Why Using Digital Invoicing Software Is Important for Small Businesses – Plus Our Top 5 Recommended Software

Invoicing is the final step between delivering a product or service and getting payment from your customers. A fast and efficient invoicing process will improve your financial management, provide an exceptional customer experience, and increase your chances of receiving payments on time.  

In our rapidly changing world, the only way to perfect your invoicing system is to go digital. Digital invoicing, also known as e-invoicing, is the process of automating and managing your invoices totally online. With a good digital invoicing software solution, your accounting flow will be significantly simplified. Sending and receiving invoices will cost less time and money, freeing your mind from tedious administration work. 

Read on to learn more ways digital invoicing software can help you and your business, and get the top 5 recommended applications on the 2022 market right now.  

Benefits of using a digital invoicing software solution 

Get paid faster and improve cash flow 

Using digital invoicing software lets you automate almost every step of the traditional invoicing process: allowing you to create, edit, and send invoices directly from your software or to send tailored reminder emails before the due date. This ensures an efficient invoicing system – customers receive invoices quickly, and you will get paid faster too! On top of that, receiving payments quickly and on time also improves your cash flow – making it easier to keep track of and forecast your finances. 

Increase accounting accuracy 

Humans tend to make mistakes, especially when dealing with a lot of small details and numbers. Digital invoicing software takes that worry and risk away by offering automation, improved visibility, and end-to-end tracking. This significantly reduces common human errors like duplicate payments or miscalculations. Digital invoicing solutions will ensure precise, correct data for your accounting records. 

Enhance your relationship with customers 

Every customer wants a quick, accurate, and modern invoicing system. Using digital invoicing software means you won’t waste any more of your customer’s time than necessary and minimize any unwanted misunderstandings. Stay on top of your invoicing and keep your customers happy!

Top 5 recommended digital invoicing software 2022 

You will find below the five most popular and highly recommended digital invoicing software on the market today.

1. FreshBooks – best digital invoicing software for small businesses and freelancers 

FreshBooks is a famous invoicing application for small businesses and freelancers. This digital invoicing software allows you to customize and send unlimited invoices. Additionally, you can check to see if a client has received or paid an invoice, and you can even see if they’ve viewed it. With automatic late payment reminders and fees and insightful business reports, FreshBooks offers various features to help you refine your invoicing system.  

  • Pricing: From $15 user/month.
  • Best for: Small businesses and freelancers.

2. QuickBooks – best digital invoicing software for SMEs and freelancers

QuickBooks is an easy-to-use cloud accounting software that can help you organize your invoices quickly. With QuickBooks, you can send custom online invoices from any device, schedule recurring payments, and transact in multiple currencies. QuickBooks 

automatically saves your data in the cloud and syncs across your devices, making it easy to run your business on the go.

  • Pricing: From $10.36 user/month. 
  • Best for: SMEs and freelancers.

3. Xero – best digital invoicing software for mid-to-large-sized businesses

Xero is another secure and reliable software solution for your business. This digital invoicing software also accepts a wide range of online payments (e.g., debit/credit card, PayPal, Stripe, etc.) and lets you bulk-invoice customers – which can save you a lot of time! Xero also guarantees 24/7 customer support to help you solve any issues or problems you have, at any time while using their service. 

  • Pricing: From $12 user/month.
  • Best for: Mid-to-large-sized businesses 

4. Invoice2go – best digital invoicing software for those with low invoicing volume

Invoice2go is a basic yet efficient online billing software. It’s a great choice if you are only looking for invoicing software without additional functionality. Invoice2go allows you to create a customized invoice with a broad range of templates, similar to other top invoicing software. You can also see when your clients view your invoices and have payment reminders automatically sent before the due date. Invoice2go also provides charts and reports of your business’s financial performance for further analysis.

  • Pricing: From $59.99 user/year. 
  • Best for: Sole proprietorships, freelancers and very small businesses with low invoicing volume

5. Wave – best digital invoicing software for freelancers and startups

Wave is a free cloud-based invoicing software – a perfect option for small, newly established companies. This software allows you to make and send professional customized invoices, estimates, and receipts. You can also set up recurring invoices to automate your billing and track the status of your invoices on the go so that you can know when to expect money in your bank account allowing you to manage your cash flow better. It’s even better if you’re already using Wave accounting software! This is because all your invoicing data will be automatically synced and transferred to the accounting software for bookkeeping records. 

  • Pricing: Free.
  • Best for: Freelancers and startups.

Final thoughts 

While invoicing software can help you digitize and manage invoices and receipts issued from your business, what about the ones you receive from your business partners like a purchase receipt or bank receipts? Aren’t you tired of seeing them laying everywhere in the office? How can you organize and keep them in order? 

Shoeboxed can help you. 

Shoeboxed is an online application that helps you clear your piles of documents and turn them digital in just a click. This mobile app automatically extracts and categorizes important data from your receipts, which then gets manually checked and approved by a team of data experts. You can scan receipts, manage expenses, store business cards, and track business mileage easily, helping you boost productivity and bring in more revenue. What’s more, Shoeboxed integrates with almost every accounting software on the market, so you can import and export data between apps easily. 

Quick, reliable, and trustworthy, Shoeboxed guarantees to organize your receipts in the best way possible! 

Go paperless with Shoeboxed now! 

5 Ways to Get Clients to Pay Your Invoice on Time

You can’t force clients to pay you on time, but here are some steps you can take to give yourself a better chance of receiving a paid invoice on time, courtesy of our friends at GoDaddy Online Bookkeeping.

This guest post is brought to you by GoDaddy Online Bookkeeping (formerly Outright) the simplest way to manage your small business finances online. Sign up today and get started invoicing online!

Staring at your empty bank account balance when you know you’re owed money is one of the most frustrating things in the world. If only your clients would pay on time – but it’s not like you can force them, right?

Well, no you can’t, but you can take steps to give you a better chance of getting what you’re owed on time. The following five tips should show clients you mean business about your business relationship and getting paid on time.

1. Ask for a Contract Every Time

Have you ever been faced with the scenario of your brother-in-law asking for you to do some work, or maybe a client you’ve always wanted approaches you and they ask to “forego the contract?” Likely you either feel obligated or afraid you’ll lose out on the opportunity, so you agree to forget the paperwork and just do the work.

But what happens when you need to get your money? Suddenly they also “forego” paying you, and if there’s no contract, you have little recourse for getting your money. No matter who it is, get a contract each and every time you being a project. Not only does a contract prevent problems, it can also give you piece of mind so you can concentrate on the work.

2. Be Detailed

Don’t just throw your contract together at the last minute. Be as detailed as possible about the work you will perform and your expectations for the client. Be specific about dates and deliverables. For example, if the project has multiple parts, include when you’ll turn each part in as well as when the client should pay up. Don’t forget all important payment terms (NET 15, “pay on receipt,” etc.) and a late fee to dissuade slow payers!

3. Accept Multiple Payment Types

One of the last things you want to do is restrict a customer who is trying his or her best to give you money. If you tell them you only accept credit cards and PayPal, suddenly they only have a check. Don’t give them the chance to provide any excuses; accept as many payment types as you feasibly and safely can. Otherwise, it will just be another excuse for them to delay payment.

4. Let Them Pay Up Front

This is a phenomenon that’s practically impossible to understand: some business owners don’t want to take payments from clients even when they offer! However, it does happen. A customer wants to go ahead and pay for the job even though the work isn’t done, but the business owner pushes it away telling them to wait. (This phenomenon seems to occur most often at the end of the year, as the client is getting their tax write-offs in order!)

Look, it’s very noble, but if the client wants to stay ahead of the game on their end, let them! Just let it be further incentive to do a good job on the project and you won’t have any problems.

5. Make Them Remember You

It may seem like another excuse (and it might be), but “I was just so busy” is definitely a reality many business owners face when it comes to their obligations. You know as well as any other entrepreneur that sometimes things just slip your mind when you have 10,000 other tasks you have to accomplish. If a client is late paying, follow-up frequently and persistently. After all, it’s your money.

GoDaddy Online Bookkeeping recently introduced a new Invoicing feature. Now it’s simpler than ever to manage all of your small business finances in one place. Login to GDOB and customize your invoices under the new “Invoices” tab today!

7 Tips to Get Paid Faster

Every freelancer wants to get paid faster, or even paid on time. Here are the top seven payment excuses freelancers hear most often and how to handle them.

This guest post is brought to you by WePay – the easiest way to accept credit cards online.

So many clients, so many excuses. We’ve all had that client who is extremely open and willing to talk… until the subject of money comes up. Suddenly they’re a ghost and nowhere to be seen. When you do get in contact with them, they have endless excuses to throw at you.

Every freelancer has at least one story like this. Don’t you wish there was a way to make the process easier and more streamlined? Check out the following common excuses we’ve heard and see how to combat them so that you can get paid faster.

1. I was confused.

The last thing you want to hear when you complete a job is “Huh? This isn’t what I wanted,” or “So what happens now?” Confusion is a common excuse for clients that basically indicates they aren’t ready to pay you yet. The trick here is to be very specific with the job description. Go over every single little detail with them, including when they will pay and how, so there’s no confusion when the invoice is due.

2. Where and how do I pay?

Speaking of payments, don’t give clients any chance to wonder how to pay you. Some prefer checks. Others prefer credit cards. Still others prefer a simple solution like paying by credit card online with WePay. If you just offer one way to pay, though, some clients will use this as an excuse – warranted or otherwise – to delay your payment. Offer numerous payment methods, and it’s likely that you’ll get paid faster.

3. I couldn’t contact you!

Another common issue clients have is getting in contact with you. Like payment options, you want as many ways to contact you as possible. Don’t just rely on email; create invoices that include your phone number, physical address and other means of contacting you.

4. I never got an invoice.

Want them to be punctual? Then you should be, too. Lead by example and don’t turn anything in late, including your invoice. Even though you were super specific when they should pay, some people won’t pay until they see an invoice. And if you’re very late sending out the invoice, they may have forgotten about the great job you did, creating a further delay.

5. I didn’t hear from you, so…

Sometimes you get the feeling in the pit of your stomach that a client is going to be a problem. Unfortunately we don’t always follow up on this feeling and let things go. However, you shouldn’t be afraid to follow up with a client. Email them to ask if the work was ok or if they have any questions – anything to keep you in their mind.

6. I didn’t think this job was that serious?

This is one of the most infuriating excuses you can hear, as it practically invalidates your entire career. Generally what they mean, though, is they don’t feel “invested” in the relationship. Combat this with a deposit. Suddenly instead of hiring some random person for a new banner for their website they’re hiring a professional who requires money to initiate the business transaction.

7. Eh, there’s no contract, so what are you going to do, sue me?

Obviously the solution is in the excuse here. Many freelancers and small business owners don’t like to mess with contracts as they see them as annoying or as a possible bane to clients. However, they prevent problems, including non-payment by fussy clients. Just make sure every little detail you agree to with the client is in the contract.

Do you have a slow or non-paying client story? How did you collect your money? Tell us your tips to get paid faster in the comments!