The Maturing Landscape of Billing Software for Accountants
January 13, 2022
As small businesses mature, so do their accounts receivable operations. Business growth inevitably means more money coming in. And while a business might have several transaction portals, they also need billing software for accountants to execute invoicing tasks. Thankfully, the landscape for digital billing software is growing mature in the era of ecommerce and global synergy.
With no shortage of billing software out there, businesses need to ask themselves which ones have the features and capabilities that are vital to their accounting operations. It’s not enough for these platforms to issue invoices and provide a means of payment—they also need to account for the many complexities of business operations at the global level.
Here’s a closer look at the maturing landscape of accounting software and what, specifically, businesses need to be aware of as they select invoicing and payments software.
Traditional apps include major payment options
Even the earliest and simplest billing software focused on the most important objective: getting paid. To that end, they offered (and continue to offer) numerous payment rails. These can include any or all of the following:
- Automated Clearinghouse (ACH) transfers
- Wire transfers and international wires
- E-checks and direct deposit options
More modern and sophisticated billing software will include these major payment options, as well as those rising in popularity and convenience. Digital wallet integration, for example, enables businesses to bill customers and receive payments directly into a digital wallet.
The mode of payment becomes especially important when considering the global economy. ACH transfers might not be possible when dealing with a partner halfway across the world. Likewise, some businesses may prefer to use digital wallets to maintain several forms of currency, to avoid exchange fees when paying those funds forward in the future.
The rise of third-party integrations
The concept of an “accounting tech stack” is something that’s quickly gaining traction in the modern age of digitized business operations. It’s not enough to have accounting software like QuickBooks or Botkeeper—businesses also need support software that creates synergies with these core platforms.
The ability of billing software to integrate with other software and platforms in a tech stack is imperative. Having billing operations siloed doesn’t help accountants—and, in fact, creates more work for them. Instead, they need software that’s smart enough to communicate with core accounting programs, to ensure billing data is automatically tabulated and organized in the company’s general ledger.
This demand for third-party integration is also important as the ecosystem for services grows. Setting up billing subscriptions, attaching special terms to invoices or interfacing with different online portals all requires a level of integration that demands API access and the ability to customize connections. Thankfully, most modern billing software for accountants offers such functionality. Without it, there wouldn’t be much point to using them!
Optionality is an important factor for accountants
When it comes to the billing software itself—its features, capabilities and UX—accountants have their fair share of options. It’s up to every accountant to understand the scope of the business’ billing operations and to choose software that supports them. For example:
- One-time vs. recurring payment automations
- Customer profiles for rates, terms and stipulations
- Ability to auto-calculate fees, such as exchange rates
- Instant reconciliation to QuickBooks or similar
These features and numerous others—in conjunction with diverse payment rails and integration synergies—are what distinguish top-tier billing software for accountants from those struggling to innovate. And, when it comes to functionality, accounting professionals will quickly learn which programs are helpful vs. which ones are “good enough” or even a hindrance.
Transparency is paramount in billing software
Above all—and any accountant will agree—transparency is vital. Your choice of billing software needs to provide full visibility at all times. This goes beyond registering transactions and sending them to the general ledger. In the case of software like Veem, it means showing the status of payments in transit, for real-time visibility into where, exactly, a payment is. This feature is paramount in today’s commercial landscape, where commerce happens in real-time, all the time.
If your business is exploring billing software for accountants or expanding the accounting tech stack to include third-party software that makes it easier to do business globally, make it a point to test drive Veem.
Schedule a demo of Veem today and see for yourself how important robust billing software is—especially if you need to account for an increasing number of cross-border payments.