How to accelerate invoicing and payment in your recruitment agency with an invoice management system

What is an invoice management system and why do you need one?

In these ever increasing cost-conscious times your recruitment agency really needs to be on top of its game when it comes to the process of invoicing and payment. This puts efficiency and eliminating unnecessary overheads front and centre

Software technologies are really good at process efficiency, as well as reducing the drudge and errors that are associated with manual, paper-based processes. This is achieved through software automation and when applied to billing the clients of your recruitment agency it is known as invoice automation, and software that includes this capability is often known as an invoice management system.

An automated invoice management system is a key part of the digital transformation of a recruitment agency. Using appropriate recruitment invoicing software bakes in efficiency of the finance function of your business and prevents outdated approaches to back office and admin from pulling down on your bottom line.

In keeping with the well-established trend for cloud business applications, an online invoice management system eliminates the ownership costs associated with on-premise solutions, such as servers, internal IT team support and maintenance charges.

What is the invoice management process?

Typically, the method followed, or management process used to create, deliver and oversee the payment of invoices has these key steps:

• Invoice generation – RecruitmentStaffing agencies supplying temps, freelancers and contractors usually bill clients based on timesheets used to record the hours staff have worked
• Invoice delivery – RecruitmentStaffing agencies need to deliver the invoices to the finance departments of their clients – usually the dedicated accounts payable function
• Overseeing payment – Recruitmentstaffing agency clients may have different payment terms, including time limits before which payment becomes due, and this needs to be watched to make sure clients do not exceed payment term deadlines

What are the features of an invoice management system?

The general features of an invoice management system are likely to include:

• One click invoicing – Generate invoices from timesheet data in a single click
• PDF invoice creation – Automatically generate PDF versions of invoices
• Multiple invoices in a click – Batch processing invoices for each client
• Automated send – Automatically send invoices to accounts payable email addresses
• Localised for a globalised world – Multi-currency-ready and tax system compliance for different countries
  Control aged debt – Alerting to payment terms deadlines being exceeded

What are the benefits of an invoice management system for recruitment agencies?

The main benefits of an invoice management system include:

• Rapid invoice to pay – Faster invoice and payment process
• Error-free – Turns timesheet data into accurate invoices, every time
• Cash efficiency – Improved cash flow and working capital management
• Stop servicing debt – Reduced aged debt and the time wasted chasing payments

Accelerate your recruitment agency back office with the invoice management system from ETZ

Many might question the need for an invoice management system. And when invoice volumes are low, it may be possible to muddle along without one. However, in the true entrepreneurial spirit of the recruitment industry, should you have ambitions for your business, a good online invoice management system is a cornerstone for growth.

ETZ’s leading timesheet, invoicing and payment platform is purpose-built to streamline the recruitment back office. To find out more about releasing efficiency in the back office, call us on 0800 311 2266 or book a demo.