Small business invoicing In the world of invoicing, especially in relation to smaller businesses, the sheer number of guides offering suggestions on best practices is astounding. You wouldn’t think there would need to be so many resources all saying the same basic things. However, when you look at just one piece of advice from these guides, “Don’t Use a Paper System” it quickly becomes evident why there are so many small business invoicing guides saying the same things to readers. Especially in the digital age, that advice seems like a no brainer. Depending on your source, the digital age started either in the 1970s or 1990s, either way, we’ve had 3-5 decades to convert business practices. Why would anyone still be using paper? Aside from the fact that many businesses are still working with paper invoices (surprisingly, it’s not just the small startups, you’ll even find paper at some fortune 500 companies), this point isn’t just about the format or the environment, but about the efficiency and security of the format. A business can use paper invoices and keep perfect track of them, keep them properly secured and stored, track them all with astounding accuracy and get paid on all
Invoice fraud and data breaches are on the rise. Companies are losing real money due to cybersecurity. Here are some stories where fraud is happening and tips on how to prevent your business from becoming a victim. Invoice Fraud Explained Today, most invoices come into a business via email PDF or fax with a high-volume of invoices processing through the accounting department at any given time. Criminals are taking advantage of this analog industry by sending in fake invoices with an e-mail address that "appears" to be coming from a business partner with a wire addresses that exist at a legitimate bank. They are posing as vendors or partners in order to convince businesses to wire large amounts of money to a certain location. Often times, this location is an offshore account, where criminals can then siphon money for services that they never actually provided. The entire business e-mail scamming industry has more than doubled recently, growing 136% percent between December 2016 and May 2018. While the method isn’t always successful, criminals targeted $12 billion worldwide from October 2013 to May 2018. Google and Facebook tricked out of over $100 million There are few technology companies as well-known and influential as
What exactly is invoice financing? Let’s face it, waiting for 30, 60, 90, or even 180 days or longer to get paid by your customer places a huge strain on your operation. You need to be able to make your payroll, buy supplies, and pay the lease, so having cash on the books is important. Invoice financing is a way for businesses to sell their unpaid invoices to another company in exchange for a lump sum payout. There are several ways to sell your invoices The first and most common way for small and medium-sized businesses to finance their invoices is a practice known as factoring. Factoring companies usually like to take your full book of receivables and pay you a fixed rate. Some smaller companies prefer this service, as it essentially outsources their collections department. For small businesses, the downside of factoring is the cost, which can range to 30% APR, and increase when a customer fails to pay on time. Alternatively, invoices can be sold, such as to a bank, asset fund, or hedge fund. These types of transactions can also accelerate cash flow, but the collections process is not outsourced. The business must collect when the invoice matures, pay
Have you heard the buzz word "blockchain" used in conversation and wondered to yourself....what is all this hype about? Or better yet, what the heck is the blockchain?