If you're a plumber who owns your own business, you know invoicing is essential to your day-to-day operations. Not only do you need to keep track of how much work you've done, but you also need to make sure that you're getting paid for your time and materials. This can be difficult if you're not using the right tools.
Read on to learn the value of implementing invoicing software into your plumbing business and how easy it is to integrate into your existing operations.
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The plumbing industry is a $129 billion market, making it one of the most actively growing industries in the U.S. But like any other business, it is subject to ever-changing trends.
From gaps in the plumbing workforce to supply chain issues, demand for smart technology and appliances, and more, here are some of the pressing challenges that the plumbing industry faces in the years ahead.
"The National Homebuilder’s Association’s Spring 2021 Construction Market Report found a 55% shortage of plumbers available for work. This plumber shortage comes at a time when the demand for residential construction, in particular, is high as Americans seek to renovate and build new homes post-pandemic."
The competition in the plumbing industry is growing, but so is the demand for skilled plumbers.
The demand for home improvement professionals has skyrocketed post-pandemic, but many homeowners and contractors are finding it difficult to find skilled plumbers. Furthermore, there is a shortage of business-minded plumbers who can juggle large books of business and keep up with the technological demands of today’s modern customers.
Old pipes are among the most dangerous aspects of any home water system, but they are also the most overlooked. Now more than ever, many people are dealing with the risks and consequences of waiting too long before they replace aging pipes. These issues include blockages, leaking pipes, erosion of the interior, water contamination, and more.
Most people search for home service businesses via their mobile phones — so if your website isn’t optimized for mobile, you’re going to lose out on massive sales opportunities. Homeowners must be able to easily navigate your website on their phones. Plus, it must also be mobile-responsive — meaning homeowners can easily find what they need with just a few clicks.
“The plumbing industry is also influenced by the cost of materials, which make up 20% of their billable invoices. One item that often appears is faucets. Suffice to say that these fixtures go the gamut from the plain to the extraordinary. That can help explain why this aspect alone is a $5 billion market.” - House Grail
One of the best ways by which plumbers can get paid fast is by providing customers with detailed invoices. This builds trust and healthy communication with customers.
Plumbing invoices must have an itemized description of the services rendered, along with a cost breakdown. This may include a description of the plumbing works completed, a list of items purchased for the job (with the quantity and price per item), and a description of the labor (number of hours and hourly rate.)
The pandemic lockdowns forced people to see their homes in a new light, and as a result, there have been massive increases in home renovation spending. Americans found themselves sprucing up their homes to adjust to the new normal. Much of the home renovation work focused on smarter home add-ons, kitchens, home offices, and outdoor spaces.
Naturally, this trend has also put new strain on the plumbing industry. Home additions and repairs nearly always impact the structure’s water system. And many homeowners have ventured to apply sweeping updates throughout the house, to include new fixtures, smart appliances, and more.
You don't have to have a technology background to incorporate your plumber invoicing software. These platforms are user-friendly and can save you enormous chunks of time (and money) while also making it easier for you to take on more customers.
Here is how you can start adding invoicing software to your existing customer sales process to make it more efficient.
Unless you know how much you're willing to spend on a new software solution, it's hard to set expectations. By creating a budget, you can prioritize the most critical features of your business. Look for a solution that meets your needs without breaking the bank.
When looking at your budget, remember there is often a trade-off between features and price. The more features a solution has, the more expensive it will be.
“Young and seasoned [plumbers] continue to adopt online marketing to attract customers and build local brands. Digital marketing spend should see an uptick, as should all things content-related: customer reviews, mobile-first websites, DIY blog articles, and advertising on the most searched sites for home improvement.” - Better Business Bureau
Equally important is to remember what stage your business is in. If you are still in the growth stage, you may not need all the features available in the top plumbing invoicing software. More established plumbing businesses will need an all-in-one tool that can do everything.
To get started, create a list of must-have features that are non-negotiable for your business. From there, you can look at different solutions that fit your budget. You might be able to save by getting a less expensive plan but supplementing the features you still need with a different tool. Also, remember that settling for a solution that fails to meet your business needs can also cost you more money (and heartache!) over time.
Becoming consistent with your payment deadlines for customers will make it easier to integrate invoicing software. If you have unrealistic or inconsistent deadlines, getting paid on time and developing a system that works for you will be more difficult.
“Did you know the average small business waits 21 days to get an invoice paid? Or that the average small business has only 27 days’ worth of cash reserves on hand? These stats are jarring because cash flow problems can have major ramifications for your plumbing and drain cleaning business.” - Plumber Mag
Your payment terms should include when you expect to receive payment from the customer and what type of late fees will be applied if they don't meet that deadline. It's important to be clear about your payment terms from the start, so there are no surprises later on.
Getting your clients in the habit of paying on time with reasonable deadlines will make a transition to your new system more manageable. You won't surprise customers who have used your plumbing service for years with a brand-new payment process.
If necessary, you can even send out a newsletter or redraft contracts to let people know there will be a change in your system.
Setting up your existing system for new plumbing business invoicing software is the best way to incorporate new technology without causing a disturbance to your business.
To do this, you need to know your payment history and what methods you used in the past. This will give you a better understanding of how to set up your new software to include the payments you are already using.
Keep in mind that some methods may take longer than others. For example, if you've been using paper checks as your primary payment method, you can expect a delay in payments.
On the other hand, the transition to new software should be pretty seamless if you've been using direct deposit or online payments. Your customers will already be accustomed to making payments quickly and easily.
Most of your invoicing system will be automated after integrating with new software, so you'll need to make sure you set everything up right the first time. Many platforms even have a support team to show you how it's done.
Just as you learned above, knowing your current invoicing process will get you prepared to make a transition into a new system. Ask yourself questions like:
You should also take some time to understand your customer's perspective. How they receive and pay their invoices from plumbing contractors makes a big difference in how you'll need to set up your new software.
For example, if most of your customers prefer to receive invoices via email, you'll want to make sure your new system can send them out that way. On the other hand, if you have a lot of customers who like paper invoices, you'll want a system that can track those payments.
Make sure to compare your current invoicing process with the features of the new software so you can determine if your current system can easily make the transition.
Getting paid consistently and reliably is essential for the success of your plumbing companies. When you don't have a system to track payments, it can be difficult to get paid on time. Here are all the ways your business can benefit from investing in plumbing invoice software.
You don’t have to wait until the end of the month to send your plumbing invoices out. An invoicing software lets you generate invoices immediately after a job is completed. Send e-invoices and payment links to your customers so they can receive them faster and pay as soon as they can.
Plus, you can use invoicing software to avoid any errors and keep an eye on your cashflow. That’s because all your finances are organized in one dashboard — making it easier for you to track payment history, unpaid invoices, income, costs, and profitability.
You’ll also build stronger relationships with your customers when you consistently send accurate and detailed plumbing estimates.
Your customers are the bread and butter of your business, and taking care of them at every stage of the service is how you'll continue to grow. From the first time they contact you for a service to after the job is completed, your customers should have a positive experience.
Invoicing software can help by giving your customers different options for payment that are convenient for them. For example, some people may want to pay online, while others prefer to pay in person. Customers can choose to pay as they wish in whatever method works best for them.
Invoicing software can also allow customers to use mobile payment processing to pay the bill from wherever they are. When your clients have a good experience throughout your entire service, they will be more likely to offer positive customer feedback. This can increase positive reviews on social media platforms and raise awareness of your business.
If you're looking for ways to enhance the client communication experience, you should consider an invoicing platform that streamlines the entire process.
Manually inputting your bookkeeping and invoice building is putting your business behind. The amount of labor and time that goes into these processes is significant. If you're still doing things the old-fashioned way, it's time for an update.
You can use plumbing invoice software to automate many tasks that come with billing your customers. Creating invoices for the same customers, setting up service prices, adding totals, and client tracking can be automated using instant invoice technology.
You'll have more time to focus on other areas of your business and spend less time on administrative tasks. Imagine saving several hours per week you would usually spend on invoicing tasks and spending it on marketing or more plumbing jobs.
You can also use this type of software to keep track of payments so you can follow up with customers who haven't paid their invoices yet.
An invoice system doesn't just collect payments for you — it can also help create professional estimates for your potential clients. As an entrepreneur, you recognize the importance of making the biggest impression on your leads. The more professional and trustworthy you are, the more likely you will get the job.
When you're trying to win a job, first impressions matter. If you're sending a potential customer a quote that is unorganized or difficult to read, they may not want to do business with you. Having an invoice system can help create more professional-looking documents that will help you win more jobs.
When it comes time to invoice your customers, you'll want to send them a document that is itemized, easy to understand, and has all the necessary information. You can avoid questions about what charges are for and when the payment is due.
Satisfied customers become repeat customers. The more painless and easy of a process you can create for your customers, the more they'll be willing to do business with you in the future.
The sheer terror that comes over most business owners' faces when they hear about an audit should indicate that the process is not fun. It's a time-consuming and stressful process that automation can make much more straightforward.
When you have all of your invoicing information in one software program, it becomes effortless to pull up data and records. You're not scrambling to find old receipts and invoices if the IRS comes knocking.
Because your data will be input automatically into the system, it can help with your taxes come tax season. You'll have all the information you need in one place and won't have to worry about losing any crucial receipts. You might even be able to save money on an accountant by using organized invoicing software.
Tracking down late payments is almost a full-time job in itself. You'll have to send out multiple emails, make several calls, and possibly even make an in-person appearance to get paid.
Using a seamless invoice creation can help simplify and automate the follow-up process. The software can send automatic late payment reminders to customers when their payments are due. This way, you're not spending valuable time tracking down late payments.
A sound invoicing system will keep all your invoices in one place so you can easily see what is outstanding and what has been paid. Then you're not wasting time looking for unpaid invoices or remembering which customers have paid and which ones haven't.
Invoicing software helps you ramp up efficiency and streamline operations by complementing your booking process. That’s because this tool also acts as a digital-record keeping system for your customers.
This means once a plumbing job is booked, you can quickly find all the details you need — materials, pricing, working hours, and more — to produce a professional, accurate invoice.
You can also quickly update invoices while you’re out in the field and send them via SMS, email, or chat. Invoice from anywhere and get paid quickly with automated payment reminders for your clients.
Create an easier invoicing process by integrating a software platform into your existing business. You won't have to track and manage invoices and can create a better customer experience for your clients.