Importance of Sending Your Customer Invoices on Time

There is a long list of reasons you need to be attentive to issuing your Software-as-a-Service (SaaS) customer invoices with a high level of accuracy. Billing accurately and delivering invoicing on time is a benefit to your customers as much as it is for your SaaS business. The SaaS industry is growing at a fast pace and you do not want your customers to see you as unreliable.

For those running the Accounting and/or Finance operations for a SaaS small or medium sized business – you suffer the excessive detail tracking and trying to manage many moving parts. SaaS companies arguably have more challenges in generating invoices timely and accurately. The typical multitude of standalone systems and spreadsheets and inputs to generate accurate invoices complicates accurate reporting and analytics.
Complex transactions and subscription management changes require high touch manual processing steps and handoffs to support billing accuracy. Tracking data elements in a variety of spreadsheets, timesheet systems, sales records, payroll systems, accounting software, payment vendor tools and more all collide and increase difficulty.
Issuing those monthly recurring revenue (MRR) invoices has many dependencies as well as benefits to you and your customer. Here is quick review of common scenarios that may sound familiar:

1. Accurate Invoices

Most of us have received an invoice or receipt that was overstated (or missing charges) or received unacceptably late. Your team moves into discovery efforts and chases the correction. This takes up already limited time and much effort. Once your team understands the error(s), their rework begins in order to correct and reissue an adjusted invoice or the hustle to issue a first invoice. Your customers may begin to doubt your business credibility and billing accuracy. Any hopes of collecting timely payment and recurring revenue from your customer is delayed.

2. Cash Flow Timing

Getting paid for your SaaS business offering is a critical part of running your small business. Your customer also has cash flow obligations as a cloud-based business. Issuing inaccurate or late invoices creates even bigger headaches if crossing over into a new fiscal year for you or your customer.  Have you ever missed sending an invoice to your customer on time? Timely cash receipts from your customers can help your cash positive results and be game changing for your business.

3. Predictability

Let’s face it — You, your auditors, the owners (or shareholders), business lenders and especially your leadership despise unpredictability. Surprises are an enemy of any business working to expand and grow. All businesses benefit from accurate financial analytics and forecasting. Billing is a significant factor in any GAAP compliant accounting and related income statements and balance sheets.

4. Accounting Close

Late recurring invoicing can cause you and your customer to have difficult or slow accounting close activities. The various setup, consultancy, and pricing fees in addition to recurring subscription costs make up complicated SaaS billings and add to manual burdensome billing efforts. Late invoices and payments and tracking the details complicate and lengthen your manual accounting close.
Further worsening the scene: incomplete billings, inaccurate records and slow payments all confuse accounting forecasts and analysis. You can risk having to reopen your accounting books if timing and accuracy are so wrong that adjustments and corrections are required. No auditor or CFO wants to experience that kind of reputation or unpredictability.

5. Inefficient Use of Resources

The degree of high touch and manual effort can become super time consuming  without automation. Most SaaS companies have accounting teams who struggle to streamline or reduce the volume of transactions and record keeping. Those responsible for accurate timely billing and payment collection can feel like they are participating in an “extreme sport” without better solutions.

Simplify Your Cloud Business with a Cloud Solution

  • Increase Invoice Accuracy: A SaaS cloud solution can make the process of accurate invoicing seamless Reduce or eliminate the redundant and cumbersome manual steps and achieve error free billing.
  • Achieve Invoice Creation Speed: Retire the myriad of spreadsheets and systems that do not tie data together automatically. Accelerate Accounts Receivable payments with faster invoice delivery to clients with reminders built into a cloud toolset.
  • Improve Billing Forecasts: The fewer manual and repetitive steps and lessened need for human intervention – the more you can focus on your company’s growth. With a solution built specific for forecasting, you can predict cash inflows from your existing customers with a click of a button!
  • Significantly Shorten Accounting Closes: Virtually eliminate errors, oversights, and rework. Integrated systems information can expedite reporting and provide a system of record that is synchronized with your accounting system (eg QuickBooks) that will alleviate pain points in your close process.
  • Automate Repetitive Tasks: Tie together single use systems to create the valuable comprehensive single source of truth accounting that any growing small to medium size SaaS business needs. Increase efficiency for your team and generate a positive accounting rate of return (ARR) in a short amount of time.

Companies in Silicon Valley and US/Canada Trust TrueRev

  • We understand the needs of your SaaS business compared to other business models because we are a SaaS business. We can offer a cloud-based solution set ready to meet your specific SaaS metrics and business needs.
  • We create value for your SaaS business improving your “back office” operations and SaaS metrics. Reducing effort for your team includes our ability to integrate seamlessly with cloud solutions like Intuit QuickBooks, Salesforce CRM and Stripe.
    We have the experience you can rely on to reduce risk and downtime to switch to our solution. TrueRev can help you make a change and be up and running in minutes.
  • Our solution helps Finance and Operations leaders like you regain control over efficiency and effectiveness. We have built the valuable integration and solutions that your business requires to scale as you grow.
  • Your team may even thank you… more fulfilling work can motivate staff as you reassign the highly repetitive mundane work to TrueRev. You may even benefit from decreasing employee turnover once your solutions are in place!

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It is TrueRev’s mission to simplify subscription management and eliminate the human element from repetitive work so there is more time for intelligent work. Every business that seeks growth can benefit from identifying and removing the manual repetitive work that adds no value. TrueRev can be a key solution to accomplish this much needed transition with speed.
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