Organizing invoices and payments can be a daunting task if done manually. Find out how to keep track of invoices and payments through automation...
How to Choose the Best Invoicing Software: A Quick Guide
Invoice automation hastens your management, receipt, and tracking of payments. Select the best invoicing software with this step-by-step guide.
Invoicing is an essential part of running a business. However, the task can be time-consuming, especially with limited staff.
Your business can process, receive, and track payments faster by streamlining your invoicing workflow. But in doing so, you must first choose the right invoicing software.
What is Invoicing Software?
Invoicing software is a tool or software solution that automates bill creation for the products or services you have provided or rendered to your customers. This tool helps ensure the timely collection of payments while avoiding manual data entry. User-friendly invoicing software is also available to small businesses and freelancers.
With invoice templates included in the software, you get more work done as the process becomes quicker and easier. The tool generates the list of services or products provided to the client, their corresponding costs, plus sales taxes and other fees. Once complete, the software sends the invoice to your customer.
With numerous invoicing software to choose from, finding the best invoicing software can be quite challenging. Make a smart decision and execute invoicing faster by following the steps below.
Choosing the Best Invoicing Software: 5 Essential Steps
As you grow your business, your tools should adapt as well. Microsoft Word and Excel will not be suitable enough at some point and can be more of a burden than a solution when invoicing. This guide will push you in the right direction towards getting all your bills paid and tracking payments in the most productive way possible.
1. Know your business needs
First, you should list your business requirements when choosing an invoicing and billing software. Be sure to review your current business framework and payment options. Consider the type of employees who will use the software and the possible control systems you will need.
Do you need invoicing software with project management features? Do you charge according to billable hours? Do you need access to multiple payment methods? Do you transact in multiple currencies? These questions can help you identify what to look for in an invoicing solution.
Here are other important questions that can help determine which invoicing solution will work best for your company:
- Is the software scalable?
- Is it user-friendly?
- What are the security features included?
- Is the software customisable?
Request a software demo to gauge if the invoicing solution suits your liking and business requirements.
2. Identify your software integration requirements
Determine your integration requirements once you have identified your business’s invoicing needs. Your company may be using multiple separate systems for invoicing, payroll, billing, and accounting.
Ideally, these systems should be able to communicate with one another and present all the information you need. It is best to look for an invoicing tool that integrates with your existing accounting solution for easier bookkeeping.
3. Consider your budget
Allocating a budget for invoicing software entails knowing the costs you need to pay upfront, including expenses for updates and other software-related charges. The invoicing solution should be transparent about the pricing from the start so that you can plot your budget as accurately as possible. Remember that more sophisticated features mean higher costs.
4. Compare the features of different packages
Different software packages will present you with an array of features. It is crucial to find a solution that has customisable invoices. Will you be able to add your logo or invoice codes? Some solutions will allow you to create new invoices, use templates, accept various payment methods, send out late payment notifications and even integrate automation frameworks.
5. Check what other companies use
You can compare other companies’ solutions to your prospective choices when deciding which invoicing software is best for your business. Ask accountants and friends from other firms about their invoicing software and see if they also fit your business needs. You can check reviews of the top invoicing software online.
Find the Right Invoicing App for Your Business
An invoicing system plays a crucial role in keeping a business running. It allows for proper accounting of records and helps process payments more efficiently. You can generate more accurate invoices and send them to your customers with no hassle with an automated process provided by your chosen invoicing solution.
If you’re looking to speed up and streamline your invoice payments, consider using Spenmo. This end-to-end payables software brings internal expense tracking, automated bill payments, approval workflows, and accounting reconciliation into an integrated view.
With Spenmo, you can reduce invoicing-related work by up to 50 hours. In fact, companies that use Spenmo save over $10,000 every month! Book a demo today to see how Spenmo can help streamline your invoicing process!