Invoicing software is essential for any small business looking to streamline its billing and payment processes. In this blog post, we’ll explore the key features to look for in invoicing software, the pros and cons of popular solutions, how to evaluate the costs of different software, and tips for making the right choice for your small business. We’ll also provide advice for getting the most out of your chosen invoicing software.

How do small businesses use invoicing software?

Invoicing software is becoming increasingly popular for small businesses, allowing entrepreneurs to manage their finances efficiently and accurately. Invoicing software creates and sends customer invoices, tracks payments, checks outstanding invoices, accepts online payments, and maintains accurate accounting records. Whether you’re just starting out or are an established small business, invoicing software can help you to stay organized and in control of your finances.

Customers' contact information, billing information, and payment history may all be stored by this software, making it simpler to manage your client interactions. In addition, invoicing software can streamline your accounts payable process, automate payments, accept payments, and even generate tax documents.

It may also be used to automate a number of financial management-related operations. With the right invoicing software, you can save time and energy by automating tasks creating financial reports, expense tracking, managing customer information, and generating tax documents. Moreover, by keeping track of all payments and costs, invoicing software may assist assure accuracy and provide you with a complete view of your finances at all times.

Key features to look for in invoicing software

Small companies can greatly benefit from automating the processes of making and delivering invoices, tracking payments, and maintaining client accounts. The ability to customize invoices enables businesses to project a professional image to their clients and cater their invoices to the unique requirements of their industry. Look for invoicing software that offers customizable templates and can add branding elements such as logos and colors.

Another important feature to look for is automatic payment reminders. This enables companies to set up regular invoices for clients, increasing the likelihood that bills will be paid promptly. Automatic reminders can be programmed to be sent through email or text messages at particular times or dates.

Businesses should also look for invoicing software that integrates with accounting software such as QuickBooks Online or Xero. Businesses may quickly sync their invoices with their accounting software thanks to this connectivity, which can assist in guaranteeing that their books are always correct and up-to-date. This can save businesses time and effort when managing their finances.

Pros and cons of popular invoicing software solutions

Invoicing software is essential for small businesses that manage their accounts receivable and send invoices to clients. Several popular invoicing software solutions are available on the market, each with advantages and disadvantages. 

One of the most well-known options for invoicing software is QuickBooks, which provides several tools for controlling accounts receivable, delivering expert invoices, and monitoring payment progress. QuickBooks is a comprehensive solution offering much flexibility and scalability, making it ideal for businesses that must keep track of multiple projects or invoices simultaneously. QuickBooks' disadvantage is that it could be challenging to use and requires a lot of work to learn how to do it properly.

Another popular invoicing software solution is FreshBooks, designed for small businesses and freelancers. FreshBooks offers a simple, intuitive interface that makes sending and managing invoices, tracking payments, and viewing reports easily. It also offers a range of features for invoicing, such as customizing invoice templates and automatic payment reminders. The downside of FreshBooks is that it’s more expensive than other invoicing software solutions, and its features are limited compared to some of the more comprehensive solutions.

Finally, Zoho Invoice is a popular invoicing software solution for businesses of all sizes. Custom invoices, tracking recurring bills, automated payment reminders, and the capacity to send an infinite number of invoices straight to consumers are just a few of the invoicing capabilities offered by Zoho Invoice. The downside of Zoho Invoice is that it’s not as comprehensive as some of the other invoicing software solutions, and its reporting tool can be tricky to use.

To get the most value for your money, it's critical to consider the advantages and disadvantages of various invoicing software alternatives before choosing. You can choose the ideal invoicing software for your small business by taking the time to investigate and compare your alternatives in detail.

With B12, the all-in-one solution for professional service businesses, you get invoicing built into your website presence. It's a cost-effective way to keep your billing organized while giving clients a more cohesive experience with your brand.

Evaluating the costs of different invoicing software

When selecting invoicing software for small businesses, the cost is one of the most important considerations. Investigating and weighing the various possibilities' expenses is crucial because different software solutions could come at different price ranges. The number of users, invoices generated and sent, how many clients you bill, and the program's capabilities are a few variables that may impact the cost of the software.

There are invoicing solutions that cost as little as $10/month, but that doesn't mean the software has the features your small business needs.

A cost calculator is one way to compare the costs of different invoicing software solutions. These online tools can help you quickly determine the approximate costs of different types of software. Also, some software vendors provide free trials that allow you to use the program for a little time before purchasing. Before making a purchase decision, this might be an excellent method to gain a sense of the features and usability of the software.

Another way to save money when selecting invoice software is to look for discounts and promotions. Many online invoicing software companies offer discounts for organizations that purchase in bulk, so it can be worth looking into whether your small business is eligible for discounts. It is also worth exploring whether any software companies have special promotions or discounts at the time of purchase.

The price of continuous software maintenance and updates should also be considered. Additional fees for updates and bug fixes may exist depending on the software. Some software providers may charge extra for customer support or additional features or customization. Evaluating the cost of ongoing maintenance and upgrades can help you determine the total cost of ownership for the software.

Tips for choosing the right invoicing software for your small business

Selecting the appropriate invoicing software is crucial for your small business to have effective and precise invoicing procedures. The wrong software can lead to costly mistakes, delays, and even lost revenue. Before deciding, it's important to evaluate and compare the features and costs of different software solutions. Here are some suggestions to assist you in selecting the ideal invoicing program for your requirements: 

First, think about the accounting program you already use. Many invoicing software solutions are designed to integrate with popular accounting solutions like QuickBooks or Xero. If you already have an accounting solution, look for invoicing software that is compatible with it. This might save you time and money because you won't have to purchase new software or transfer data between platforms.

Second, read the reviews. Before settling on a particular software solution, take the time to read user reviews online. This can aid in your understanding of the software's dependability and interface usability. Read reviews from other small businesses like yours to get an honest opinion.

Third, take advantage of free trials. Most invoicing software companies offer free trials, so take advantage of this opportunity to try the software before purchasing. You will get the chance to learn about the program's features and functions and any potential problems you could encounter.

Finally, look for customer support. It's crucial to have access to customer assistance if you run into any problems or have queries regarding the product. Look for companies offering live customer support, which can be invaluable if you have any problems or questions. It's also crucial to guarantee that the software is routinely updated and maintained in order to guarantee that your data is up-to-date and secure. By evaluating different software solutions and considering your specific needs, you can make sure you choose the right invoicing software for your small business. 

Manage your invoices better with B12

Ensuring your invoicing software properly integrates with other systems, like your accounting software and website provider is crucial. This will guarantee that all pertinent data is shared between systems and that your invoices are correct and current. Additionally, it’s important to ensure you’re taking advantage of all the features your invoicing software offers. There are various ways you may utilize your invoicing software to optimize your business procedures, from personalizing invoices to creating recurring bills.

Similarly, it’s worth setting up automatic accept online payments and sending reminders so that your customers have no excuse for missing payments. In the long run, you will save time and effort by doing this, and your payments will be paid on time. In addition, it’s essential to regularly review and update your invoice tracking software to ensure that you’re using the most up-to-date version. This will ensure that you’re taking full advantage of all your software's features and being up-to-date on any new features or changes implemented.

B12 offers an invoicing solution that seamlessly allows you to send invoices to clients. With our built-in payments and invoicing functionality, you can streamline the billing process and receive payouts faster. You can also automate invoicing workflows, saving you the time and hassle of sending out payment reminders or recurring invoices. What’s more, your invoices will automatically match your branding and website for a more cohesive experience.

Get high-quality email automation, online payments & invoicing built into your online presence with B12. Launch a professional, branded website in 30 days or less with everything you need to attract, win, and serve clients. Start today!