As a business owner, you probably wear many hats — from pricing of products, chasing debtors, paying creditors, and most aspects involved with running your company. If there’s one task that undoubtedly takes a lot of time, it’s invoicing.  

You’re likely to be familiar with the painstaking steps of generating, scheduling, and sending an invoice (or processing invoices received) — all the way up to capturing it in your accounting software.  

If the sound of this stresses you out a bit, you’re not alone.  

Invoicing is a necessary but time-consuming task. But there’s a solution that can simplify the process and won’t have you pulling your hair out. By integrating an automated invoice system, which is basically a function of your accounting system, with your payment platform, you can save yourself and your employees time in the billing process, reduce errors, and improve your business’s cash flow.  

Are you ready to focus on working on your business and not in it? This guide on invoice automation will provide you with what you need to know about automated invoicing. 

Automated invoicing system for suppliers 

With suppliers, automated invoicing works differently.  

In this case, you or your accounts payable clerk scan the invoice so it’s captured in your online accounting system, and the invoice process unfolds from that point.   

Let’s examine how the automated invoice processing software works its magic for suppliers: 

• Receive invoices electronically from suppliers: This is typically done via email or the cloud.  

• Invoicing software automatically imports the invoice: Your invoice software will then extract data from the invoice onto its system. The data includes details like your suppliers’ banking details, your customer information, and transaction details, like units and prices.  

• Automated invoicing system automatically matches the invoice to a corresponding purchase order: Your invoice processing software will then match the invoice to the purchase order to ensure that it’s properly accounted for.  

• Invoice processing software automatically sends approval notifications to the relevant party: Before your business can pay its supplier, payment will need to be approved by the accounts payable team and entered into your business’s ERP (enterprise resource planning) system as an expense.  

• Once approval is received: If you have a third-party payment system integrated, then you can easily pay your suppliers in bulk directly from your Netcash account. Once that payment is made, if using Netcash, the invoice will automatically be marked as paid and reconciled back into your integrated accounting package. 

What is automated invoice processing? 

So, what exactly are automated invoices and the processing thereof?  

Invoice processing automation entails using technology to automatically generate, schedule, and send an invoice with minimal human input.  

It works a little differently for your business’s customers and suppliers, but the invoice automation process can still help your business save time, minimise errors, and improve cash flow. 

Automated invoicing system for customers 

Automatic invoicing allows you to conveniently input customer and product or service information at one time. It then populates the invoice for you with that information, your banking details, your VAT number, and other information you wish to add.  

The invoice processing system automatically schedules the invoice for a specified event (e.g., after a customer places an order) and thereafter sends it to your customer. 

A few examples of accounting software that offer this, and that Netcash is integrated, can be found on our Accounting Partners page.

Here’s a step-by-step breakdown of this process (which differs from system to system): 

• Set up the automated invoicing software: First, you’ll need to enter your business information (e.g., VAT number), business address, and payment terms. 

• Create your business’ invoice template: You’ll set up a template of your business’ invoice and ensure that it includes the required information. This includes the invoice date and number, customer details, quantity, unit price, product or service information, and total amount. 

• Generate and schedule to send invoices: Once you’ve set up your invoicing software, you’ll get to easily create and send invoices to your customers. 

• Integration: Integrate with a payments system, like Netcash, where the invoice can be sent with a payment link to easily pay online via multiple payment types. 

• Tracking: Track the status of your invoices, such as whether your customers have paid them or not. 

• Reconciling: Once payment has been made, the payment can be reconciled. If you integrate Netcash’s payments system with your software, the payment will be automatically reconciled back to your accounting software. 

 

Benefits of automated invoicing 

We’ve spoken quite a bit about how the invoice automation process saves your business time. But how exactly does it do this, and what other benefits are there to automated invoicing? 

Increased productivity 

Businesses are constantly looking for ways to improve productivity and output. When you automate invoice processing in your company, you’re freeing up the time you and/or your employees spend on manually processing invoices.  

Depending on the size (and nature) of your business, you could be dealing with hundreds or even thousands of suppliers. Implementing automated invoice management allows your employees to work on other tasks, which can lead to improved productivity and generate revenue for the company.  

It takes the average SME about 25 days to complete the invoice cycle for one invoice. Imagine how much time, productivity, and profits your business could unleash by automating the creation and issuing of invoices, as well as the recon of payments made.

Improved efficiency 

By automating the process of sending, receiving, and processing invoices, your employees can get more work done in less time, saving you time and money. 

Reduced errors 

Manual data entry can be a slow, tedious task. It requires focus and attention, which dwindles by the hour when one is manually processing large volumes of invoices.  

When you automate invoice processing, you help reduce the risk of human error. And if you use Netcash, then your invoices are automatically reconciled when payment is made. So there is no chance of human error.

Improved customer service and supplier relationships 

Automated invoicing can help foster better relationships with your customers and suppliers. It makes room for faster and more efficient invoice payments from customers, especially if you offer multiple convenient ways to pay.   

In addition, relationships with suppliers are improved if your invoices are always paid on time, and always correct. These are all things that make our suppliers happy.   

If you have Netcash, you have all this and automated reconciliation. Less opportunity for mistakes means a frictionless relationship.

Better insights 

Often, manually sorting through printed invoices doesn’t give you the whole picture. If you were to try to see the whole picture (i.e., without using the filters on an automated invoicing system), it could require a lot of time manually sorting through invoices to try to glean insights.  

With all customer and supplier information in one place, you can have immediate access to the data you need to make informed decisions. An example of this includes being able to determine which supplier you pay before settlement dates and how long you’ve had a relationship with them. Your business can use this information to negotiate early settlement discounts.  

When looking at customer data, you’ll be able to identify which customers are struggling to pay you and which ones you could offer trade discounts, for example. 

Improved cash flow 

By helping you speed up the process of paying invoices and collecting payments from customers, automated invoicing can help you manage your cash flow better. 

Improved compliance 

A lesser-known benefit of using invoice processing systems is potentially being more compliant with regulations.  

Making use of invoicing automation could help your business comply with government regulations by providing you with a secure trail of your financial transactions. 

Final thoughts on automated invoicing 

Automating certain business processes can give you a leg up in the competitive business landscape. It’s also clear that automated invoicing can transform your business operations by allowing you to reduce errors, improve customer and supplier relationships, and improve cash flow management, which all positively contributes to your bottom line.  

Manual data entry shouldn’t hold you back; it’s time to introduce efficiency and improved productivity into your invoice cycle by streamlining the process. 

Being in the fitness industry, you’re very familiar with working up a sweat, and on the workout floor, it’s celebrated. But where’s the celebration in sweating over the management of your gym?  

Unfortunately, there is none.  

There’s nothing to gain from sweating it out over an outdated gym management system when your time could be spent far better in other places. But, in an exceptionally results-driven industry, the challenge comes with staying ahead of the competition rather than catching up.  

Whether you’re running a large-scale franchised fitness club or a small niche gym, there are some pitfalls along the road to success. Luckily, there are also fantastic solutions, and taking control of your gym has never been more exciting. 

A quick look at the gym and fitness industry in a post-Covid world 

Looking back at the COVID-19 pandemic, it wouldn’t take long to see the incredible impact the global health crisis had around the world.   

Few industries were affected as profoundly and rapidly as health and fitness. According to the Global Health & Fitness Association’s 2020 Report in the United States, pre-Covid, the health club industry’s revenue totalled $96.7 billion.   

The report also showed that more than 184 million members belonged to about 210,000 health and fitness facilities in the country. Locally, before the pandemic, Virgin Active reported a total member count of 740,000, a record high.  

Things were going well.