Most invoicing is still done by hand, but invoicing software has been steadily gaining in popularity over the years. The question of whether to use invoice templates or invoicing software is one that many business owners face at some point, so we’re here to help you make an informed decision!
What is an invoice template?
An invoice template is a pre-made invoicing document that you can use to quickly and easily invoice your clients. You just fill in the blanks with the relevant information, print it out on high quality paper, sign it if necessary, and send or email it to your client. Invoice templates are available in various file formats, such as Word, Excel and PDF. A good resource for free invoice templates is Hiveage, who are a leading invoicing software platform.
What is invoicing software?
Invoicing tools come in different forms, and the most popular these days are the online invoicing software. With invoicing software you can create invoices, send invoices to your clients, track invoicing and billing history, set up recurring invoices and integrate with accounting software. The advanced features of invoice software make it a more powerful option than using an invoice template.
Why use invoice software instead of invoice templates?
There are several advantages of using invoicing software:
More Customizability and Consistent Brand Identity
With software, invoices are easier to customize, invoicing is more efficient and invoices look great. The software usually has templates which can be altered with your company’s logo or branding elements, so you don’t have to create your own template. This way invoices match the style of your company’s website and marketing materials.
Accessible from anywhere
You can access invoicing software from anywhere, making it a good choice for entrepreneurs or small business owners who work remote. You don’t need to carry around paper invoices and data with your laptop when you’re out of the office.
When you use invoicing software, you can save time on creating, tracking and managing individual invoices. It won’t take you hours to generate invoices for clients as this can be done with a few clicks.
If your invoicing software lets you attach files, it will also save time on emailing invoices back and forth to get approval or simply sending the invoice straightaway.
With your business data stored on the cloud, you don’t have to worry about losing it because it is securely backed up on several servers. If you manage your own data, you have to worry about data security and safety, which might not be your area of expertise.
Makes payments easier
Most online invoicing software supports online payments through popular gateways such as PayPal, Stripe and Square. This means that you can get paid quicker, as your customers will experience a more streamlined process.
Automatic payment reminders and notifications
Another useful feature in invoicing software is the possibility to schedule reminders that will be automatically sent out at predefined intervals until your clients have paid their invoices. This ensures you receive payment without needing to harass them personally.
Invoicing software makes it simpler and easier to have an overview of all the invoices that you’ve previously sent, which are still open or overdue. They also make it easier to create reports, which will help you understand your current financial situation better. It also tracks where the majority of your income comes from, which clients pay consistently on time and which products or services sell best. This is much harder to achieve with manual invoices created using templates.
You may have been using a free invoice template in the past or are still doing so now but invoicing software is worth considering for all these advantages.