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! 

Shoeboxed is a SaaS Superstar!

At Shoeboxed, we offer a scanning service for receipts and business cards and online software to organize the information that we digitize. Though the scanning portion of what we do is clearly a service, it’s important to remember that the software is itself a service as well. We don’t give you the software and set you free, never to hear from us again. Shoeboxed tries to form a relationship with our customers so that we can provide them with more customizable experiences, customer support and anything else they might need to get their receipts and business cards organized as easily as possible. We are part of the emerging trend of companies that provide software as a service.

Companies offering software as a service (SaaS) are relatively new concept, and offer many benefits over traditional out-of-the-box desktop software. I was fortunate enough to talk about this emerging trend with some other representatives of SaaS companies yesterday.

You can read more about it and listen to the segment on Cloud Ave.