Cloud-based accounting and invoicing systems are relatively new to the larger chunk of business with only larger corporations having previously had access to it when it was not as affordable as it is today. As such, even as a very thoroughly informed and aware professional, you might have some questions about invoicing software. Here are the most popularly asked five questions that come to Dext from business owners:
What is the difference between receipt scanning system, online invoicing system/ invoicing system, and accounting system?
Receipt scanning systems, online invoicing system, cloud-based Invoicing/ accounting, and accounting system; also bookkeeping systems are all synonyms for a similar product. Depending on your role in the business you might at best use a different version of the same product. For example, bookkeepers would use Dext Precision whereas a business owner and team would use Dext Prepare.
A large chunk of what these solutions can do overlaps – for example, invoice generation, receipt scanning, sorting and analyzing, live access, and spontaneous insights exist across the board.
Dext Precision would however also let a bookkeeper check the health of a potential client’s boons before giving them a service rate or retainer rate.
Dext Prepare might be variously referred to as invoicing software or accounting software.
Why is a bookkeeper or accountant needed with a modern cloud-based invoicing system where my invoices are generated automatically and my books are updated automatically?
Machine learning and artificial intelligence have their limitations. You do need an accountant to be sure that data is indeed flowing as desired from your business bank account to your books of accounts. He or she must ensure that there are no holes or gaps in the data. You do need a human being pulling the reins so to say, putting systems in place and knowing their way around numbers.
Do these cloud-based invoicing systems like Dext integrate with other bookkeeping software?
Yes, Dext integrates seamlessly with other popular bookkeeping software.
To whom should cloud-based invoicing system access be extended to?
Cloud-based invoicing systems and accounting software should be extended to
- All employees who have a sizable data entry burden that interferes with their ability to chase profits for the company
- All employees who spend company capital
- All employees who rake in company revenue
- All employees who are in decision-making roles where decisions are linked to the company’s finances
- All employees who approve expenses but whose time could be better used elsewhere
- The business owner/founder of the company
What is the need for invoicing software or a cloud-based invoicing system? We have been preparing our own invoices for years with no problem.
A cloud-based invoicing system gives you much more professional invoicing SOPs such as:
- Standardized invoices
- Alerts when invoices are due
- Automatic generation of invoices
- Prompts when clients open invoices
- Prompts when clients settle invoices
- Alerts when invoices become overdue
In addition they also
- Reduce data entry burden because they can extract data from a scan of any document
- Automate the flow of data from your business bank account to your accounting books
- Centralize all your documents and data so you can retrieve information easily
How can an invoicing system possibly make my business more profitable?
You can always opt for a free trial or a free demo with Dext to find out hands-on, how a cloud-based invoicing system drives improved business efficiency and therefore higher profitability!
Here’s how it’s done, in short:
- You and your team save time on data entry because the software comes with Optical Character Recognition tech that is able to extract data from bills, receipts, and invoices. The data is presented as digital text that can be copied or edited or exported as desired.
- You have error-free books because human error is eliminated thanks to the automation of data flow from your business bank account to your books.
- You get spontaneous business insights on factors like where your expenditure is exceedingly high, or where your leaks are.
- You also get insights on your most profitable clients and your least profitable clients, and can therefore negotiate accordingly.
- Live access to books is guaranteed since data flow from your business bank account to your books. You don’t need to wait on your accountant or bookkeeper.
- The cloud-based accounting systems also come with a partner app for your smartphone. Using the partner app, you can access your books on the go. Make fully informed decisions based on your cash flow and current financials.
- Security is guaranteed with cloud-based invoicing systems. Service providers like Dext secure your data with double firewall protection.
- You’ll also never miss a payment again because you get reminders when an invoice is due when payment becomes overdue and so on. Standardized, professional-looking invoices are the icing on the cake.
- If you use Amazon for distribution, you can automatically link your account so that each and every little sale is tracked without fail.
I have my doubts about the security of my data when I’m not the one securing it. What if some hacker gets into sensitive financial data when I opt for one of these modern invoicing systems?
This is a very valid concern. However on-premise data security is more expensive and less robust unless you’re spending an arm and a leg on it. It is also no safeguard against man-made disasters and natural calamities. You can safeguard your data from prying eyes but what about fires and earthquakes? When saved to the cloud your data is automatically safeguarded from everything – prying eyes and man-made disasters and natural calamities. Double firewall protection ensures privacy and virtual storage is the ultimate safeguard.
It is also vital to the success and reputation of the invoicing system that there are no security breaches. Hundreds of companies, many large corporations (with huge secrets), also place their trust in cloud-based invoicing system solutions. Hence, you should place your trust in them as well.