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! 

Using Shoeboxed Helped Save This Small Business Over $10k

After a sprinkler incident resulted in thousands of dollars of damage, Athens Bagel Company owner David Asman used Shoeboxed to submit and receive the insurance claim that allowed their business to reopen and thrive. Read their story!

With Shoeboxed, there has never been one “best” way to use our service to stay organized. And after processing over a billion dollars of expense data since 2007, we say that from years of firsthand experience!

Shoeboxed takes enormous pride in serving clients from around the country and across the globe, all of whom use our service in a myriad of ways to fulfill a whole host of organizational needs in both their personal and professional lives.

“I am so glad that I was using Shoeboxed diligently to keep track of all my important business documents so I had all the documentation I needed to submit (and receive!) my insurance claim of over $10,000.”

-David Asman

David AsmanIntroducing: David Asman

Profession: Owner, Athens Bagel Company

Location: Athens, Georgia

Find them: @AthensBagel on Facebook, Twitter and Instagram

Shoeboxed: Hi David! Thanks for taking the time to share your story with us. Let’s start with a little background on you.

David Asman: Sure. I’m a 31 year old Athens, GA resident. Athens has been my home for 13 years since I moved here in 2010 to attend the University of Georgia. I graduated from UGA with a Chemistry degree and bartended for over seven years before opening up Athens Bagel Company.

SBX: Had you always known you wanted to be a small business owner? How did Athens Bagel Company come to be?

bagelsDA: I didn’t grow up thinking I’d be a small business owner, but after bartending for so long and learning, that business entrepreneurship started growing on me.  Athens is a great college town but was missing a bagel shop.  A friend and I got together and decided we’d open one up — having never baked a bagel (or even worked in a restaurant)!  Almost three years later we have spawned a couple of competitors, but are still the fan favorite in town.

SBX: That’s awesome– good for you! So since Athens Bagel Company is your first business, we bet it took you awhile to figure out workflows that worked for you. For example, how did you track receipts and invoices before using Shoeboxed?

DA: I used to scan my receipts, invoices, and all important documents for the bagel shop manually, and then I’d save them as PDFs on my computer. It was a mess. Nothing was searchable and it took up both physical and digital space…plus it required actively sitting at the scanner and naming each file. It didn’t work. Now I don’t have to spend time keeping up with all the paperwork, and I no longer have a filing cabinet full of documents and a hard drive full of unsearchable documents! Shoeboxed resolved all my issues — I’m so glad I found you guys!

SBX: We are too! When we first chatted, you mentioned you had quite a story to share about how Shoeboxed help save your business. Would you mind sharing it?

Athens Bagel CompanyDA: Absolutely. About three and a half months ago, we had a fire sprinkler go off in our kitchen around 4:30a.m., shortly after my baker had arrived for the day. The shutoff for the system is located in an adjacent building that we didn’t have access to at that time, and the only person that did have access was unreachable for about two hours.

The sprinkler heads in our building put out approximately 50 gallons of water per minute, so you can imagine how much water had accumulated in the shop. The fire department did their best to contain the water, but there was still considerable damage to the building, equipment, food, and supplies.

While filling out the insurance documents, I was required to provide full receipt details for everything that was damaged in the shop. We have a variety of vendors and place several orders every week, and many of the food items vary in price across different orders. Making that report was daunting enough, but it would have been impossible without the help of Shoeboxed to provide exact dates/prices/payment details along with a PDF that I could send along to the insurance adjuster as proof of purchase. I am so glad that I was using Shoeboxed diligently to keep track of all my important business documents so I had all the documentation I needed to submit (and receive!) my insurance claim of over $10,000.

SBX: And we’re glad that we could help you after such an unfortunate event– and even more thrilled that Athens Bagel Company is open and thriving! :) So what would you say is the biggest benefit you get from using Shoeboxed?

DA: Something is always going on in the restaurant business… there are no slow days or slow times. We are open seven days a week, and I work each and every one of them. After writing checks, I can simply stuff my invoices in a Magic Envelope and send them to you guys when the envelope gets full. I don’t have to sit at my desk scanning and saving documents. Even when I did do it that way, I ended up with something that I couldn’t readily use. You save me time and money (and space!) by taking all of that off my hands.

SBX: Well, you just made our day, David! Our favorite part of building Shoeboxed is creating something that saves small business owners time, effort and money. What’s your favorite part of Shoeboxed?

DA: I love the search functionality, especially on the iOS app. It allows me to compare my costs across vendors and over time. I’ll often meet with new vendors and I’m instantly able to compare prices on my iPhone. It’s so quick and easy, and just another way that Shoeboxed helps me save money.

SBX: We’ve never heard that before, but it’s an awesome way to use Shoeboxed! Thanks for sharing. Anything else you want to share?

DA: Yes– if you’re considering using it, sign up now! Shoeboxed is the best filing cabinet ever.

Are you a Shoeboxed user who has a success story and would like to be featured on our blog? Then we would love to hear from you! Please reach out to Emily at emily@team.shoeboxed.com for more information.

Until next time, stay tuned… and stay organized!