Regardless of what business you are into, whether you are a web designer, you own a boutique, or an online marketing expert, manufacturer, service provider every business needs invoicing. It is the most natural part of any business process; but it absorbs a lot of the time of the entrepreneurs which could have been used for other productive activities.
In this blog, we will discuss what are various options available for online invoicing, the benefits it offers, and what all points you need to consider before choosing the right invoicing software for you. How these softwares make your tedious job of invoicing easy.
What are invoicing softwares?
Invoicing software is a digital tool or an application that assists small and medium-sized businesses in creating, managing, and processing invoices for the products or services they provide to their clients or customers.
This software is designed with the unique needs of businesses in mind, offering user-friendly features that simplify invoicing tasks, enhance accuracy, and facilitate timely payments. It typically includes essential functions such as invoice generation, client management, expense tracking, and reporting, all aimed at helping MSMEs maintain financial records, improve cash flow, and efficiently manage their billing processes within their budget constraints.
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Here are a few examples of Invoicing Softwares’ :
There are many invoice creating softwares options available for businesses. Here are a few examples:
1. Zoho Invoice:
Zoho Invoice is an invoicing and billing software that allows businesses to create customizable invoices, accept online payments, and automate payment reminders. It also offers time tracking and project management features
2. My Bill Book:
myBillBook GST billing software helps businesses create professional invoices in just a few clicks. In the post GST era, businesses need to provide GST-compliant invoices. myBillBook provides easy GST billing by auto-populating all the mandatory fields like GSTIN, HSN/SAC code, GST rate, etc. Selecting the appropriate value is all you need to do.
3. Wave:
Wave is a free accounting software that offers invoicing features. It allows businesses to create professional-looking invoices, track payments, and accept online payments.
4. Xero:
Xero is a cloud-based accounting software that offers invoicing features. It allows businesses to create customized invoices, track payments, and automate payment reminders. It also offers inventory management and expense tracking features.
5.Swipe:
With Swipe, create invoices, purchases, and quotations in less than 10 seconds and share them directly with customers/ vendors via WhatsApp, SMS & Email.
E-Way bills, E-invoices, Export/SEZ/ Multi-currency invoices can be made with a click on Swipe. You can instantly generate GSTR-1 & 30+ reports and get all the insightful analytics you’ll need for your business.
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6.Microvista:
Comprehensive e Invoicing Software that is compatible with every ERP systems Generate e-Invoice and receive QR code & IRN number instantly.
These are just a few examples of invoice creating apps and software options available for businesses. All it needs is to evaluate your business needs and compare features and pricing and choose the right software for your business.
What all Invoicing softwares offer?
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- Payment tracking: Many invoice creating softwares come with payment tracking features. This allows entrepreneurs to keep track of payments received and outstanding payments. This helps businesses to manage their cash flow more effectively and to follow up with customers who have not paid.
The use of invoicing softwares has been found to improve payment times. In a study by Fundbox, businesses that used invoicing software were paid 17 days faster on average than those that did not use software.
- Professional image: Using an invoice creating software can help businesses to create a professional image. Customers are more likely to take a business seriously if they receive a well-designed, professional-looking invoice.
- Tax compliance: Many invoice creating softwares offer tax compliance features, which can be particularly important for MSMEs. These features help businesses to comply with tax laws and regulations, reducing the risk of penalties and fines.
- Invoicing software provides real-time data validation by cross-referencing customer GSTINs with the GSTN database, minimizing the chances of dealing with erroneous or unregistered GST details. It also accommodates complex scenarios like the reverse charge mechanism, where the recipient is responsible for GST payment, and seamlessly integrates these calculations into invoices when applicable.
- Additionally, invoicing software can assist with GST filing by directly submitting returns to the GST portal, simplifying the compliance process and reducing the risk of missing deadlines or making errors during filing.
In India, the Goods and Services Tax (GST) regime has made invoicing software mandatory for businesses with a turnover of more than Rs. 1.5 crores (Source: Economic Times)
Invoicing software helps businesses in various ways like saving the time by automating the invoice creating software, tracking payments and many more. Let us have a look at what all it offers:
- Time-saving: Invoice creating softwares automate the invoice creation process, which saves time for businesses. Instead of manually creating invoices, business owners can use an software to generate professional-looking invoices quickly and easily.
In India, mobile invoicing softwares are gaining popularity due to the increasing use of smartphones. According to a report by software Annie, India was the world’s fastest-growing mobile software market in 2020.
- Accuracy: Invoice creating softwares can help the businesses to avoid errors in invoicing. These softwares ensure that invoices are created accurately, with correct pricing, taxes, and discounts. This helps to avoid discrepancies in billing, which can negatively impact customer relationships.
Points to keep in mind before choosing Invoicing tools/softwares
When choosing an invoicing software for your business, there are several essential points to consider to ensure it meets your needs and preferences. Here are some key factors to keep in mind:
- Features and Functionality: Evaluate the software’s features and functionality to ensure it covers all your invoicing requirements. Common features include customizable invoice templates, automatic calculations, tax management, recurring invoices, payment reminders, and expense tracking.
- User-Friendly Interface: The software should have an intuitive and user-friendly interface that allows you to create and manage invoices without a steep learning curve. A clutter-free and organized layout will enhance your overall experience.
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- Customization Options: Look for softwares that allow you to customize invoice templates with your branding elements, logo, and color scheme. Personalized invoices create a professional impression on clients.
- Mobile Accessibility: If you often work on-the-go, consider an invoicing software that has a mobile version or is accessible through mobile browsers. This will enable you to create, send, and manage invoices from your smartphone or tablet.
- Integration and Compatibility: Check if the invoicing software integrates well with other tools and software you use, such as accounting software, payment gateways, and project management platforms. This will streamline your invoicing process and reduce manual data entry.
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- Payment Options: Ensure the software supports multiple payment methods, such as credit cards, bank transfers, PayPal, and other popular payment gateways. Diverse payment options make it convenient for clients to settle invoices.
- Security and Data Protection: Verify the software’s security measures and data encryption protocols to safeguard sensitive financial information. You should feel confident that your data is secure and protected.
- Customer Support: Good customer support is crucial in case you encounter issues or have questions about using the software. Check if the software offers adequate customer support through email, chat, or phone.
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- Scalability: Choose an invoicing software that can grow with your business. Consider your future needs and whether the software can handle increased invoicing volume and additional features as your business expands.
- Cost and Pricing Structure: Evaluate the software’s pricing model to ensure it aligns with your budget and usage requirements. Some softwares offer free plans with limited features, while others have subscription-based pricing tiers.
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- User Reviews and Reputation: Read user reviews and testimonials to get a sense of other users’ experiences with the software. Consider the software’s reputation and reliability in the market.
- Trial Period: If possible, opt for an invoicing software that offers a free trial period. This allows you to test the software’s features and suitability for your business before committing to a paid plan.
By considering these points, you can make an informed decision when selecting the best invoicing software to manage your business’s financial transactions effectively.
In summary, invoice creating software is important for MSMEs because they save time, ensure accuracy, help to manage cash flow, create a professional image, and ensure tax compliance. By using an invoice creating software, MSMEs can streamline their invoicing process, improve their financial management, and provide a better customer experience.
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