QuickBooks is the most commonly used accounting software in the IT staffing industry. It has great features, but unfortunately it doesn’t meet industry-specific requirements, especially when it comes to invoicing and downstream processes including VMS (vendor management).
Invoicing in QuickBooks provides only the same level of convenience as in manual invoicing, except for the fact that data is held in software and processing is done by retrieving it and generating invoices in an invoice template that comes with the accounting software. This is not true automation; true automation must remove human intervention to the maximum extent possible.
Limitations of QuickBooks in IT Staffing Invoicing
QuickBooks cannot be endowed with industry-specific functionalities, but users can integrate it with an application to meet most of the specific requirements. In the IT staffing business, firms integrate CONSULT cloud-based SaaS application to enhance QuickBooks to fully meet the extensive requirements of the staffing firms’ accounting automation needs.
Accountants know that invoicing in the IT staffing industry is a complex process and the time it takes for a single invoicing can be hours and potentially even a day to complete. To cut time consumption, increase accuracy of the invoices and systematically store critically important data for invoicing are some of the major issues. However, it should be remembered that there are many other issues too that invoicing is expected to address through the application of automation tools such as CONSULT.
Solving the Timesheet Issue
Timesheet submission is the most complex issue that accountants face in the IT staffing industry because it forms the basis of all calculations in invoicing. Billing rates, billable rates, billing address, perks, project information, invoice discount rates, invoice dispatch scheduling and payment dates all depend on it for smooth operation. A single error or mistake can reverberate in all calculations and make the invoice unfit for processing in the hands of customers.
Most reasons for defects in consultant timesheets can be traced to following the manual methods that some IT staffing companies still use in their accounting department. Automation can set this right instantly because they don’t tire like humans and make mistakes.
Invoicing in QuickBooks provides only the same level of convenience as in manual invoicing… This is not true automation; true automation must remove human intervention to the maximum extent possible.
Solving the Discount Problem
Offering your customer a discount is a trick problem, but nevertheless it is a necessity for retaining loyalty and keeping the customer base intact. Discounts must be offered on a scientific basis that increase the ROI and keep profit level up as well. There are many factors to consider: the future rate of return that discounts will bring, the optimum discount rate that the business can sustain and the tangible benefits that can be expected in the immediate future.
Discount offerings must be automated and based on measurable facts; randomly applying a rate can be detrimental to your business. When you automate the process with proper algorithms and matrices like in CONSULT invoice automation, what you get is an unbiased discount rate based on sustainable numbers.