefit in both the long and the short term.
As well as the positives, it’s important to consider potential negative outcomes when deciding if a new system is the right move for a business. From initial costs to customers for whom it just isn’t feasible, here are a few disadvantages of mobile invoicing.
To take advantage of mobile invoicing, a mobile device - smartphone or tablet - is crucial for any business owner or employee involved in this task. These devices must also be equipped with mobile invoicing software and antivirus protection. Acquiring all the necessary equipment comes with a cost, especially if the user hasn’t purchased either before.
Business owners and any employees involved with the invoicing process will need training for this new task. Any hours spent away from their usual tasks, though arguably necessary, can result in extra work piling up and potential overtime costs.
Some clients, of course, may simply prefer to stay offline. The business owner may not have access to their email address to send mobile invoices to, which renders the whole process unusable. In this case, the business must continue to provide physical invoices, rather than digital copies, for this and any similarly inclined clients.
To use mobile invoicing to its full potential, a business owner needs to compile information, follow proven advice, and devise a plan. Here are some best practices for mobile invoicing:
It is clear that mobile invoicing is an excellent asset in a small business’s toolkit. Simplifying complicated processes, easing cash flow, and appearing professional at all times are essential.
The PayPal mobile invoice service helps businesses that want to streamline their finances at the tap of a button. Explore PayPal’s mobile invoicing solutions today for efficiency.
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