If you run your own business, chances are you spend a substantial amount of time tracking your expenses, tallying up your hours, calculating taxes, creating invoices, and billing clients.
For many business owners, all of these tasks represent additional time commitments above and beyond the time you put into the product or service that you sell. Tracking finances and invoicing clients can quickly become a source of frustration and stress.
That’s where invoicing software and applications come in. These applications are designed to simplify the billing process. If you have difficulty keeping track of which invoices have been sent and which invoices have been paid, or you want something more professional to send to your clients, invoicing software is the perfect solution.
Among invoicing software available, FreshBooks is one of the most well known. Other options worth a look include Tipalti, Fusebill Subscription Billing, TimeSolv, Vorex Project Management Suite, NetSuite, BillQuick, Recurly Subscription Billing, Abak, Plooto, Replicon TimeBill, WorkfloMax, EngageIP Billing/OSS, Unanet, Avantage Commerce, Anytime Collect, Bill4Time, Zoho Invoice, Zoho Subscriptions, Intacct Financials, and many, many more. The best option for you will likely depend on several factors which you should consider before you purchase software.
Here’s what to consider when choosing an invoicing application:
- Do you need invoicing, accounting, or both? More and more cloud-based accounting programs include invoicing capabilities. The benefit to having both is that you can integrate your invoices with your in-house accounting. In addition, since the price of invoicing software is comparable to that of accounting software including invoicing, it’s worth considering.
- Do you need cloud-based or local software? These days, there are a wide variety of cloud-based options. Locally installed accounting options are slimmer, but still possible to find. The advantage of cloud-based programs is that they store all your data and back it up automatically, and you can access the information wherever you are.
- Are you willing to pay for software? If you require advanced features, chances are you will have to pay. On the other hand, if all you require is something basic, you can usually find it for free.
- What features do you need? You should narrow down a list of features that you need in your invoice software. These may include recurring invoices, financial reports and summaries, sales taxes, customizable invoice templates, payment reminders, multi-currency, discounts, automatic receipts, late fees, auto-billing, expense tracking, estimates and quotes, and a portal for your clients.
Invoice Factoring Software
Invoice factoring is a method of selling your unpaid invoices or accounts receivable to a third party. Simply put, it’s a way of accessing money based on what you are owed by clients for goods and services which wouldn’t be paid until later. For small business owners, invoice factoring software allows them to turn unpaid invoices into money which can be used now. An invoice factoring firm or company usually provides this software. Some examples include FactorFox, Invoicera, Comcap Factoring, and Factor Funding. Applications provided by these companies may be a good option for small businesses with clients who are slow to pay their invoices.