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The process of invoicing is as old as human civilization. History reveals that animal skin parchments and clay tablets show proof that creating invoice documents have existed for thousands of years. What’s remarkable about these historical findings is the fact that the basic format for writing invoices has remained the same. Alas, writing an invoice for every purchase made can be quite lethargic and more so if you have to send it via snail mail would take an eternity before your customer or client can finally receive it. Not to mention the fact that manual invoicing can also be prone to typos and other errors.
Luckily, technology gave rise to one of its biggest innovations which is the creation of online invoices. Today, every type of business can largely benefit from the use of online invoicing. Even if your customers and clients are on the other side of the world, sending an invoice can be done in a matter of seconds. No matter what type of business you have, whether you are a retailer or wholesaler you can definitely benefit from the use of online invoicing. If your business is in construction, there is an accounting software for construction professionals that help make invoicing a lot easier. This is because such accounting software creates invoices that are highly customizable and easy to use. So, before you think that your business is too small to benefit from online invoicing, think again. One of the best ways to scale your entire business is to improve the way you process your invoices. Below are the different types of businesses that make use of online invoicing.
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Business to Business (B2B)
An online invoicing for business to business entrepreneurs is beneficial for automating the process of creating and emailing invoices. The best thing about having an invoice processing software is the fact that it also takes care of the payment processing. Your business clients can safely input their payment information and then as they click on the “pay now” button, their invoice can also be processed at the same time. With an online invoicing software, you are able to eliminate several processes from your daily to-do list such as mailing of the bill, depositing funds and manual invoice generation. This, alone can already add to your productivity goals.
Business to Customers (B2C)
In a B2C e-commerce, the process of invoicing usually starts after the payment has been made. The invoice should indicate the details of each payment made. These electronic invoices will make it easier for entrepreneurs to track information for quick reference. This not only means less clutter but it also means saved costs on storage spaces. With online invoicing, postage fees do not have to pile up. The money saved from paperless invoicing and being able to eliminate the need for storage cabinets can all be used for improving other aspects of the business.
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Consumer to Consumer (C2C)
If you are a consumer who also sells products to fellow consumers, then you would also benefit from using online invoicing. Famous examples of C2C are eBay and Amazon. But, if your business is still a startup, online invoicing can largely improve your company’s reputation. This is true especially if your online invoice has a well-designed company logo and a customized arrangement of your own company’s details. Once consumers notice that you have a reliable invoicing system, they would also see you as someone who is ahead of everybody else in the industry. Therefore, you can easily increase your network of fellow consumers while also growing your company’s ROI.
Consumer to Business (C2B)
When consumers offer products and services to businesses, then it is considered a C2B or Consumer to Business company. If your company provides customer reviews or if you are working as an influencer, you will also benefit from online invoicing. You can just send invoices to the businesses via email. Depending on your chosen invoicing software, you may also schedule recurring invoices. This way, no matter how busy you can be, creating invoices would become one less thing for you to worry about.
With online invoicing, any product purchased or service delivered can be easily edited anytime and wherever you may be. When online invoicing is scheduled and edited properly it would be much easier for entrepreneurs to just sit back and relax. This also enhances the tracking capability of your business to monitor the daily sales and profit. Not to mention the fact that automated online invoicing helps you save so much time than manually writing down the details on a paper invoice. The time you saved would mean more time spent on vacation, family and other things that you as an entrepreneur also value.
