What Is Billing and Invoicing Software?
Billing and invoicing software helps individuals and companies better manage their finances. It makes it quick and easy to create invoices and bill for work that is completed. It also includes tools that make it easier to keep track of invoices, including invoice payment status and invoice open alerts.
Some billing and invoicing software includes additional features, like time tracking capabilities, estimate creation, and project management tools. These extra tools can help a business run more efficiently and keep organized. Most billing and invoicing software brands provide automated capabilities, making it possible to eliminate manual tasks so companies can save time.
Without the use of billing and invoicing software, it’s common for businesses to make invoicing mistakes and fall behind on invoicing work and receiving payments because of all of the required manual work. It can also make it harder for businesses to understand their current financial situation — like seeing what invoices are outstanding and cash flow data.
Benefits of Billing and Invoicing Software
Businesses of all types and sizes struggle with their invoice and bill management. The good news is software can help in many ways, and it can provide various advantages. Here are some of the top benefits of using billing and invoicing software:
- Save time. Billing and invoicing software can cut down on the time it takes to handle invoicing tasks. Some software also has automated capabilities, which save even more time. This allows companies to focus more on other needs.
- Get paid faster. This software can also make it easier to get paid. With invoicing and billing software, subscribers can get paid on time and get paid faster.
- Organize invoices. With these tools, it’s easier to keep track of invoices and the status of each invoice.
- It makes paying bills easier for customers. Customer convenience is also an important consideration, and billing and invoicing software can make it easier for customers to pay their bills.
- Stop forgetting to bill. When a company’s billing is disorganized, it can be easy to forget to bill a customer. The right software can eliminate forgetfulness.
- Minimize errors. Billing and invoicing software can also minimize errors so bills are more accurate and you’re maximizing your company’s earning potential.
Must-Have Features of Billing and Invoicing Software
There are many billing and invoicing software options out there. Before a business invests in a software option, it’s important to carefully compare each brand’s capabilities. Not all billing and invoicing software options have the same features. Here are some of the top features that should be offered in a billing and invoicing product:
- Estimate and invoice creation. Good billing and invoicing software will make it possible to create both estimates and invoices.
- Custom invoices. It should be easy for businesses to customize invoices to meet their needs, including custom branding.
- Alerts and reminders. The right software will include alert and reminder tools that help you and your customers stay on track of bills and payments.
- Auto workflows. It should be easy to automate certain billing and invoicing tasks to save time and minimize manual work.
- Integrations. It should be easy for companies to integrate existing software as well as payment processing tools.
- Reporting tools. Billing and invoicing software should also have reporting tools so that customers can easily view and analyze detailed reports about their financials.
- Payment processing. Many billing and invoicing software companies include payment processing within their program to make it easier for clients to pay.
- Multiple currency support. It should also be easy to bill in multiple currencies to continue to work with international clients efficiently.
The Cost of Billing and Invoicing Software
To use a billing and invoicing software with a good amount of features, companies can expect to pay for a subscription. Most software companies offer flexible payment options, including monthly and yearly plans. Some companies charge a per-user fee, while others have a flat fee in place.
It’s essential for companies to consider their own needs, what tasks they want to handle with the software and how many users will be using the tools before deciding on the right billing and invoicing software to buy. They can then compare the subscription costs available.
Pricing varies greatly, but companies can expect to pay at least $10-$20 per month for billing and invoicing software with nice features. For more advanced software, the fees can be higher. For example, $30-$150 per month is a typical price point. Many software companies offer discounts for annual billing.
While it’s rare, some companies do offer a lifetime subscription for their software. This option can help businesses save on software subscription costs, but it usually costs a significant amount of upfront money. Most billing and invoicing software options charge additional fees for credit card processing.