The Ledger No. 11: Invoicing

July 28, 2021 Sarah Dameron

accountant on computer's invoicing services software

Welcome to The Ledger where we sum up the latest finance and accounting news and trends for you. On this week’s entry, we’re diving into the topic of invoicing services and how an efficient invoicing process can make a difference to businesses today. Read on to see how to make your accounting function more efficient, how CPAs can navigate cash flow issues, how to assess your company’s performance with billing reports, and how to create (and maintain) a financially sound business.

invoicing services weekly news

How To Make Your Accounting Function More Efficient With Prestigious Invoicing Services

In the accounting and finance function, efficiency is a prized jewel. That might seem like an exaggeration, but the truth is, every CFO, Controller, Accounting Executive, and the like want to streamline their tasks with ease. David Lushington, owner of the TaxAssist Accountants Oxford Franchise, touches on this issue and how his team unlocked greater efficiency in their firm.

So what does efficiency entail?

“… I liked the idea of automatic invoicing and reconciliation.” – David Lushington

As the summer draws to a close and fall seeps into the horizon, accountants need to figure out how they can stay abreast of any new compliance changes, updates in technology, and more. Read the full article and find out how David and his team made their accounting process more efficient.

How CPAs Can Navigate Cash Flow Issues

Covid has forced many businesses to make some tough financial decisions and unfortunately, those companies just don’t have the positive cash flow to keep the building lights on or pay their employees. The reality is, most small businesses – accounting firms included – fail within five years because of a lack of cash flow. So how can organizations prepare for the valleys while keeping their businesses afloat? Here are a few ways.

  • Forecasting

  • Reducing expenses

  • Invoice clients in a reasonable manner

  • Know your financing options

For an in-depth look at how accounting firms can play offense when managing cash flow issues, head over to AccountingToday.com.

How To Assess Your Company’s Performance With Billing Report & Invoicing Services

For many businesses, having enough data is not a problem – but how they measure it can be a bit more tricky. Most people in leadership positions rely on  reports such as ARR, MRR, and DSO to determine revenue performance, but that only skims the surface. If you really (and we mean really) want to dig deeper into financial health of your company, here are 10 reports you can obtain from your billing system to evaluate your organization’s performance and growth:

  • Missing invoices

  • Missing products and services

  • Usage throughput

  • Billing errors

  • Aged receivables and DSO

  • Customer churn

  • Consumption analysis

  • Upgrades and downgrades

  • Customer billing profiles

  • Customer lifetime value

To learn more about how data stored in your billing system can reveal a lot about your company’s finances, head over to Forbes.com.

How To Create a Financially Sound Business

No one starts a business with the thought of ever losing it. Sure, it might take a few years (or a decade even) to get your company where it needs to be, but that’s the essence of owning your own business. And as Mike Kappel, founder and CEO of Patriot Software, LLC says, “No one goes into business to lose money.” So here are a few tips from someone who’s been around the entrepreneurial block or two on how to build and maintain a financially healthy business.

  • Know your numbers – live and breathe them.

  • Maintain timely and consistent billing practices – the sooner you invoice, the sooner you get paid.

  • Keep up with your financial obligations – don’t dilly dally.

  • Set aside funds for emergencies – just like Dave Ramsey emphasizes this for personal finances, it also applies for businesses. Expect the unexpected.

  • Separate your business from your personal funds – don’t mix business with personal.

If you’re wanting to reap the rewards of making healthy financial decisions for your business, head over to Forbes.com to read the full article.

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