Getting paid on time for completed service agreements is crucial for every tradesperson. Unfortunately, many businesses in the trades industry struggle with delayed payments and time-consuming manual invoicing, negatively impacting cash flow and causing administrative headaches. This article explores the challenges tradespeople face with manual invoicing and explains how automated systems—integrated with accounting software and automatic bookkeeping—can solve these problems. We’ll also discuss how Alunta helps tradespeople streamline invoice handling, including a step-by-step guide to implementing automated invoicing in your own business. The following article will be based on Danish and international statistics since Denmark is considered to be forward in digitisation in many aspects.

Challenges of manual invoicing in the trades industry

Receiving timely payments for completed service agreements is vital for any tradesperson. Unfortunately, many businesses face difficulties with delayed payments, forgotten invoices, and time-consuming manual invoicing. For instance, studies reveal that one in five Danes has had to request an invoice from a trades business within the past five years. Late or forgotten invoices lead to liquidity issues and extra administrative burdens. Often, tradespeople must spend valuable time calling or emailing customers for payments—frustrating tasks that disrupt their already busy schedules. Statistics confirm this is a common issue: only about 15% of businesses received customer payments within 30 days in 2023, despite nearly half of invoices offering a 30-day payment period. Overall, 44% of Danish companies report problems due to late payments, especially smaller businesses like many trades companies, which are particularly vulnerable to even short delays. Another problem with manual processes is invoice errors. Manual entry increases the risk of errors—up to 39% of all invoices contain mistakes, with around 61% of delayed payments attributed to incorrect invoices needing correction. For tradespeople, these errors translate directly into additional administrative work issuing credit notes or corrected invoices, diverting them from focusing on serving their customers. Clearly, manual invoicing methods negatively impact cash flow, efficiency, and job satisfaction.

Benefits of automated invoicing for tradespeople

Transitioning from manual to automated invoicing offers substantial benefits for trades businesses, including:

Time savings in invoice management: Automation eliminates repetitive manual tasks by generating and sending invoices automatically at scheduled intervals (monthly, quarterly, annually). This frees you from repetitive administrative tasks, giving you more time to focus on your core tasks and customer relationships.
Fewer errors and faster payments: Automated systems draw data directly from service agreements and price lists, minimizing invoice errors. Accurate invoices mean customers won’t delay payments due to corrections. Additionally, automated reminders can be sent if a payment deadline passes, significantly increasing timely payments and improving your liquidity.
Integration with accounting systems and automatic bookkeeping: Modern invoicing systems can integrate seamlessly with accounting software. This integration enables automatic bookkeeping of invoices as soon as they’re sent, eliminating the need for double-entry bookkeeping. Your financial records remain up-to-date without extra effort, providing clearer financial oversight and reducing bookkeeping errors. Payment reconciliation becomes easier, as payments can automatically match invoices in the system.
Better overview and control: An automated invoicing system provides real-time insights into invoice statuses, upcoming renewals, and outstanding payments. You always know exactly which customers have paid and who requires follow-up. Some systems even provide detailed invoice management reports, allowing you to track average payment times, aiding cash flow management and financial planning.
Scalability and professional image: Automatic invoicing enables easy scaling of your business. Whether you have ten or a hundred service agreements, the system manages them effortlessly. This automation sends a clear message to customers that you’re professional, organized, and reliable—boosting customer trust.

Alunta – automated invoice handling tailored to trades businesses

While numerous platforms offer automated invoicing, Alunta is uniquely designed for businesses with recurring service agreements, making it perfect for tradespeople. Alunta streamlines invoice management, automates payments, and provides seamless integrations with popular accounting software. Once you set up service agreements within Alunta, the system handles everything automatically—generating and sending invoices at renewal intervals (monthly, annually, etc.). Alunta ensures customers receive timely invoices without you lifting a finger. Moreover, its accounting software integration allows automatic bookkeeping, eliminating manual bookkeeping tasks and reducing errors. Alunta ensures invoices are issued on schedule, improves your cash flow, and saves time. Alunta provides a clear dashboard, showing all your service agreements and corresponding revenues. The system also reminds you of upcoming service visits and daily invoicing tasks, ensuring nothing falls through the cracks. If a customer misses a payment, Alunta can automatically manage reminders, eliminating manual follow-up. Alunta truly automates invoicing from A to Z, enabling you to focus on delivering great service.

Step-by-step: Implementing automated invoicing

Ready to transition from manual invoicing to automation? Follow this step-by-step guide tailored for tradespeople:

Map your current service agreements:

Identify current contracts and invoicing practices. Determine invoicing frequency and areas where manual tasks are problematic.

Choose the right automation system:

Look for an intuitive platform like Alunta, specifically designed for trades businesses, that automates invoicing and integrates seamlessly with your accounting software.

Integrate with your accounting software:

Connect the chosen platform with your accounting system. Ensure invoices are transferred accurately and bookkeeping is automated.

Set up your customers and agreements:

Import or manually add customer details and create each service agreement with prices, descriptions, invoicing frequency, and duration. Thorough initial setup saves significant time later.

Configure automated invoicing and payments:

Set up automatic invoicing intervals and payment reminders. Choose how invoices are sent (email, postal mail, EAN, etc.). Optionally enable automatic payment collection.

Test the system thoroughly:

Conduct a few tests with sample customers to ensure everything—from invoice generation to accounting integration—functions perfectly.

Train your staff and inform your customers:

Make sure your team understands the new system, and inform customers about the transition to automated invoicing and payment handling.

Monitor and optimize:

Regularly review the invoicing system’s performance. Make necessary adjustments, such as reminder intervals or invoicing methods, to continually improve your processes.

Conclusion

Manual invoicing and payment follow-up can be exhausting for tradespeople. Automated invoicing solves these challenges by handling invoices and payments without manual intervention. Automating ensures timely payment, reduces errors, and enhances your business’s cash flow. Integration with accounting software facilitates automatic bookkeeping, providing accurate, hassle-free accounting. By implementing Alunta or similar systems, you can ensure timely payments of your service agreements, free yourself from administrative headaches, and return your focus to your craftsmanship and customer relationships.

Sources

SMVdanmark – Late payments impacting Danish businesses
Mester Tidende / Building Supply – Delays in invoice sending among tradespeople
Ascend Institute of Finance & Management – Invoice error statistics
Skynova / Chaser – Invoice payment statistics
Alunta – Automated invoicing solutions for trades businesses