How Does Mobile E-Invoicing Speed Payments?

Updated on November 26th, 2020
HOW DOES MOBILE E-INVOICING SPEED PAYMENTS

For hundreds of years, there wasn’t much innovation when it came to invoicing. A business owner would write-down the services provided or goods purchased, mail the bill to the client, and then patiently wait for a check.

It was an antiquated, tedious, and slow process that could cause your cash flow to come to a screeching halt. Thankfully, in the early 2000s, that changed with the advent of electronic invoicing and billing.

With electronic invoicing, you could create invoices on your computer and then send them electronically via email. Originally, you would still have to create an invoice using a spreadsheet, but as it became more commonplace, more and more companies began offering invoicing templates and recurring payment options. Ultimately, this saved you time, money, and increased cash flow into your business.

Interestingly, despite these benefits, the Federal Reserve Bank of Minneapolis (FRB) estimates, that only a mere 25 percent of the 25 billion invoices generated annually in the US are exchanged electronically. However, as the mobile revolution continues to unfold, we anticipate that this trend will change.

Take into consideration the fact that mobile payments are expected to grow at a 23.2 percent compound annual growth rate (CAGR) through 2020.

Combine that mobile payment stat with the benefits of e-invoicing, and it’s easy to understand when mobile e-invoicing will become the next big thing in the billing industry.

What is Mobile Invoicing and Why Are They Awesome

What is Mobile Invoicing and Why Are They Awesome?

Let’s quickly go overview what exactly mobile payments, and why we love them,

In a nutshell, mobile invoicing allows you to send bills and manage invoice directly from your mobile device through. As Angela Ruth explains in ‘Trends in E-invoicing,’ “We expect to have access to invoices so that they can be reviewed, sent, and approved – regardless of where we are currently located in the world.”

“Having this 24/7 access will become a major consideration for people when selecting invoicing software,” continues Ruth. “If the company is not mobile friendly, like featuring an app, customers may move on to a company that does offer such a feature.”

Even countries are backing mobile invoice. In Chile, tax authorities are developing an app “that gives businesses the opportunity to submit tax documents via their smartphones.

The main reason that people are falling in love with mobile invoices is that they’re convenient. In fact, according to research by Manta, 80% of business owners spend at least once a day on a mobile device for business.

But, another perk is that mobile e-invoicing speeds up payments. Of course, this is a big deal for business owners since it increases cash flow. And, when you have a positive cash you, you can stay ahead of your expenses and start putting more money into your business, savings, or retirement.

But, how exactly does mobile e-invoicing speed-up payments?

How Mobile E-Invoicing Speeds-Up Payments

Ability to create invoices anywhere and anytime.

Let’s start with the obvious. With mobile invoicing, you can create an invoice whenever and wherever you are. That means that while waiting to catch a flight, you can send and manage your invoices instead of waiting to get to your hotel, or even worse when you return home. Remember, the sooner you get an invoice out, the sooner you’ll get paid.

Funds are quickly available.

Can you believe that there was a time when it would take around a week for a payment to clear? Thankfully, that’s not the case anymore.

Most mobile invoicing platforms have funds available in your bank almost immediately or at least under two business days. However, as the blockchain and digital wallets become more embraced by users, funds could be in your account instantly since they’re eliminating the middlemen that slow down the payment process.

Flexible payment options.

In the past, you could only accept a check or a credit card. However, technology has made it possible for you to accept credit and debit cards, ACH, and even bitcoin. When your clients have more options to pay you, the faster they’ll pay your bill.

Send reminders.

Let’s say that you’re walking out the door for a business trip and you forgot about a couple of unpaid invoices. Instead of having that hover over your head for the next couple of days, you can send out a reminder with a ‘Pay Now’ while waiting for your Uber ride to pick you up.

Better yet, you can set-up automated reminders so that the invoicing platform will remind clients when invoice due date is approaching invoice or is past due.

Automate payments.

Speaking of automation, if you have a subscription-based business or long-term clients, then you should consider automating your payments. This means that instead of manually generating invoices, the customer is billed the same amount each month. This means that you’ll spend less time creating and managing invoices and more time making money.

John Rampton

John Rampton

John Rampton is an entrepreneur and connector. When he was 23 years old while attending the University of Utah he was hurt in a construction accident. His leg was snapped in half. He was told by 13 doctors he would never walk again. Over the next 12 months he had several surgeries, stem cell injections and learned how to walk again. During this time he studied and mastered how to make money work for you, not against you. He has since taught thousands through books, courses and written over 5000 articles online about finance, entrepreneurship and productivity. He has been recognized as the Top Online Influencers in the World by Entrepreneur Magazine, Finance Expert by Time and Annuity Expert by Nasdaq. He is the Founder and CEO of Due.

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More