Predictive future of Billing and Invoicing with Blockchain

Posted Date : 04-December-2018
future of billing and invoicing

We are living in a generation where we witness technological advancements every now and then. From data science, machine learning and artificial intelligence to augmented reality and virtual reality, cutting-edge technologies have paved way for innovative possibilities. These technologies have forayed into various sectors and led to enhanced convenience, productivity and efficiency.

Though the blockchain technology was introduced some years back, it is now this technology is making waves in various sectors of the economy. There have been attempts to integrate blockchain into the billing software. The technology has shown potential to address issues faced by several industries including fraud, security and the storage of immutable data.

t can provide transparency into the payments. Furthermore, this technology can cut the processing cost of each transaction made to and fro a business by eradicating the need of a middleman. Not just this, but the technology can provide several others perks to the businesses.

Blockchain and billing software

The blockchain technology can totally revolutionize the way invoices are created, transactions are processed as well as validated, and payments are disbursed. Blockchain technology uses ‘blocks’ that records transactions. Cryptography secures each block and links it to the transaction that is visible to all the concerning parties thereby mitigating the need of an intermediary.

There is a decentralized blockchain network that holds all the documents. The documents can then be accessed and modified by different users and a record of all the modifications is also maintained for the information of all the concerned users. Thus, the technology is transparent and tamper-proof.

Its integration into a billing and invoicing software will facilitate seamless payments, such that all the payments made from the customer’s end will automatically get credited into the digital wallet of the company. It would make it much easier to keep a track on the transactions and to access the transactions history as and when required, by simply downloading it.

Blockchain technology offers solutions to common B2B billing problems

When the B2B businesses take the help of other payment merchants to accept or make their payments , they are required to pay some transaction charges to the merchants. Since the system is managed by the merchants or banks, they may demand unfair charges in lieu of their services from the companies. These transaction charges may vary from 0.5 % of the total amount to as much as 7% of the total cost. Paying so much for the payment can be a concern for the SMEs. However, the integration of billing and invoicing software with blockchain technology can eliminate this problem.

The blockchain-poweredbilling software will offer direct peer-to-peer contact that facilitates direct payments without any mediator. So, the businesses can save the transaction fees and get paid more effectively. In fact, the blockchain-powered billing and invoicing software come with rewards and other offers where the users will receive monetary benefits for making transactions. So, instead of paying, business will get paid for each transaction, which in itself is a bonus for all the businesses.

Another problem that the businesses face is related to the security of the transaction details. Again blockchain-powered billing software can address this issue effectively. The software offers fast, safe and reliable payment ecosystem.

Billing and Invoicing with Blockchain will lead to increased visibility

The traditional method of invoicing and billing is opaque and there is no provision for auditing or tracking. With the traditional method, the debtors can easily delay the payments and there are even chances that the claiming demand is either lost or held up.

However, blockchain can totally transform this system. It provides detailed penetration into the entire payment process thereby facilitating the businesses to monitor all the transactions step-by-step. The owners can see the amount that they are owed to pay and the amount that is expected to arrive thereby allowing them to make their financial plan accordingly. Thus, blockchain facilitates increased visibility into the financial aspects of the business.

Advantages that Blockchain can bring in the payment ecosystem

The blockchain technology has huge potential when used with billing and invoicing software. Some of these are listed below:

1.Reliability:

Trust and reliability are two virtues that businesses consider before doing business with other company.
In the business world, ‘human trust’ is everything. However, in the cyberspace, businesses happen across countries and it is not feasible as well as viable to have face to face interaction. Furthermore, the cyber world is prone to identity thefts, malware, and security attacks, so there are chances that the funds may be released to the criminals.
Blockchain technology comes as an element of reliability in such a scenario. The blockchain technology is used to verify the identity of the clients and it even authenticates the price that is agreed by both the parties thereby eliminating any fraud. Thus, the element of trust is inbuilt into the blockchain-powered billing software. So, there won’t be any need of any paper trail.

2.Fast and efficient transactions:

All the financial transactions go through several steps and at times, they may be held up due to some of the other reason. This tends to delay the payments. However, with blockchain technology, the payment process becomes faster and more efficient. Since the intermediaries are eliminated, both the parties can monitor the transactions detail in real-time and verify them to process the payments.

3.Immutable Audit:

In the case of blockchain technology, the information (detail of each transaction) is stored in blocks. Details such as the time and date of the transaction are also recorded. Both the parties can make changes to the transactions after mutual agreement and these changes are again stored into the blocks and verified by the parties. In this way, blockchain gives transparency into the whole system.

Closing note

The blockchain technology is promising and will surely lead to seamless billing and invoicing. Its integration with billing and invoicing software is ground-breaking and totally lucrative. However, everyone is not a tech geek and au fait with the technology, so companies that provide billing software like HyperDrive, reachaccountant etc. may gradually embrace the blockchain technology with the billing software.
The small and medium businesses may take even more time to adopt the technology to handle their invoicing and billing process. They may refrain from the technology considering it a pricey investment. But they may gradually embrace if after watching its progress.

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