Almost every business needs to issue invoices as an essential task to request payment from customers. Most accounting packages allow you to issue invoices and if you don’t use accounting software then you can use a dedicated invoicing product to help you keep track of all your invoices, send statements and reminders to help you manage cash flow.
Plenty of invoice software options are available in the market today and these products make it easy to create professional-looking invoices. These are not full-blown accounting systems like QuickBooks accounting, but with these invoicing tools you can save time and money by automating routine tasks such as adding VAT, monitoring overdue invoices, tracking expenses, and managing vendors without having to manually enter additional information. And if you sell physical products, some of the invoice platforms will also link to your ecommerce, inventory management or stock control software to automate the process of generating invoices after a sale.
Invoice software can help you enhance your business operations over time. Choosing a program that meets your specific needs is a big part of your decision making process. Be sure to compare features and pricing before making your final decision.
The Best Invoicing Software
- Xero – The Best Overall Tool for Software Invoicing
- Bokio – Smart Cloud-Based Software System
- Quickbooks – The Best Invoicing Function at an Affordable Price
- Zoho Books – Made for New Small Businesses
- Crunch – E-commerce Integrated Invoicing Software
1. Xero – Overall Best
Find out more at xero.com/uk
Xero is the best invoicing software for small businesses in the UK. It is a cloud-based accounting software that makes it easy for entrepreneurs to manage their finances and meet compliance requirements. Xero makes it easy to track what’s happening with your business by allowing you to create, send and track invoices online. It also lets you create custom reports to help you make fast and effective business decisions.
Xero’s mobile app makes it easy to properly monitor your business finances. To help you manage your cash flow, Xero enables you to set up cash flow alerts that can be triggered based on your payment terms. You will like this app if you have clients who are slow to pay. You can also integrate Xero with other apps for added functionality.
Pricing Plans
- Starter: £14 / Month
- Standard: £28 / Month
- Premium: £36 / Month
Pros
- Excellent user-friendly financial management systems
- Mobile-friendly
- Great customer support team
- Flexible payment terms and credit facilities
- Easy installation
- Extensive training material available online
Cons
- Requires constant connection to the Internet
- High cost of software subscription fee
2. Bokio
Find out more at bokio.co.uk
Bokio is an intelligent invoice software that lets you create professional-looking invoices in a few clicks. Its artificial intelligence-powered visual editor enables you to create beautiful invoices in just a few seconds. Once you create an invoice, it can be sent as a PDF directly to your client’s inbox.
Bokio also makes it easy to keep track of your expenses. It lets you create a checklist of expenses, add pictures and assign them to your clients. You can also add a date and time to each entry to track when the costs were incurred. Bokio’s integrations with cloud apps such as Slack, Trello, Asana, and Google Drive make it easy to automate daily tasks such as tracking expenses and creating invoices.
Pricing Plans
- Free trial package
- Balance: £8.99 /month
- Business: £15.99 /month
Pros
- Maximum accuracy and efficiency
- Total control over daily tasks
- Automated daily tasks
- Easy to create invoices
- G-Drive and slack integration
Cons
- Not suitable for a big corporation business
3. Quickbooks
Find out more at quickbooks.co.uk
Quickbooks is a reliable accounting management tool that also has an integrated invoicing feature. This app lets you create, send and track invoices with ease. It also lets you see a summary of your cash flow and helps you stay on top of bills due and payments received. However, it is less feature-rich than other invoicing software in this list.
While Quickbooks is a good option for starting your business, there might be better choices if your company grows. This is because it needs more flexibility to scale up with your business needs. Quickbooks can also integrate the software with online payment gateways such as PayPal to make it easier for your clients to pay the invoices.
Pricing Plans
- Self-Employed: £8 / month
- Simple Start: £12 / month
- Essentials: £22 / month
Pros
- Cloud-based software
- Frequently updated system
- Affordable price
- Excellent accounting reports
Cons
- Badly designed desktop UI
- A limited number of users
4. Zoho Books
Find out more at zoho.com/books/
Zoho Books is a software with cloud-based integrated invoicing feature. It is less feature-rich than Xero but lets you easily create and track invoices. Zoho Books is a good option if you are looking for integrated software with accounting features. Anyone can use it as a standalone invoicing software or a complementary solution to your current accounting software.
Zoho Books lets you create and send invoices. It also enables you to create reports and track your expenses. Its integrated payment feature allows you to accept payments directly from your clients through credit or debit cards. You can also export the invoices as PDFs and send them to your clients. Zoho Books also features helpful integrations with other apps such as Evernote, Google Drive, and Dropbox.
Pricing Plans
- Free package
- Standard: £12 / month
- Professional: £24 / month
- Premium: £30 / month
- Elite: £99 / month
- Ultimate: £165 / month
Pros
- Convenient for international customers
- Great customer service
- Track time and bills more effectively.
- Extended functionality for free
- Manage your contacts easily
Cons
- Limited accounting function
- Not suitable for a big corporation
5. Crunch
Find out more at crunch.co.uk
Crunch is a popular SaaS-based invoicing software. The developers have integrated various cloud apps to improve customer experience. The added apps may include Stripe, Shopify, Slack, and GoToMeeting, which makes it very helpful for businesses of all sizes. Crunch’s other features include employee timesheet tracking, expense management, and team collaboration features. The app also has a neat user interface and is very user-friendly.
Crunch’s visual editor lets you create beautiful and professional-looking invoices. It also has an intelligent algorithm that helps you optimize your invoice amount based on your business details. Crunch’s automation features, such as payment reminders and email integrations, make it a good option for businesses that do much client work.
Pricing Plans
- Sole Trader Pro: £24.50
- Limited Company Pro: £79.50
- Limited Company Premium: £121.50
Pros
- Automatic annual appraisal
- Easy to use
- Excellent cashflow tracking function
- Affordable pricing for small business
- Deadline alert notifications
Cons
- Limited financial reports
- Slow system updates
What You Need to Know When Selecting an Invoice Software for Your Small Business
You should prepare before attempting to select a suitable tool for handling invoicing. Before you launch your business, you’ll need to find the right tools to help run it smoothly. With so many options, knowing which is right for you can take time and effort, especially if this is your first time launching a company. That’s why we’ve put together this list of factors you should consider before selecting an invoice software solution for your business.
Functionality
If you’re a high-volume business owner or expecting to expand, you’ll want invoice software that can grow with you. Some solutions can scale your growing business by adding users and modules to help centralize your accounting processes. So before selecting invoice software, ensure you find one with suitable functionalities for your business.
Security
When it comes to invoicing software, security should be a top concern. You want to avoid dealing with a solution prone to hacks or data breaches, so make sure you find a service equipped with the latest security features. Additionally, consider a cloud-based solution for added security. Cloud-based services use advanced encryption tools to protect your data from cybercriminals. These services also feature user-based access controls, meaning only authorized personnel can view your data and sensitive information, keeping your data even more secure.
Ease of Use
When selecting invoice software for your small business, you want to make sure it’s easy to use for your team and customers. Ideally, you want a solution that anyone in your organization can use. You want to avoid onboarding people in a complex invoice tool that may take them a while to learn. Another consideration is how easy it is to use for your customers. You want to avoid manually creating invoices on your computer and then handing them off to your clients. Instead, you want to be able to create and send out invoices from your mobile device, so you’re not sitting at your computer all day.
Cloud-based Software
Most businesses today use cloud-based services to store their data, and for a good reason. Cloud-based services make it easier for you to use any data stored on different devices from your preferred location or anywhere. And if you ever need to switch providers, you can quickly transfer your data to a new service. You also don’t have to worry about buying expensive hardware to store your data. Instead, you can use a service that allows you to keep your data in the cloud for a small monthly fee.
Banking Compatibility
When choosing invoice software, you’ll want to ensure it integrates with the banks you use. Most major banks have online platforms that allow you to send and receive money from customers. You don’t want to manually log into each bank every time you want to send or receive money. Instead, you want to find an invoicing solution that allows you to do this directly from the software. Ideally, it should allow you to create and send out invoices from the bank.
Cloud-based Service Compatibility
Most businesses these days operate on a cloud-based system, and many invoice software providers have also moved to this model. Cloud-based services are gaining popularity because they allow companies to avoid the steep upfront hardware cost. Instead, you’re paying a monthly subscription that gives you access to the same features as a traditional server-based system. So, if your business grows and needs more functionality, you can easily add more modules to the software.
Frequently Asked Questions (FAQs)
- What is invoicing software?
Invoicing software is a type of business software that helps businesses manage and track their invoices. This software can automate many invoicing processes, making it easier and faster for companies to get paid. Invoicing software can also help businesses keep track of their spending and budget more effectively.
- Can you use Excel for invoicing?
Yes, you can use Excel for invoicing. You’ll need to set up your spreadsheet with the appropriate columns for your invoice, including items, prices, quantities, and totals. You can then enter your invoice data into the spreadsheet and use formulas to calculate the totals. Finally, you can print out your invoice or save it as a PDF.
- Should you send an invoice with a PDF or Excel file?
This depends on your preference and what is easiest for you and your client. If you are comfortable working with PDFs, sending a PDF invoice may be the best option. However, sending an Excel invoice may be better if your client prefers Excel files. Ultimately, it is up to you and your client to decide what format works best for both of you.
- What information should you put on an invoice?
First, include the invoice’s date, name, and contact information for both the customer and the business.
Next, list all the items or services provided and the corresponding prices. Finally, include the total amount due and the terms of payment.
- Do I need to put my EIN on an invoice?
If you are a sole proprietor, you may use your Social Security number as your EIN. However, you must obtain an EIN from the IRS if you have a partnership or corporation. But, there is no legally binding rule stating the invoice must feature your EIN.
Conclusion
Invoicing is an essential part of running a successful business. Although it is not an exciting task, it is a necessary one. However, you can do it with the best invoicing software for small businesses. These software programs make it easy to manage your business finances and let you invoice your clients with ease. If you are looking for an easier way to create invoices and track your expenses, choose one of the options above.
