The concept of billable hours is changing with the times we live in. Clients are no longer charged based on estimated time, and employees are increasingly working outside of the traditional model, where wages and hours are static. Increases in both inflation and running costs means that businesses today need to make sure that they are keeping up with the pace of technology to keep their profitability and cash flow high.
Did you know that mobile apps save small business employees millions of work hours per year? According to a study by the Small Business and Entrepreneur Council, small businesses that utilize mobile apps for their operations save more than 370 million hours per year, and 725 million employee hours!
When it comes to accounting software, the majority include basic timesheet and invoice tracking. These features are hugely beneficial to your business’s capital and time management, but many small business owners find that they need software integrations to get the job done just the way they want. Here are three reasons why software integration is so beneficial to your Invoice Tracker software:
Time Tracking Software Helps Increase Profit and Improve Capital
Small, seemingly insignificant things can add up quickly, and decrease profit. Employee time theft–an industry term used to describe time an employee is paid for but have not worked (either intentionally or in error)–can include: time tracking mistakes, frequent breaks, inflated hours, and more. It was reported in a survey by Software Advice that 43 percent of employees exaggerate their hours. This matches the American Payroll Association’s research that estimates 4 hours and 5 minutes per week are stolen by the average employee.
Most companies experience some form of time theft and in most cases this is due to errors like poor time tracking or insufficient practices. This time theft is generally small, but costs can add up quickly. Thankfully, using software to track timesheets will improve accuracy, putting the accountability on the employee and reducing clerical errors.
Inaccurate time tracking is more common than business owners realize and is one of the main causes of lost revenue. Employees or contractors may be unaware of how to track their time down to the minute, and perhaps are not estimating their hours efficiently.
By tracking time accurately, as well as evaluating past jobs, you can rest assured that your estimates will be spot on. You’ll also be able to review tracked hours throughout the project to ensure you’re on budget. If you find that you are straying off-course, you’ll have the ability to renegotiate the project before it’s too late.
Apps like Time Tracker + Billing by eBillity integrate with other software to extend functionality. The two-way data sync allows your accounts to work as one: sharing information to help your business track both time and expenses with ease.
Invoice Tracking Apps Improve Profit Margins
When the work you have provided is completed, you send your customer an invoice, and wait to be paid. But a week, two weeks, sometimes a whole month can pass without payment. Instead of constantly having to chase down late payments yourself, your invoice tracking software can automate customized emails which are triggered by dates you input. The sooner you send out reminders, the faster you get paid.
The Payment Practices Barometer Americas report from 2017 states that the average payment duration was 61 days, and more than 92 percent of businesses reported that their customers sent late payments. The annual regional report from Atradius had similar findings. For small business owners, this number can be even higher. A study of Xero users found that approximately 60% of invoices are paid late, with more than a third two weeks late.
If you find that you have an invoice that is more than 90 days overdue, you might consider enlisting help from a collections agency. However, even though your chances of payment may rise slightly, you will still have to consider the fee that you will pay for their services. The fact also remains that you may never be paid on that original invoice. You may not want to gamble on using your own revenue without a guarantee.
Of course, unpaid and overdue invoices are unavoidable, but there are many ways to lessen their probability. Apps like Invoice Tracker sync with other accounting software so that your invoices are automatically imported. With just a few steps, you will be able to create a timed sequence of invoice reminders. This integration is easy and effective. Activate your own collection, and get paid faster.
By adding structure to your AR and automating the process you’re able to save time, maintain client relationships, and increase your profit margin.
Add-ons Provide Crucial Data
By connecting add-ons to your current accounting software, you will gain valuable and comprehensive insights to key functions within your business. These integrations will allow you to make more informed decisions and choices to help your business increase its profitability and improve your running costs.
With time tracking apps you’ll be able to quickly discover where your time goes. The reports generated from your information will show you data which can reveal your most productive employee, or how much time your business has spent on each client. Further analysis will allow you to identify which clients are making – and costing – you the most money.
Invoice tracking software informs the state of your cash flow in real time. With the built-in reporting you’re able to see what’s been paid or is still outstanding, and what’s actively being collected. You can also easily check your reminders to see which clients have read your emails.
Getting started is simple
eBillity provides both timesheet and invoice tracking software that integrates seamlessly with Time Tracker + Billing, Xero and QuickBooks. If you are already using Xero or QuickBooks you can add-on Invoice Tracker and try it out for 30-days for free. If you are not already using accounting software try our Time Tracker + Billing.