Before we jump to the billing and invoice software, let us have a look at the basics.
What is an invoice?
So, an invoice is a list of products or services with their prices. The prices mentioned is what is owed by the seller from the buyer. These invoices come in various forms – handwritten, word-based or software based.Whatever the form looks like, it has a basic template which is followed with every sale.
What is Billing and Invoice Software?
Billing and invoice software is the easiest form that eliminates various issues. The billing and invoice software is typically useful for small businesses. Reason being, a small business cannot afford to employ an entire finance department. The tasks related to online billing and invoice software can be carried out by a couple of people. This process automates and swifts the procedure with aid to concentrate on other important tasks.
Online billing and invoicing system have been proved to be beneficial to small businesses in varied ways. For instance:
- It helps the company to speed up the tasks;
- It supports quick billing;
- Storage is not a problem with online billing and invoicing system;
- Extended storage can be availed through cloud storage if required;
- It can generate a report and in turn, saves time for the same;
- The online system does not require any extended set-up and is easy to use;
- One can create or customize the invoice based on the requirements.
How does an online invoicing system work?
- Create or customize an invoice;
- Fill in the product or service details;
- Send it to the buyer;
- Receive payment;
- Develop reports.
Types of Billing and Invoicing Software
There are various types of billing and invoicing software that includes free and paid software. Some of the most accurate software are high in price due to their complex set-up and accuracy. The three basic types are:
1. On-premise: On-premise billing and invoicing software come with a single license. It requires in-depth set-up and is costly. The reason for this range of software is its complexity, in-depth set-up including hardware set-up. On-premise software works on the local server of the client.
2. SaaS Software: Software-as-a-service (SaaS) invoicing generally comes in monthly packages. These softwares are mid-range to high-range. Unlike on-premise software, it works on vendor’s server. As it works on the vendor’s sever, maintenance, installations and updated are done by the service provider itself.
3. Cloud-hosted: Cloud-hosted billing and invoicing software are generally free or the basic ones. In this type of software, theclient doesn’t need to pay for maintenance or installation expenses. They have the universal access and doesn’t need updating from the client’s end.
Benefits of Billing and Invoicing Software
Billing and invoicing software is always beneficial for business. Some of the key reasons to it are:
- Minimizes errors : A standard template reminds the user of all the required data. This decreases the probability of errors.
- Saves time : Invoicing software can save ample time. It has a predefined template, customer records, etc. that helps the user to make the invoice promptly.
- Decreases missed or delay in payments : The software has a feature to track your due payments. This allows you to process the payments as and when due.
- Maintained accuracy : The invoicing software helps in maintaining accuracy with the help of standard structure.
- Maintained image : A well-structured and a good template of invoice helps in setting the brand image. Likewise, it maintains the image with consistent use of a standard template that consists of company details.
Billing and invoicing software have proven benefits. A proper process can help to reduce administrative costs tremendously resulting in savings. Also, if you are looking for maintaining your cash flow, you can consider using invoicing software. Gradually, you will experience the change that comes with the consistent use of billing and invoicing software.