Why Small Businesses Are Moving Away From Spreadsheet Invoicing

Still sending invoices from a spreadsheet?

You are not alone.  For decades, a business of any size could open an Excel file and use a rudimentary Delivery Note template to receive payment.  Fill in the type. Save as PDF. Press send.

Done.

Here’s the problem:

That system works when you have 5x customers a month. It breaks down quickly when you have 50x. Numbers get transposed. Files get overwritten. Invoices get dropped.

And every mistake costs real money.

That’s why an increasing number of small businesses are moving away from spreadsheets and turning to real invoicing software.

Here’s what’s really going on…

What’s inside this guide:

• The Hidden Cost Of Spreadsheet Invoicing
• Why Your Delivery Note Template Matters More Than You Think
• 4x Reasons Small Businesses Are Making The Switch
• How To Move Away From Spreadsheets (Without The Headache)

The Hidden Cost Of Spreadsheet Invoicing

Spreadsheets feel free. That’s why so many business owners start with them.

But they’re not really free… You pay for them in time and errors.

Studies have found that 94% of business spreadsheets have mistakes. Ninety four percent! One misplaced decimal, an omitted row, and now you’re sending your customer a bill twice as high (or getting paid half of what you should).

Think about it:

Most spreadsheet invoices are created by copying the file from last month and altering some fields. Skip one cell and you’ll send your new customer your old customer’s address.

It happens more than anyone likes to admit.

The sad thing? Spreadsheets only know what you tell them. They can’t alert you if something looks fishy.

Why Your Delivery Note Template Matters More Than You Think

Here’s something most small businesses overlook…

The invoice isn’t half of your paperwork either. Typically, a delivery note exits with the goods before any invoice is sent. An ideal delivery note template specifies what you shipped, how many units were included and where they were shipped.

When there is a discrepancy between the delivery note and the invoice customers complain. They won’t pay until it balances out. And when both are kept in different spreadsheets discrepancies are inevitable.

This is why efficient companies store their delivery note template and invoices within the same integrated platform. As soon as the delivery note is issued the invoice retrieves identical products, quantities and customer information. If your business would like this functionality then you can manage invoicing with Prime Software and attach each delivery note directly to the corresponding invoice.

No retyping. No guesswork.

Pretty simple, right?

You’d be surprised how often this comes up. Invoice disputes are actually one of the leading causes of late payment. Almost 1 in 4 cited disagreement about what was delivered or invoiced.

Matching paperwork = fewer disputes = faster payments.

4x Reasons Small Businesses Are Making The Switch

Jumping on the “bandwagon” away from spreadsheets is not the motivation. It’s solving actual issues that are damaging your cash flow month after month.

Here are the four biggest reasons…

1. Getting Paid Faster

Late payments are a huge pain point. In Western Europe, 47% of B2B invoices are past due.

That’s nearly half of the money businesses are waiting on.

Spreadsheets can’t assist you. They don’t know when an invoice was sent, opened or paid. Follow up on late paying customers becomes a manual process that consumes hours each week.

Invoice software keeps track of all that for you. It highlights overdue invoices. It can even automatically send gentle reminders.

2. Fewer Costly Errors

Solid invoicing software automatically crunches totals, taxes and discounts. You never again have to worry about your VAT being incorrect. Your invoice numbers will always be sequential.

And since customer and product information only need to be entered once, there will be no more re-keying data. Eliminating that one task takes away the number one source of errors.

3. Everything In One Place

Quotes, delivery notes, invoices and payment records all reside in separate folders (or worse yet, computers) in spreadsheet land.

Finding an invoice from last March can turn into a 20-minute treasure hunt.

With proper software, everything sits in one dashboard:

• Quotes that turn into orders
• Orders that turn into delivery notes
• Delivery notes that turn into invoices

One click takes you from start to finish.

4. It Grows With The Business

If your spreadsheet processes 10x invoices per month, it will NOT scale to 100x. File slows down. Formulas corrupt. Collaboration becomes a nightmare.

Invoicing software is designed to grow with you. When you add new customers, products or employees nothing breaks.

That’s peace of mind you just can’t get from Excel.

How To Move Away From Spreadsheets (Without The Headache)

Switching systems sounds scary. But it doesn’t have to be.

Most SMBs can transition in a matter of weeks if you follow this simple guide:

1. Export your data: Take your customer list, product list and open invoices out of your spreadsheets.
2. Create your templates: Design your delivery note template, invoice and quote layouts with your logo and payment terms included.
3. Run both systems concurrently: For one month operate using both the new software and the spreadsheet side by side. This will help identify any gaps.
4. Turn off the spreadsheet: Stop using the old files once things are all matched up.

The magic is in the side-by-side step. It allows you to be sure nothing was missed before the spreadsheet is archived.

Keep it simple. Don’t attempt to transfer years worth of old records on day one. Begin with open invoices and current customers and migrate older records when necessary.

So, Is It Time To Retire The Spreadsheet?

Spreadsheets are a fantastic starting point. But they weren’t designed to power your growing business’s invoicing.

To quickly recap why small businesses are moving on:

• Spreadsheets are full of hidden errors
• Mismatched delivery notes and invoices lead to disputes
• Late payments are harder to track by hand
• Manual systems don’t scale

Simple. Link your delivery note template to your invoices. Automate repetitive tasks and let the software validate.

Less admin. Fewer mistakes. Faster payments.

That’s a win-win-win.

Frequently Asked Questions

What is a delivery note template?

Delivery note template is a pre-made document which has all the products being shipped to your customer. It normally consists of product name, quantities and delivery address, along with space for customer signature when they receive the order.

Is a delivery note the same as an invoice?

Incorrect. A delivery note is an acknowledgment of what has been delivered. An invoice requests payment. The two should correspond so that the customer can verify the order prior to payment.

Why do spreadsheets cause invoicing mistakes?

Excel sheets are dependent on keyboard input and copying/pasting. There’s no validation so one incorrect cell can alter a total without detection.

To read more content like this, explore The Brand Hopper

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