You must bill your customers to pay for the services rendered in any business. For service providers, sending a bill is a document for the amount to be paid. An invoice is proof of purchase made and provides the breakdown of expenses, i.e., the sale price of goods plus taxes. The invoice contains the vendor’s name, address, contact details, tax registration number, etc.
Why Invoicing Software is Essential?
Your invoice must have the standard format for accounting and legal purposes. Essential details like the details of the customer, payment terms and conditions, what product was sold, and the breakup of tax component payment due date if sold on credit. The clarity in all the details helps avoid disputes concerning any defects in goods or services and the amount the customer needs to pay.
Many times business owners forget to bill the clients. Equally, the customers fail to pay on due dates to break up the hectic work schedule of both parties. The invoicing software also acts as a reminder. Emailing invoices has made billing faster and more accessible, and one can keep track of all the payments received and receivable from clients.
Though making an invoice is the simplest task of all accounting activities, people tend to make common mistakes while preparing them. Some of them are
- Wrong information in the invoice
- Payment due date not mentioned
- Payment terms and conditions not mentioned
- Details of product sold not mentioned
- Typing mistakes
To avoid such mistakes, the best way would be to use invoicing software that handles invoicing. Many businesses still use Microsoft office, such as Word, Excel, Google Docs, to make invoices, but these are manually created and prone to error.
Cloud-based Invoicing Software
Several subscription-based invoicing systems cater to small and medium-sized businesses such as start-ups, day-care facilities, gyms, and wine clubs. These invoicing systems are cloud-based on offer native mobile applications for iOS and Android devices.
The software’s key features include automating and customizing invoices, creating and managing subscriptions, and tracking receipts and payments. The invoicing solution allows users to customize reports for tax summary and other metric analyses. The invoicing software will enable managers to automate notifications, billings, invoices, and payments. Predefined templates are also used to send notifications via email.
Free Cloud-based Invoice Software
Many invoicing software has a free version, which means one can invoice and automate at no cost. The free invoicing system is essential and allows invoicing, with little integration and other features like paid ones.
But one has to pay a fee for online payments. Usually, there is a per-pay transaction fee, which varies depending on the payment service providers use or the payment gateway the invoice software supports.
