As far as small business payroll software goes, the prospect of a free online solution is attractive. However, this promise often comes at a cost that many businesses find unacceptable – in this case, giving up your data to third parties.
Business owners are always seeking new ways to increase revenue. Switching to a payroll and billing software solution can provide an excellent opportunity for growth. Payroll management is one of the many services that run a successful company, but it comes with great responsibility. The wrong move could have serious financial implications.
Keeping your business on track means constantly looking for new opportunities to increase revenue and lessen expenses so you can be more profitable. Many small business owners look at shifting their focus from billable hours to recurring subscriptions as a way to expand their offering—and it’s not just B2B businesses that are dabbling in this area; both B2C companies and service providers are shifting their billing models, meaning that more are looking at the benefits of going to a subscription billing model. And it makes sense.
Subscription billing is an excellent way to maximize your revenue because you gain access to the cash much sooner than under a billable hour system. Plus, subscriptions are typically more profitable since you can increase or decrease prices much easier so the customers don’t feel slighted by coming up with new pricing schemes every week or month—a move that could anger loyal customers and drive away potential ones.
And another benefit of shifting your business model to recurring billing? Having one central place for all client billing information, whether monthly subscribers or clients who pay their accounts via invoice. This means that instead of sending out bills individually, client data will already be stored in one secure location. You’ll be able to easily see when payments are due, send out reminders if necessary, and even track how long it takes for invoices to be paid. This can help you identify which clients take longer to pay their bills to know who to approach for credit extensions in the future.
One system that can provide small business owners with these benefits is the cloud-based payroll software solution. It offers a low-cost way of paying employees that doesn’t require an accountant or laborious paperwork—and it’s easy and fast too! The online service makes use of the direct deposit. It allows you to seamlessly manage your company’s accounts payable, meaning you’ll know exactly when payments are due and where they’re going every step of the way. Instead of waiting weeks for your funds to clear, all payments will be deposited directly into your account in one business day.
This is a far cry from the way the traditional billable hour software solution works. You typically have to mail out bills manually and wait a week or longer—if not longer—for them to be paid. And when you factor in late payment fees for clients, you quickly realize how much money can slip through your fingers simply because you don’t have access to an efficient billing system.