5 Record-Breaking Invoice Software for Small Business
Running a small business includes a plethora of various operations that make business success. And invoicing is one of them. As a matter of fact, it’s one of the most important business activities. If done manually, invoicing can consume you a lot of time and money.
What’s more, humans are prone to mistakes, and small misinformation in your invoice can result in severe loss. This’s where the invoice software comes into the play. It’s a program that can automate the invoicing process at your startup.
This buyer’s guide aims to make it easy for you to discover the purpose of invoicing, its features, benefits, and top 6 solutions available on the market.
Primarily, invoicing software for small business speeds up routine tasks. On top of that, it assists in managing manual data entry – making it easy to see the appeal in using it.
For solopreneurs, an invoice program expedites the payroll process by giving clients a notification of the payment that’s due.
For users, the solution provides an organized record of expenses with itemized details and helps with record keeping.
The software is used by SMBs for a variety of purposes, such as:
- Requests timely payment from customers;
- Keeps track of sales;
- Tracks inventory, for businesses selling products;
- Forecasts future sales through historical data;
- Records business revenue for tax filings.
Entrepreneurs need to deliver invoices in order to request payments. It’s a legally binding agreement showing both parties’ consent to the payment conditions and quoted price.
Still, there’re other reasons for using invoices.
- Maintaining records– The most critical invoicing feature is the capability to keep a legal record of the sale. As a result, it’s effortless to find out when an item was sold, who bought it, and who sold it.
- Payment tracking– It’s an invaluable tool for accounting. It assists both the buyer and the retailer to keep track of their payments and amounts owed.
- Legal protection– This is legal proof of an agreement between the merchant and buyer on a set price. It protects the seller from fraudulent lawsuits.
- Easy tax filing – Maintaining and recording all sale invoices helps the firm report its income and ensure that it’s paid the correct amount of taxes.
- Business analytics – Analyzing invoices can aid business managers to collect information from their clients’ buying patterns and determine trends, popular products, right buying times, and so on. It helps to develop efficient marketing strategies.
Do you send out printed invoices, or make them individually and send them out via email? If so, there’s a better practice to do it. You could save time and money by switching to this software.
Send invoices automatically
The faster you send the invoices, the sooner you’re likely to get paid. A proper solution can help in:
- Scheduled invoicing – Configure your accounting software to send out invoices automatically at specific dates and time;
- Direct invoicing – When you send out invoices, there’s no need to wait for your bookkeeper or accountant to do it for you. It also means you could reduce your overheads;
- Invoice anytime, anywhere – If you’re running a startup, you can even generate bills when you’re out on the road.
Better invoice tracking
Once you have sent out your Invoice, what is next? Back in the day, you would wait until the due date and keep checking your bank account to see if you’ve been paid. And then hunting if the money hasn’t arrived.
But with this program you’re able to:
- View payment status – See which invoices have been paid, as well as which ones are due or past due. See all this info on one screen, giving an overview of the money owed to you;
- Create your own reminders – Not all customers are the same. You can add reminders/notes for each invoice and client, from within the invoicing platform;
- Run reports to get an improved insight – You can launch aging reports on your accounts receivable and can see which of your users are late payers. Plus, you can adjust your payment terms to suit each customer;
- Create a better audit trail – Good invoicing software makes it easier for you to keep a detailed audit trail.
Get paid quicker
One goal of invoicing online is to minimize the time between sending an invoice and receiving payment. It can make:
- Fast delivery – No need to worry, whether or not your invoice arrived. Some solutions will even send you automatic updates when your bill is opened by the client;
- Use of payment services – The latest online payment services enable your clients to “pay now’” from within the Invoice. It’s quick, easy and means you get paid instantly;
- Improving security – This software is secure and safe to use. It utilizes special encryption similar to that used by other financial institutions like a bank. Your costumers can trust it, so they’re likely to respond to your invoices faster.
Save time and money
Whether you manage invoices yourself or rely on a staff member, accountant, or bookkeeper, you need to invest time or pay.
Sending them digitally will save time compared with conventional ways and also:
- Keep track of your business’s cash flow by sending invoices to your costumers directly from your platform on a weekly, monthly, or quarterly base;
- No need to pull out old invoices, reproduce similar ones, or reuse an old template. A few clicks and the new invoice is sent out;
- Handles numbering of your invoices, either with a unique customer number or a sequential numbering system.
Help your clients to pay on time
Handled correctly, sending invoices online can stir your costumers to pay you quicker.
Additionally, the software is able to:
- Send reminders – Solopreneurs are usually busy, so it can help to send a friendly reminder when payment is due.
- Offer different payment options – The aim is to make it easy for your users to pay you, so the solution offers credit card handling, PayPal or bank transfers;
- Use a company template – The software makes it easy to customize the invoice design for each customer, while still being consistent in how you represent your brand;
- Use a payment service – Get paid quicker by using a cloud-based app that will let your clients pay you automatically with the click of a button.
Best Invoicing Software for Small Business
Read on to learn which 5 invoicing software are best for small business and the features you should look for.
1. Zoho Invoice
Zoho Invoice is a free invoice software perfect for sole proprietors looking to create and manage personalized invoices.
Also, the solution is used by creative designers, writers, and photographers seeking to launch their online startup and to commercialize their freelance activities.
Another handy feature offered by Zoho is to manage/monitor invoices and share them with clients all from the same platform.
You can apply it to follow any transaction, and tailor invoices using a vast array of premade templates and imported elements specific for your company. Plus, it creates and distributes invoices in various languages and currencies.
The platform suits newbies with a simple/intuitive interface and helps them get rid of complicated timesheets and steep learning curves.
This well-designed system enables you to craft forms and generate invoices, and adjusts settings from the first moment you’ve created the account.
The sole proprietors can also set up taxes, upload their templates, and personalize all emails clients will receive.
- Records foreign currency invoices and expenses with decimal precision;
- Displays all important business information at a glance;
- Protects all data with 256bit SSL encryption;
- The system is well integrated;
- Integration to Zoho CRM.
- Lack of advanced features like reporting.
2. QuickBooks Self-Employed
QuickBooks Self-Employed is a cloud-based invoicing solution that helps independent contractors and freelancers to automate expense categorization that enables them to track costs for travel, assets, advertising, and insurance, among others.
Its TurboTax module allows you to file taxes online and run record entries by exporting Schedule C to the software.
Further, the program automates the calculation of quarterly taxes and updates with tax estimates for the year.
It enables freelancers to connect with their bank accounts for tracking and monitoring. Independent contractors can also segment business/personal expenditures and share expense summaries.
The solution can be accessed via various mobile devices remotely. It utilizes industry-standard encryption technologies to secure communications between the stakeholders.
Services are provided on a monthly subscription basis that includes support by phone.
- Includes clean dashboard and simple navigation;
- Freelancers can access it from any device;
- You can create, send, and track invoices from one place;
- Tracks expenses/mileage automatically;
- Pays quarterly taxes.
- Basic reports;
Due is free invoicing software that empowers small businesses, and freelancers get paid more quickly. With this platform, you can eliminate checks and paperwork and go digital. The solution helps you to create and track the invoices you send to partners and clients.
By being able to track invoice status, GMs can accept more payment techniques and escape invoice duplication. Also, you can brand your invoices with your company logo and colors.
You can use it to replicate invoices sent to customers and handle outstanding requests/payments. As a result, the app helps you to save time and organize your finances accurately.
Plus, you can hold balances in the solution, which will provide enhanced control over your finances and enable you to run your business operations efficiently. Therefore, this software is used by more than 143,000 companies in 130 countries.
- Creates projects and tasks easily;
- Seamless client navigation;
- The dashboard is intuitive and user-friendly;
- Simple integration;
- Experienced customer service.
- Doesn’t provide hourly billing;
- No mobile payments.
Invoice2go is a platform that has mobile apps for Android and iOS devices to enable you to issue invoices on the go.
You can create professional invoices from a selection of customizable templates along with purchase orders, credit memos, packing lists, estimates, and more. With this solution, you can go paperless and also accelerate customer payments.
The app allows you to track invoices and get info on when your client opens and reads the document. You can use this info to approach the customer at an appropriate time. If the payment is late or pending, the solution sends automated reminders to the user.
What’s more, the program processes credit/debit card transfers along with Apple Pay and PayPal payments.
Besides, you can use your cell phone camera to snap receipts, store the images securely, and utilize them to track/record expenses easily.
Services are offered on a monthly subscription system.
- Displays graphs and charts of your business’s recent history/financial status;
- 13 types of reports + 7 templates;
- Accepts credit and card debs;
- Multi-currency support and watermark feature;
- You can reply to your clients immediately.
- Limited ability to customize fields;
- Poor search feature.
CraveInvoice is designed for small businesses across a range of industries, including small-scale manufacturers, service providers, and retailers.
Specializing in invoicing, inventory management, and expense management, the tool provides capabilities for multi-currency invoicing, customizable invoice templates, multi-warehouse inventory, and an integrated accounting module.
Also, you can send invoices to clients by email, set up automatic alerts for low inventory, and control business expenses related to administration and/or travel.
Small business owners can run several accounting reports, including trial balance, balance sheet, and profit statement and can import data from Excel and export data to PDF and/or CSV files.
The software is available worldwide as an on-premise (compatible with Windows) or cloud-based platform (OS agnostic). Users get access to their technical support and training services.
You need to contact the vendor for the price of Crave Invoice’s services.
- Professional invoice templates;
- Quickly prepares supplier purchase orders;
- Records all business expenses;
- Keeps track of items in your inventory;
- Prepares customer receipts for all invoices.
- Doesn’t support Android devices;
- No alerts and notifications.