Billing system for small business

The billing system is the most important function of the sales process in an organisation. A lot of thought and effort goes into setting up a streamlined billing system. In recent times, billing system software has been prominent in helping businesses to improve efficiency in their business process.

Meaning of billing system

A billing system includes procedures and processes that help create bills and invoices for customers. Nowadays, billing systems include software that allows transmitting bills and invoices to the customers offline and online. Businesses need to have billing system software for the following reasons:

• To keep track of sales and payments received
• To manage cash effectively
• To prevent errors in the compilation of bills and invoices
• Optimisation of business processes

Salient features of billing system

• Customisable: Billing and invoicing requirements vary in each business. Invoices in the billing systems must be customisable so businesses can include all required details and change the invoices regularly.
• Data backup: Billing systems can create master data of parties and amounts. It also creates a backup either offline or online. Systems also provide easy data extraction for tax return filing and any other usage.
• Compliance with GST: Most businesses have to follow GST filing and related compliances periodically. Billing systems include features that can aid the business’ compliance with GST.
• Reporting mechanism: Billing systems help generate reports on various matters. This can save time and cost of preparing reports and better analysis.
• Payment features: Billing systems nowadays also include links and barcodes for facilitating online payments easily. This also provides for easy reconciliation of payments received. 

Why should small businesses use billing systems?

• Instant Invoices: Bills and invoices are created faster than manual bills due to readily available formats and past customer data. One can also customise bills based on requirements with minimal effort. This helps save time and the cost of billing.
• Security: Once the software is deployed, access controls can be placed to prevent misuse or wrong issue of invoices. This also ensures transparency in the billing system.
• Paperwork reduction: Due to the automation of the process, billing systems make it easy to keep records of items. This helps immensely in accounting and reports preparation by preventing errors and omissions. 
• Easy payments: The payment process is made easy with the help of online invoices. Billing systems also help maintain a record of all payments received.

How can small businesses choose and maintain a billing system?

Choosing a billing system depends on the requirements of each business. Small businesses can choose from various plans that sellers offer or even customise the plans based on requests. A small business must ensure the billing system consists of the following key components:

• Product and service master data storing
• Payment processing
• Data backup
• Availability of software online/offline
• Security and safety
• Accounts receivable and payable management

ClearOne is an invoicing software that allows one to select standard plans or customise based on business requirements. This kind of software is most beneficial for small businesses who want to switch to online billing system solutions.

Billing systems can immensely impact all types of businesses by improving efficiency. Since billing and invoicing is the most important part of a business, investing in them can provide gains in the short and long run.