How to choose the right type of invoice for your business

setting showing the type of invoice

If you have chosen to see goodbye to the old ways of doing business, then choosing the right type of invoice should be your number one priority. 

Research shows that paper invoicing takes 15 steps on average to complete a manual transaction. You must have noticed how often you have called a customer who purchased your service hoping they will pay you immediately.

Or is it the many times you made countless errors while writing the cost of goods and description of services? 

Submerged in the whole day to day office chaos, many a time you are hardly able to remember where you kept a copy of the invoice you gave to your client a few days ago. 

The best way to solve these problems is through using invoice software. It’s a lifesaver. 

You can use bill payment software to automate the entire invoicing process. Aside from sending invoices, most software will help you keep your book, take your stocks and provide you with analytics. 

In this article, we will show you 5 of the best invoicing solution out there and how to select the best invoicing software for your business.  

Quality of a good invoicing software 

One of the best qualities of a good invoicing software aside from collecting payments is the ability to track payments. With this, you will know when to speak to your customers and when you shouldn’t. 

Some invoicing software, take it a step further by sending reminders to customers with a pending invoice. 

Different invoice software comes with different features. While some are general in functionalities, others are tailored to specific industries.

Niche notwithstanding, most invoice software has the following functionalities in common:

Why should you use invoice software?

1. Use invoices to track your sales record. Enough of book and pen all over the place. An invoice software provides documentation of your business’s payment history while monitoring all the revenue coming into your business. 

2. Easily keep track of your tax. The government is the least you want to get into trouble with. Keeping track of your invoice ensure you don’t pay more than you are supposed to. 

An invoice software helps you confirm your inflow and outflow so you can easily file your tax as at when due.

3. Bill payment software brings business intelligence to a whole level. It helps you predict your month after month revenue based on previous payment history.

Among other information, you will be able to tell the average time it takes your customers to pay you. Knowing this will help you manage loans and expenses.  

4. It removes human error: An invoice software ensures you’re able to send invoices without worries. It removes the risk associated with paper invoicing. Making it easier for you to prepare and send an invoice to your customer within 3min. 

In addition, invoice software is always available whenever you need it. No more walking around with pen and paper. Most invoicing software can be accessed through the cloud. Meaning, you can send an invoice via any device with an internet connection & has a browser.

How to choose the right invoicing software for your business

1. What does your business need?

Here’s something to do before you move further down this article. Take a sheet of paper or your notepad, list out all your business needs and pair them with your invoicing needs. 

Does your business require a standalone invoicing software or do you need CRM, sales management, point of service, CRM, budgeting, automation and more?

For a small business that want to track bill payment, send payment reminders or care about minimalistic analytics, a standalone invoice software solution will work best for you. 

2. What is your budget?

Will this invoice software put a hole in my pocket? You do have to find out. 

If you are a small business owner with a few client bases, using expensive bill payment software can be very detrimental to your business growth. You can opt-in for a free invoice too or sign-up for a trial subscription. 

For example, Biz301 invoices allow you use their platform for free without paying a dime whatsoever. All you have to do is signup and start sending invoices within 5min. 

Meanwhile, there is a robust business management tool like HubSpot that offer a full range of features. These robust software providers offer a trial period for first-time users or limited features for a lifetime. 

The package you chose depends on your business needs. 

3. What are your software integration requirement?

Depending on your type of business, it might require you to integrate your invoice software with other services like customer relationship management system (CRM), email service provider, analytics and more. 

It’s necessary before you subscribe to an invoicing service, that you cross-check your current tools to see how easy it is to integrate the invoicing system with it. 

You don’t want to go through the stress of switching your invoice software because you didn’t plan everything to the end. 

4. Level of support

Irrespective of how proficient you are in accounting or how knowledgeable you are in using specific software, you might still have questions about the product. 

A good software will provide you with avenues to get real-time support. 

It’s frustrating not getting help when you need one urgently.

This support might be via call, in-app chat and support ticket. Biz301 invoices provide in-app support documents, several how-to guides and are always available to chat with you real in real-time. 

5. Simple interface and intuitive workflow

A good invoicing software shouldn’t require a textbook or user documentation to use it. The interface should be so easy that even a 9-year-old is able to create and send invoices. 

Not just using it, but doing what has to be done within a few steps. 

When you open the app, immediately you should know what to do because the software layout is clear, intuitive, clean and easy to navigate. 

The 5 best invoice software solutions for small businesses

1. Zoho invoice

Zoho Invoice is a feature-rich invoicing software designed for freelancers and small business owners. Whether you’re invoicing online, recording offline payments or managing your business.

zoho invoice

Features 

• Customize your invoice templates

• Invoice in multiple currencies

• Communicate in your customer’s language (supports 10+ languages)

• Schedule invoices

• Schedule recurring invoices

• Enable you to prevent digital forgery or tempering with the sign your invoice feature. 

Pros

• Zoho invoice makes it super easy to track time and hours against specific clients and specific tasks.

• Zoho Invoice offers a robust reporting module for the price point. Canned reports can be customized easily.

• Zoho Invoice makes it easy to create and send invoices. Invoices are easy to clone, which makes creating regular, repeatable invoices a snap.

Cons

• Zoho Invoice does not provide all of its functionalities on the mobile version of its platform.

• Zoho Invoice is expensive for some small business owners especially if they don’t plan on using it often.

• Zoho Invoice can be complicated if you want to create a more advanced custom invoice or custom recurring invoice.

• It is hard to properly fix up a follow-up invoicing email sequence

Price: Come with a free plan with a monthly plan starting at $9 per month. 

2. Freshbooks

FreshBooks is one of the best cloud accounting apps out there. It was designed to help companies handle their finances in a secure and easy manner. FreshBooks offers a simple yet efficient way to manage expenses, invoices, reports, and time tracking. The product was designed to help you save the time spent on difficult number crunching, and to automate and streamline the accounting process.

Features 

• Send unlimited invoices to up to 5 clients

• Track unlimited expenses

• Send unlimited estimates

• Get paid with credit cards and bank transfers

• Track sales tax & see reports

• Access anywhere on iOS and Android

• Health report

• Recurring billing and client retainers. 

Pros

• Good customer service. Easily pick up and answer within minutes. 

• Easily connect with CRM

• It has a pretty robust auto email section. New invoice emails, payment reminders, and notifications of late fees are all part of this feature. Plus, if you learn the shortcodes, you can customize these emails.

• it’s great for creating, sending and/or auto charging for invoices you set up in advance.

• Freshbooks operates safely and robustly with large amounts of information.

Cons

• Difficult to carry over past due balance to a new invoice. 

• If you do not use all of the Freshbook features, it is a bit expensive for what you get unless you only have some high ticket clients. 

• Mobile app is good but does not work well for some features

• Do not allow fixed discounts, only percentage discounts.

Price:  

All plans come with a free trial version. The basic plan starts from $7.50. 

3. Invoice dot ng

Invoice ng is a Nigerian based invoicing software company helping freelancers, start-ups and small businesses send invoices fast. 

invoice dot ng type of invoice

Features 

• On-board multiple businesses 

• Add unlimited clients 

• Accept online payment 

• Easily integrates apps

• API access. 

• Expense management 

• Recurring invoices 

• Multiple users 

• Send quotes and estimates. 

Pros

• Easily upgrade, downgrade or cancel your account when you link 

• Special discount for monthly & yearly payment 

• Offer 5 invoices monthly on the free plan. 

• Support all major card payment 

Cons

• Customer support is via mail only

• Limited free plan

Price: 

 Offer a free plan. Paid plan starts at NGN1500 per month

4. QuickBooks

QuickBooks shine bright in the area of automated reporting and invoicing. You can customize report templates and schedule when generated reports will be sent to stakeholders. You can automate your invoicing process by setting up recurring invoices 

QuickBooks type of invoice

Features 

• Tax estimating 

• Sales tax management 

• Mileage tracking 

• Basic bookkeeping 

• Customizable invoicing 

• Multi-currency

• Manage employees

• Insights & reports 

• Budget management 

Pros

• Tracking tools for sent invoices 

• Pro financial analytics 

• Quick dashboard insights

• Easy to link to bank accounts and credit cards 

• Intuitive interface for most things 

• Reports can be customized, filtered, saved and exported 

Cons

• No templates for estimates or quotes

• Customer support is good but can be better 

Price:  

The plan starts at $8 with a 30days free trial. 

5. Kippa Africa

Kippa is an app-based accounting software for small businesses in Nigeria. With kippa, businesses can record your transactions, send receipts and invoices, track customers who owe you money and send debt bills via SMS & WhatsApp. 

Features 

• Inventory management 

• Send invoices to customers 

• Easily record transactions 

• Reminders 

• On-board multiple businesses. 

Pros

• Records are simple to enter and use

• Easily 

Cons

• App features not well linked together 

• Not very strong analytics 

• Design isn’t very intuitive 

Price:  

Free to use

Conclusion

The article above has shown you the best invoicing software tools for small businesses and the criteria for evaluating your options. If you are budget conscious, you can go for free or affordable software. 

Use the knowledge you have gained from this article to list your requirements and select the invoicing tool that best meets those requirements.

To learn more about how the Biz301 an all-in-one platform can help your business, click on this link to get started for free.

1 Comment to “ How to choose the right type of invoice for your business”

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