If you’ve ever been self-employed, even for a short period of time, then you know how annoying it is when your invoices aren’t processed. Chasing payments months after you completed the work is not fun. According to Fortune, some 35% of freelancers in New York have suffered late payments.
Even when you end up taking out a loan and using a personal loan calculator for your monthly budget, credit can only take you so far. Unless your invoice is paid you will run out of money.
During those dark times, you’ve probably spared a thought for the accountant and wondered how they could be so disorganized.
If you’ve then gone on to become a business owner yourself you’ve probably realized the reality. Invoicing is a tricky and time-consuming business that can often go wrong. Invoice approval, however, is an easy way to speed up the process and save your bacon.
1. Self Employment:
The number of people who are self-employed is at record highs. In the U.S in 2015 there were 15 million people or 10.1 of all workers in the U.S who are self-employed. All of these people require their invoices to be approved and processed.
As remote work becomes more and more common so too has freelance work taken off. More and more people realize they can supplement their income.
Your business can take advantage of having a freelance workforce but only if you keep your workforce happy and invoice approval software is one way of doing this.
2. Workflow Protocol:
This is s because an automatic invoice approval workflow means there are set standards and guidelines that are always followed. The worker must usually file his invoice through an electronic system. Sometimes the invoice is generated automatically from the details in the commission.
Following on from this the system can then track when the person who has commissioned the work has approved it. The clock can start ticking as to when that person should be paid and the freelancer should be able to see when their invoice will be paid.
Late payments can become a thing of the past. This is because payment no longer depends on an over-worked and harried accountant to oversee the approval process.
Equally by linking the invoice approval software up to the main workflow and accounts systems, you can ensure the efficiency of your business. The invoice approval system can also ensure that invoices are automatically paid out but they never exceed what the company has the capacity to pay.
3. Invoice Approval Works:
Invoice approval solves a host of problems for an employer. It stops lazy and inaccurate record keeping by automating the whole process, also reducing the work of the accountant. This is great and means invoices are easily found and traceable if a dispute arises.
It also means the accounts team can spend less time e-mailing irritated freelancers as an electronic system means they have more information about where their invoice is in the system and when they are going to get paid.
But it also makes your company seem more professional and someone that a freelancer wants to do business with.
If you’re interested in more ways you can improve your business, check out our business section for further advice.