Invoicing, or billing as some call it is an important process in any business because it produces the document that establishes how much money the customer owes the vendor. It is expected to clearly state the service rendered or the product shipped, unit cost, quantity, tax payable and the total amount the customer/client is obliged to pay. This is the case of a simple bill/invoice. There are however complex invoices with more details that require extensive inputs to produce an invoice that is perfect and acceptable to the receiver for processing payment.
Complexity in Invoicing
IT Staffing business is one of several activities that is reputed to have a complex billing procedure where the number of inputs required to produce the invoice is large, and scattered in multiple locations even within a computer. Sometimes information from paper files, accounting software, emails, contracts, timesheet reports and amended contracts all need to be consolidated at a single point before the invoice is manually prepared. The lack of even a single bit of information can stop the billing process midway.
Staffing companies are reputed to lose substantially by under voicing due to multiples of reasons. When this happens, their bills/invoices are silently paid by the customer and only during an audit check will the facts be revealed. By the time the folly is discovered, it becomes too late to seek an additional payment. In the event of the opposite happening – over invoicing, customers are most likely to discover the error and ask for a revised invoice. This again means substantial loss for the staffing business operator.
Invoicing Automation Software
One of the major tools available for lessening the impact of errors due to manual billing is billing automation software. The most versatile of billing automation software are offered as cloud-based SaaS (software as a service). Here are a few advantages (just a few for illustration) that they give staffing companies.
Direct access for consultants/subcontractors to upload timesheets
Automated contract compliance terms for invoicing purpose
Send automated delinquent reminders to contractors for timesheet submission
Categorization of invoices for paying taxes (avoid overpayment)
Access to dashboard for overall monitoring of billing
Avoids missed invoices and errors in invoices
Automate the accounts receivable process and improve cash flow
There are few account automation applications especially made for the IT staffing business in particular, but a careful internet search can help you land on the right one.