Business-to-business (B2B) invoicing describes transactions between two businesses. It differs from business-to-consumer (B2C) invoicing, where the transaction is between the company and its consumers.

B2B billing is a common feature in any modern company's supply chain. The business may sell to wholesalers or manufacturers. They are typically high-value transactions that involve large volumes of goods. Therefore, B2B invoicing is more complex than B2C invoicing.

Here are some tips on how to improve your B2B billing process.

It may take more time to complete a customer's B2B billing compared to B2C processes. B2B invoicing can be more complicated, as service delivery data needs to be collected, billable hours need to be tracked, and more complex product configurations are considered. The average time B2B businesses take to send an invoice is about one month.

Too many organisations continue to process invoices manually. That means the data is collected and entered into the invoice software by hand. These traditional processes that rely on manual effort increase the workload and likelihood of error. This raises the costs of sending invoices, and further delays sending them. 

Companies have varying payment terms, but seven days to 30 days is quite common.  Businesses handle many invoices per month, and usually process them as received. So the earlier an invoice is sent, the faster the receiver can process and pay it. 

A better alternative to manual processes is automated B2B invoicing software. A B2B invoicing platform reduces processing time and costs. Digital platforms also enable the business to meet compliance requirements, including those for electronic invoices.

B2B transactions are usually high-volume and recurring. Errors in your billing process can delay payments and affect your cash flow. Therefore, the invoice should have the correct details and structure to avoid unnecessary processing costs. A B2B invoice should include:

• Your business name and address
• Customer name and contact details
• Invoice number
• A detailed list of goods or services delivered
• Date of invoice creation
• Invoice due date
• Value-Add Tax (VAT)
• Currency
• Total cost of goods or services

The structure can vary, but you should have the essential details included in the invoice. Since B2B businesses handle more orders and high-value transactions, it is advisable to use a template. A template can reduce the time it takes to generate the billing documents.

Utilising B2B invoicing software platforms offers many benefits for your business. From reduced invoice processing time to cost reduction and more accurate details, your business invoicing process will be streamlined.

• Improved accuracy and enhanced efficiency

All transactions are visible through online B2B invoicing services. Paper-based processes typically rely on disconnected systems, making it challenging to confirm an invoice's status. With B2B invoicing (and specifically electronic invoices), you can verify the transaction through your ERP system. The software simplifies reconciliation and makes the end-to-end billing process more efficient.

• Reduced processing time and cost

Paper-based B2B invoices involve manual verification, resulting in a lengthy process. Due to the inefficiencies and errors, the approach makes it challenging to verify transactions on time. The more mistakes in the billing cycle, the more time it takes to complete the process.

The time and cost burdens of a paper-based system can negatively impact your cash flow. With a software-as-a-service or SaaS invoicing solution you can automate repetitive aspects of the billing process.

• Free your staff from manual workloads

Traditional B2B invoicing keeps your staff occupied with manual tasks. The process is monotonous and takes away valuable time that your employees could be dedicating to  tasks that support your strategic goals.

A billing solution simplifies the process of sending and generating invoices. You can include multiple payment methods and currencies to facilitate cross-border transactions.

• Boost your business image

Errors in your billing process not only delay payment but can also impact your businesses' image. With a paper-based system that is slow and error-prone, more customers will be contacting your business to inquire about the status of the invoice.

A digital B2B billing solution reduces the risk of disputes due to its greater efficiency and reduction in errors. Too many mistakes in a paper-based process could affect your relationship with other business clients. B2B invoicing can secure your standing in the industry.

Do you want to avoid chasing down payments? Software which streamlines B2B invoice processing is the ideal solution. You don't have to worry about missed payments or errors that risk ruining your business' reputation.

Contact us online today to learn more about acquiring B2B invoicing software to boost your bottom line.