B2B (business-to-business) invoicing describes transactions between two businesses. It differs from B2C (business-to-consumer) 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 B2B billing compared to B2C processes. B2B invoicing is more complicated, and a management team or committee usually oversees and approves the purchase. The average time B2B businesses take to send an invoice is about one month.

Companies have varying payment terms, but seven to thirty days is quite common. Most B2B businesses handle many orders on any given day. But the earlier you send the invoice, the higher the chances you will receive timely payments.

Statistics indicate that 42% of B2B invoice processing is through paper-based methods like checks. Traditional processes that rely on manual verification increase the workload. It also involves more staff and resources, raising the costs of sending invoices.

A better alternative to paper-based processes is B2B invoicing software. B2B invoicing reduces processing time and costs. Digital solutions also enable the business to meet compliance requirements.

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 
• Tax rates 
• 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.

Utilizing B2B invoicing software 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. 

1. 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 the invoice’s status. With B2B invoicing, you can verify the transaction through your ERP system. The software simplifies reconciliation and makes the end-to-end billing process more efficient. 

2. 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 requirements of a paper-based system can negatively impact your cash flow. With a SaaS invoicing solution you can automate repetitive aspects of the billing process.

3. Free your staff from manual workloads

Traditional B2B invoicing keeps your staff occupied with manual tasks. The process is monotonous and takes away the time your employees could be working on 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. 

4. 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, 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 checks? Software that generates B2B invoices is the best 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.