It is not recommended for a field service business cannot use general invoicing software for managing its payment operations. A service business has its special needs for managing its cash flow and payments to third-party vendors or field service technicians.
If you’re a field service business owner operating globally, it’s more important to take care of compliance and local payment laws. For this, adopting invoicing software is a great step to streamline your cash flow management.
In this article, we help you understand the needs of field service businesses for managing cashflows, and how invoice management software solves it.
What is service invoice management software?
A service invoice management software helps make invoicing workflows with clients, field services technicians, or vendors efficient via automation. Its major benefit lies in eliminating any errors caused due to manual tasks and remote online payment collection.
For example, for a field service operation, it may be more feasible for field service technicians to collect payments on the job site itself. For this purpose, invoicing software is useful for immediate billing and providing payment options.
Key features of a service invoicing software
When choosing invoicing software for field service operations, check for the below features:
- Invoicing templates: the invoicing software should include customizable templates. Check if you can add or change custom fields and include your brand assets.
- Automatic payment collection: if you run subscriptions, custom payment format, or collect advance payments, your invoicing software should be able to handle it automatically.
- Track invoices: from sending the invoice to tracking payment status from your client side, good invoicing software will share insights on the complete invoice journey.
- Integrations: if you use separate accounting, sales, and CRM software, it’s important the invoicing tool can integrate with them to share or receive data. (Check out Coupa’s solutions)
How does service invoice management software improve cash flow management?
Digitizing your invoicing operations with software helps you focus on more important tasks that require attention. Such practices eventually achieve your business outcomes and stabilise cash flow.
1. Reduce human errors due to manual work
By using templates and pre-filled service or product data, invoicing software reduces too much human intervention. Adding incorrect rates on bills, unaccounted discounts, missed payment charges, etc are common errors when invoiced by humans.
When you automate your invoicing processes, you reduce such errors and avoid any potential disputes. You also avoid delayed payments – and thus, better cash flows.
2. Automate follow-up with clients for payments
Follow-ups increase your chances of purchase conversions by at least 10% compared to sending one email only.
An invoicing software will help you automate the following-up process till your client makes a payment. Your client can also opt to unsubscribe from the notifications in case of the deal falls apart. The field service business owner also gets notified about the payment status of their existing and potential customers.
3. Make payments as per the decided terms of the contract
A service business usually customizes the payment terms depending on how the client negotiates and the job at hand. Some may choose to make partial payments as an advance to kickstart the project. For some, the field service business offers a recurring monthly payment option, especially maintenance offers.
Your invoicing software needs to have such custom payment modes to incorporate your contractual obligations. At Zuper, you can accept partial, complete or recurring payments via ACH/bank or mobile card reader.
4. Manage taxes
Managing taxes is a crucial aspect of any business operation. Taxes help in financing government activities such as infrastructure development, education, healthcare, and social welfare programs. However, tax regulations can be complex and vary across jurisdictions. As a result, it is important for businesses to have an effective tax management system that ensures compliance with tax laws and minimizes tax liability.
Understand the Tax System
The first step in managing taxes is to understand the tax system. This includes understanding the tax laws and regulations in your jurisdiction, as well as any exemptions, deductions, and credits that are available. It is also important to understand the deadlines for tax filings and payments.
Maintain Accurate Records
Maintaining accurate records is essential for tax management. This includes keeping track of income, expenses, and receipts. It is also important to separate personal and business expenses and to keep all business-related records organized and easily accessible.
Use Tax Management Software
Using tax management software can help streamline the tax management process. Tax software can help automate tax calculations, generate tax forms, and provide reminders for tax deadlines. It can also help with tracking expenses and generating reports.
5. Gather insights from invoice reports
Invoicing is a critical aspect of any business, as it ensures that customers are charged accurately and on time for goods or services rendered. Invoice reports can provide valuable insights into a company’s financial health and help identify areas for improvement. In this section, we will discuss how to gather insights from invoice reports.
Track Invoice Trends
One of the primary benefits of invoice reporting is the ability to track trends over time. By analyzing data such as payment times, payment methods, and outstanding balances, businesses can identify patterns and make informed decisions about how to improve their invoicing process.
Identify Late Payments
Late payments can have a significant impact on a company’s cash flow. Invoice reports can help identify customers who consistently pay late, allowing businesses to take action such as implementing late fees or adjusting payment terms.
Spot Billing Errors
Invoicing errors can lead to incorrect charges and billing disputes. By regularly reviewing invoice reports, businesses can identify errors and take steps to correct them, improving accuracy and customer satisfaction.
Zuper also enables your field service business with customer financing
You can make customer financing your unfair advantage via Zuper’s Wisestack. Using this, your customers can instantly apply for many available financing options without much paperwork. Such provisions will help a field service business get larger contracts, thus improving cash flows.
Book a demo to understand how Zuper’s invoice management software can help you streamline your invoicing and cash flow management today.