Basic invoice management fundamentals for every business owner

Point of sale (POS) systems have become the platform that retailers rely on to integrate sales analysis, inventory management, employee scheduling, accounting, and other operations. One critical function that has been missing from the integration for many stores is invoicing. 

Receiving timely payment for outstanding bills is more vital to retailers than ever in light of COVID-related changes to the shopping experience. Now, basic invoice management is available via cloud-based and mobile POS systems that make invoicing faster, simpler, and more accurate than manual approaches.

How invoice processing via POS helps boost retailers’ bottom line

Several common retail scenarios illustrate the benefits of creating and processing invoices using features built into their POS system:

Companies often treat their clients and employees to lunch or dinner, but managers who submit printed receipts to the accounting department for reimbursement may encounter unexpected delays. However, by using a POS system that supports house accounts, an invoice for the meal can be generated automatically that meets all accounting department requirements.Catering businesses that host holiday parties and other events for businesses can use the invoicing features built into their POS system to generate an invoice that serves as a quote for the event and includes all details of the proposal, including the offer’s expiration date. Once the offer is accepted, the proposal becomes the invoice for the event.Office supply stores typically have several business customers who they deal with regularly. The stores’ POS systems are able to link inventory to orders in the invoice and automatically add the customer’s shipping address, apply bulk discounts, and link directly to the retailer’s payment processing systems.

To support mobile invoicing, the POS system should support swiped credit and debit cards as well as chip cards and contactless payment methods. It must also allow employees to access the information they need to answer customers’ questions, and it must be reliable and easy for employees to learn and use.

The must-have features of a POS system with integrated invoicing

POS-based invoicing provides retailers with the key features of a standalone invoicing product at a much lower price and simpler implementation. These are the core functions of basic invoice management as a component of a POS system:

Generate any number of custom invoices.Process recurring bills and apply penalty fees automatically.Gather and manage customer data, and make customer purchase histories available to managers and employees.Accommodate customers’ preferred payment methods.Work seamlessly with other business processes and POS components.

By making invoice creation and processing a part of their POS systems, retailers improve the efficiency of their business by completing the task without having to open a standalone program. This also allows billing to become a natural part of the business’s end-of-day routine.

How integrated invoicing helps customers and retailers alike

One way for retailers to ensure they receive the payments they’re due in a timely manner is by making it as easy as possible for customers to understand and record the invoices they receive. Two POS features in particular help businesses achieve this goal:

Cloud-based invoicing allows customers to make and pay for purchases via the store’s website or custom application. The systems let customers view their order histories, change their orders prior to delivery, and reconcile their financial records more conveniently. Doing business in the cloud facilitates the transition to an omnichannel marketing strategy that saves retailers and their customers time and money.Integrated business processes link invoicing to fulfillment, payment processing, inventory tracking, accounting, and other key retail operations. The systems facilitate monitoring payment status, generating sales reports, and creating a secure and complete customer information database.

Customers appreciate it when retailers provide them with invoices that are clear, complete, and accurate. Invoices are one of the most important means of communicating with customers, so it presents retailers with an opportunity to generate goodwill that translates into loyalty and positive word-of-mouth marketing. By avoiding problems with invoices, businesses are able to receive payment much faster.

Mobile invoicing: create bills at time of sale from almost anywhere

Even before the arrival of COVID-19 restrictions, the trend in retail was to go to the customer rather than waiting for the customer to come to you. Cloud-based POS systems with basic invoice management let businesses generate invoices when and where the transaction occurs. Invoices can be emailed to the customer and set to recur monthly or at some other interval.

Invoices for a single sale may list several itemized charges. This distinguishes invoices from statements, which itemize the charges and fees for several of a customer’s sales, as PCMag.com explains. The goal of a statement is to tell customers the overall status of their accounts for a specific billing period.

Use of a POS system that integrates basic invoice management prepares retailers for one of the most important trends in accounting: paperless electronic invoicing that stores the transaction information in machine-readable form. TechRadar writes that electronic invoicing makes accounts payable processes faster, more efficient, and less expensive. In addition to reducing late payments, electronic invoicing sometimes causes payments to be received early, which helps ensure a steady cash flow.

Making the shift to use of invoicing features integrated with a cloud-based POS system reduces the amount of time retailers spend on administrative tasks so they can keep their focus on meeting the needs of their customers. Cloud-based invoicing allows businesses to operate wherever the customer may be, and easily access accounting features at any time. Invoicing has gone digital, and that’s good news for customers and retailers alike.