How Accounting Software and Invoice Factoring Work Together to Fuel Growth
Integrating accounting software with invoice factoring fuels business growth by streamlining financial management and improving cash flow. While software automates tasks and provides insights, factoring companies like REV offer immediate capital, debt-free financing, and expert support, creating a powerful synergy for scaling operations.
Elaine Gillis
Communications Lead
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Integrating accounting software with invoice factoring fuels business growth by streamlining financial management and improving cash flow. While software automates tasks and provides insights, factoring companies like REV offer immediate capital, debt-free financing, and expert support, creating a powerful synergy for scaling operations.
Manually balancing books with loose sheets may have worked well for businesses in the past, but in today’s fast-paced world, this makeshift approach can no longer sustain a growing company. Structured systems, where you can properly organize finances, align better with your growing business’s accounting needs.
If you’re tapping into invoice factoring to fund your business, partnering it with accounting software can help your team stay on track. Automate repetitive tasks while painting a clear portrait of your finances.
At REV, we believe that combining accounting software into the invoice factoring process (along with human expertise) helps build a more manageable and reliable financial “house.” Let’s explore how these two work together to keep your finances in check.
How Accounting Software and Invoice Factoring Work Together to Fuel Growth
Gone are the days when accounting software was considered a novelty. In today’s fast-paced business world, spending excessive time on manual financial tasks is no longer just inefficient; it’s a serious drawback.
Yet, many business owners fail to realize the true cost of relying on manual processes, both in terms of lost time and wasted resources.
Administrative overload is a consideration. Spending too much time on data entry, account reconciliation, or paperwork means less focus on growth, innovation, and customers. Sticking with manual finance management can hurt productivity and cause missed business opportunities.
Inconsistent follow-up is another issue. Managing finances manually instead of automating can lead to losing track of invoices as workloads grow. Research has consistently shown that our short-term memory can only handle somewhere between four and nine items at once. Lapses cause inconsistencies, leading to delayed invoice payments, strained customer relationships, and unsteady cash flow.
Delayed payments can limit growth opportunities like buying discounted inventory, hiring talent, or funding marketing. Worse, slow cash flow might push you to dip into personal savings or take on business loans.
That’s why accounting software is key to streamlining your invoice factoring process. It automates tedious tasks, sets up reminders, and gives your team clear, actionable insights without extra analysis.
How Does Invoice Factoring Work & Why Do Businesses Use It to Grow
Invoice factoring is a business financing strategy that lets you sell unpaid invoices for cash to a factoring company. This gives you instant access to funds equal to your total invoice value without the burden of debt or collateral, offering significant advantages.
Immediate Working Capital. Get funds fast, within 24 to 48 hours. With invoice factoring, you skip the usual 30, 60, or 90-day payment delays businesses face and improve cash flow in as fast as 24 hours, depending on the factoring agreement.
Flexible Growth Funding. As your business grows, so does your customer invoice volume. If you have many outstanding payments, you can sell them to access funds. Factoring scales with your business growth.
No Debt Added. Invoice factoring isn’t lending or borrowing; you simply sell unpaid invoices and keep the cash, minus a small invoice factoring cost. No debt, no interest, no credit impact.
The cash flow benefits of invoice factoring solve cash flow issues and eliminate stagnation and business bottlenecks. As the factoring company collects client payments, you focus on business operations. Use the cash advance to hire new talent, upgrade technology, or expand operations.
At REV, we help businesses redirect funds into growth opportunities at the right time for minimal factoring fees.
Software, such as QuickBooks, Xero, and FreshBooks, has transformed accounting for businesses of all sizes. Large companies gain valuable financial insights, while small business owners sidestep the monetary challenges needed to hire an accounting team. The advantages are endless. Here are the accounting software businesses commonly use.
QuickBooks
QuickBooks, online or desktop, is a popular accounting software for small and medium-sized businesses. It simplifies bookkeeping with automated tasks and offers real-time financial insights. It’s especially known for:
Customizable invoicing and automated payment reminders.
Expense tracking and mobile app receipt capture.
Bank feed integration + real-time transaction updates.
Inventory management and VAT/sales tax tracking.
Xero
Xero is a cloud-based accounting tool with user-friendly design, automation features, integrations, and real-time dashboards. Its notable features include:
Online invoices with customizable templates and automated reminders/notifications.
Direct bank connections for automated reconciliation.
Expense management, bill payment, and purchase order tracking.
Multi-currency support, project tracking, and region-specific payroll management.
FreshBooks
FreshBooks is a top accounting software for small business models, freelancers, and service professionals. Known for simplicity and excellent customer support, it’s become a go-to accounting tool.
Customizable invoicing with automated payment reminders.
Online payment acceptance and recurrent billing.
Time tracking and projecting management tools.
Detailed financial reporting (profit & loss statements, expenses, tax summaries).
Benefits of Accounting Software
Accounting software can streamline your financial management by automatically labeling transactions and generating real-time reports to help track income and expenses. It also enables the generation and sending of professional invoices, supports recurring billing, and facilitates digital payments.
By syncing your bank accounts, the software helps reconcile transactions and identify discrepancies to maintain accurate records. Additionally, it simplifies tax preparation by generating financial statements, tracking deductibles, and organizing everything needed for smooth tax filing.
Modern accounting software is versatile and robust. It can function as your co-pilot, assisting with various financial tasks, or take over where necessary.
Accounting Software Limitations
Despite their benefits, software for accounting also has limitations, especially when it comes to client management and collections.
Customer Relationship Management. Accounting software usually gives limited insights into customers’ payment and credit histories. It also doesn’t offer much help in assessing client reliability or managing difficult accounts.
Personalized Guidance. Although accounting software can provide a wealth of insights, it can’t provide much guidance for navigating unique challenges.
Can’t Chase Payments for You. Software can send you automated notifications, but it can’t recoup your outstanding invoices. That’s still on you to do.
With these caveats in mind, it’s important to remember that accounting software needs a team of human experts behind it. They can fill in the gaps left behind by apps. This is what we do at REV.
How REV Complements Accounting Software
REV’s online portal offers access to a debtor database, which you can use to research clients’ payment behaviors. This lets you make more strategic decisions about whom you should (or shouldn’t) do business with.
We also offer support for scenarios that require personalized guidance, using our real-world experience and industry expertise. Ultimately, our team is the human extension of any accounting software, providing you with the human touch that a program or app can’t provide.
How REV’s Client Portal Works with Your Accounting Software
If you want to build the ultimate accounting management powerhouse, combine accounting software with a dashboard like REV’s Client Portal.
The account software will handle the hardcore finance tasks so you can keep track of invoices and gather insights. Meanwhile, a dashboard such as REV’s Client Portal shows you client behavior, so you can make better business decisions in the short and long term.
Together, they give you far more control over your financial health, allowing you to see every aspect and act in advance. Let’s compare how accounting software and client portals stack up.
Accounting Software vs REV’s Invoice Factoring Portal
Function
REV Portal
Accounting Software
Generate and send invoices
✅ Yes. Clients can upload invoices or generate them directly in the portal. REV verifies and sends them to the customer.
✅ Yes. Most platforms allow users to generate and send invoices.
Track factoring status
✅ Yes. Real-time updates on invoice status (submitted, approved, funded, disputed, etc.), with notes and full AR visibility.
❌ No. Typically requires manual tracking for factored invoices.
Manage general expenses/payroll/taxes
❌ No.
✅ Yes. Designed to manage a broader financial picture.
Sync with accounting data
🔶 Not directly. That said, manual exports and support from REV are available (example: month-end or year-end summaries)
✅ Yes. Most platforms offer features for data integration and sync with banks and other tools.
Client support
✅ Dedicated relationship manager. We handle communication, offer guidance, and coordinate across departments (credit, legal, etc.)
🔶 Generally limited. May offer support through chat, phone, and community forums, but usually lack dedicated account managers.
Automation
✅Yes. REV’s client portal also contains automation features. It’s also backed by human teams, who’ll add another layer of support to ensure you’re on top of all your financial data and factoring activities.
✅ Yes. Modern accounting software contains features such as automated reminders for payments and more.
Real-Time Funding Status
✅ Yes. REV’s client portal allows you to keep tabs on funding status.
❌ No. Accounting software doesn’t provide access to databases that would provide funding data.
As you can see from the chart above, accounting software and invoice factoring portals complement each other. That’s why it’s ideal to see them both as essential tools, not just options to choose from.
How They Work Together
Smooth Workflow Compatibility. Your accounting software creates and manages invoices, which you can then upload for factoring in the REV portal.
Comprehensive Tracking. Your accounting software provides a comprehensive view of your finances, while the REV portal offers real-time insights on invoices you’ve factored, received payments, and available funds.
Enhanced Collections. REV’s team will follow up on unpaid invoices, using a combination of automated tools and personal contact to ensure payments come through in a reasonable time.
Strategic Insights. You’ll gain access to a debtor database and credit advisory services that enable you to make more sound choices about extending credit and handling risk.
Working with us gives you personalized support. Like all clients we work with, we’ll pair you up with a dedicated account manager who understands your industry and business needs. They’ll be your go-to for questions about the REV platform, resolving issues, and strategic advice where possible.
The REV platform is designed to align with your accounting software and processes. That makes it easy to integrate your existing data and dashboard with REV’s, so that you can visualize your invoice factoring process with ease. There’s no need to give up your existing software. You can make it more effective by extending its capabilities with the REV Client Portal.
Frequently Asked Questions (FAQs)
What is invoice factoring and how does it work?
Invoice factoring is a financing solution where you sell your unpaid invoices to a factoring company in exchange for immediate cash. At REV, we advance funds quickly and manage collections on your behalf, so you can focus on growing your business instead of chasing payments.
Can I use accounting software with invoice factoring?
Yes. Many REV clients use accounting software to manage their books while using our client portal to track funding, collections, and invoice status. Together, they provide a full picture of your financial health and reduce admin time.
Does REV integrate with accounting software?
While REV currently doesn't offer automation software or enterprise resource planning (ERP) integration, our portal is built to complement the way you work. We provide exportable reports, end-of-month summaries, and support for sharing data with your accountant or bookkeeping software.
What’s the difference between invoice factoring and traditional loans?
Unlike loans, invoice factoring doesn’t add debt to your balance sheet. You’re selling receivables, not borrowing money, so there’s no interest, no repayments, and no impact on your credit.
Sustainable growth isn’t solely dependent on technology or humans. In modern times, it requires a balance of both. That means knowing when to lean on machines versus people since machine algorithms and human brains have their unique strengths and limitations.
Use Software to Keep Your Team Organized. Let your accounting software handle the manual work: monitoring transactions, generating reports, and completing compliance checks. This frees you up to focus on strategy, sales, and improving your services.
Work with an Invoice Factoring Company. Instead of chasing unpaid invoices, let a factoring company like REV manage your accounts receivable. Invoice financing lets you sell your invoices and focus on growing your business. Plus, you gain access to expert support, relationship management, and a team to help drive your business forward.
Let your software handle numbers, manage data, and track accounts so you can focus on driving your business to new heights. Strong relationships are key to success. Pair accounting software with invoice factoring services to stay focused on what matters most.
Key Takeaways
Manual financial management drains time and stifles growth, making automation essential.
Accounting software streamlines invoicing, expense tracking, and tax prep, freeing teams to focus on strategy.
Invoice factoring offers fast, debt-free capital by converting unpaid invoices into immediate cash.
Combining accounting software with a factoring portal like REV’s gives businesses full visibility and control over cash flow.
True financial scalability comes from the synergy of smart tools and expert human support.
Let Accounting Software & Invoice Factoring Fuel Your Business
Business growth is a matter of input and output. The time and effort you dedicate toward your growth initiatives will influence the scale of growth you achieve. If you’re spending too much time on accounting, it’s time to invest in full-suite accounting software and invoice factoring. This lets you focus on tasks that grow your business.
At REV, we help companies like yours make the best use of these tools, while also managing accounts receivables on your behalf. We aim to provide the support necessary, so you have the time and resources to maximize your business growth.
Need assistance building your ultimate financial toolkit? Contact REV to help you do that, so you can reach your next level of business development!
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