How to Automate the Billing Process

To automate the billing process, replace manual invoice generation, payment collection, and reconciliation with automated workflows. Manual billing often leads to delayed invoices, late payments, and errors in accounts receivable.

Move to a Digital Billing System

The foundation of billing automation is switching from paper invoices or spreadsheets to a digital platform.

Why it matters:

• Eliminates lost or delayed invoices.
• Ensures invoices are logged and trackable.
• Provides centralized storage with instant access.

Example: A law firm moving from manual PDF invoices to a cloud-based billing tool can cut processing time by 40%.

Standardize Invoice Templates

Automation requires consistency. A standardized template ensures that every invoice includes all essential information.

Checklist for a professional invoice template:

• Company name, logo, and contact details.
• Customer name and billing information.
• Unique invoice number for tracking.
• Itemized charges with clear descriptions.
• Taxes, discounts, and total amount due.
• Payment due date and terms (Net 15, Net 30).
• Accepted payment methods (ACH, credit card, etc.).

Tip: Standardizing fields makes it easier to auto-fill invoices with customer and transaction data.

Automate Invoice Creation

Once templates are ready, businesses can set up rules for automatic invoice generation.

Common scenarios for automation:

• Recurring billing: Automatically create invoices for subscription services, leases, or retainer clients.
• Usage-based billing: Trigger invoices based on hours worked, units sold, or project milestones.
• Bulk invoicing: Generate multiple invoices at once for clients with similar billing cycles.

Example: A fitness studio offering monthly memberships can automate recurring invoices on the 1st of each month.

Automate Invoice Delivery

Automating invoice delivery ensures customers receive invoices instantly, reducing payment delays.

Best practices:

• Send invoices directly from your billing software.
• Attach a secure payment link (“Pay Now” button).
• Track delivery status (opened, viewed, paid).

Example: An IT services firm can automate email delivery of invoices the moment a project milestone is reached.

Enable Automated Payments

Automated billing is most effective when linked with payment collection. Businesses can accept payments directly through invoices.

Payment options to integrate:

• Credit/Debit Cards – Fast but with higher fees.
• ACH Payments – Secure, lower fees, ideal for B2B.
• Digital Wallets – Convenient for small business clients.

Table – Pros and Cons of Payment Methods for Automated Billing

Example: A SaaS company can set up recurring ACH payments for long-term contracts to reduce transaction fees.

Automate Reminders and Late Fee Notices

Chasing payments can drain time. Automated reminders reduce overdue invoices and improve collection rates.

Suggested reminder schedule:

• Before due date – “Your invoice is due in 5 days.”
• On due date – “Your invoice is due today. Please pay online.”
• After due date – “Your invoice is past due. A late fee may apply.”

Example: An accounting firm sets reminders at 7, 14, and 30 days past due, resulting in a 25% faster collection cycle.

Automate Reconciliation and Reporting

Automation doesn’t end with sending invoices. Payments must be matched to invoices and financial reports updated.

Key automation features to set up:

• Auto-matching incoming payments to open invoices.
• Real-time accounts receivable dashboards.
• Automated AR aging reports (e.g., 30/60/90 days overdue).

Example: A manufacturing business can automate reconciliation by syncing billing software with its accounting system, eliminating hours of manual data entry.

Integrate Billing Automation with Other Systems

For maximum efficiency, integrate billing software with your existing tools.

Possible integrations:

• CRM – Sync customer data to personalize invoices.
• ERP – Link billing with inventory and supply chain.
• Project management tools – Trigger invoices at project milestones.

This ensures that billing is seamlessly tied to your business operations.

Automate Billing with DepositFix

DepositFix helps businesses automate billing with integrated invoicing, online payments, and CRM systems. With DepositFix, you can:

• Send invoices with built-in payment links.
• Automate recurring billing for subscription clients.
• Collect ACH or credit card payments securely.
• Sync invoices and payments with your CRM.

This way, businesses reduce admin work, speed up collections, and get better visibility into accounts receivable.