Think you don’t need an invoicing tool to properly run your business? Think again. According to Credit Union Times, 56% of all bills are paid online by people of varying ages. In fact, younger generations including Millennials and Gen Xers are paying bills online at even higher rates of 61% and 60% respectively. Why is this important? For example sake, take into consideration the dental industry. Many outlets agree that collecting dental payments online is a smart idea to ensure a more efficient billing process for both the customers and the provider. And as we just learned, there’s a clear demand for electronic billing.
But it’s not just dentists and medical offices benefiting from cloud-based billing solutions. The freelance economy is growing. Every day more and more independent contractors, specialized professional services, and other small businesses find that switching to an online invoicing software is the best way to meet consumer bill payment trends. Not yet convinced? Take a look at some of these reasons why professional services of all kinds are making the switch:
It's easy to overlook, but the cost of those stamps and envelopes add up when sending paper invoices. Not to mention the time and energy spent mailing out bills and chasing down late payments is something every business should consider when looking to reduce overhead.
Avoiding Late Payments
The struggle is real when it comes to getting paid on time! 23% of Americans incur late fees each year due to misplacing their paper bills. This is on top of the fact that every week 400,000 mailed items never reach their destination and 100,000 pieces of mail arrive at least 15 days late, all of this meaning your late invoices are causing your business to miss out on crucial payments.
Mobile Bill Pay
There’s no doubt we live in a mobile world. Because of this, consumers have changed the way they live their lives, including the way they pay their bills. Mobile payments and bill pay isn’t just common, it’s the norm. Between May 2016 and June 2016, the percentage of all consumers who had made mobile payments jumped from 30% to 74%, again proving that keeping up with electronic billing trends is a major key to success.
Let’s Run Some Numbers
These factors affect both you and your clients:
- Currently, one 1st class stamp in the U.S. costs $0.49. Let’s say you send 50 invoices every month. That’s almost $25 on postage alone, not including cost of envelopes and manpower expended to organize bills for departure.
- Yes, it is worth mentioning again! Every week 400,000 mailed items never reach their destination and 100,000 pieces of mail arrive at least 15 days late, meaning your late invoices are causing your business to miss out on crucial payments.
- The average American household receives between 7-9 mailed bills per month. With some of those arriving late or getting lost altogether, late fees are typically incurred and your clients are stuck paying postage plus penalties for overdue invoices.
PRO TIP: Use this free invoicing calculator to see what you’re spending by sending paper invoices.
Many invoicing softwares cost as little as $29/month and are designed to get you paid faster, easier, and more effectively overall. According to NerdWallet, businesses that opt to automate their billing processes reduce invoicing costs by 40% to 70%. Implementing an invoicing solution also frees up time for business owners to focus efforts on more important matters.
So… what do you say? If you think saving time, money, and resources sounds pretty awesome, Payscape’s invoicing software is just for you.
Try a free, no obligation 15-day trial and sign up for a free live demo of the software here: