Looking for premium invoicing software?
Invoicing software is the starting point for any good accounting.
So if you’ve ever had an “aha moment” where you realized it was time to stop wasting time using spreadsheets to track things like payments and expenses, we have the tips to make this time and money back.
Good news: Today’s invoicing software market is packed with big-name vendors offering dozens of different solutions. Premium invoicing software from leading platforms provide comprehensive features designed to streamline your financial operations.
But the problem is they all seem so similar. Most software can generate invoices, track sales, and accept payments.
If you’re like most small business owners, there’s a lot more to your monthly invoicing and billing operation.
You need more than basic invoicing software to take on competitors and position yourself for growth.
Core features every business needs
Before we dig into the advanced features of modern invoicing software, let’s start with the basics.
Every modern invoicing software platform starts with a few non-negotiable features.
These are the key components that every business should be looking for, regardless of their specific industry or use case.
Automated invoice generation
It’s where any modern software really stands out.
It’s time to say goodbye to hours spent creating invoices by hand (depending on the volume of your invoices, you can spend hours writing your invoices every week).
In today’s world, automated invoicing platforms allow you to set rules and automate all the aspects of invoices that tend to be identical, whether you are a medium or large business.
This can include everything from calculating taxes, to adding logos and branding, to formatting line items.
Automatic invoice generation can save companies up to 80% of their invoice processing time, which can have a huge impact on your bottom line.
Tracking payments and reminders
Late payments are the bane of every CFO’s existence.
Payments can kill cash flow, especially for fast-growing businesses. According to recent data, 61% of late invoice payments are caused by simple invoicing errors.
The best invoicing software platforms give you full visibility into the payment status of every invoice.
Automated payment reminders are another simple but often overlooked feature of modern invoicing software.
Automatically scheduled reminders save you the hassle of chasing late customers for payment.
Payment tracking and automatic reminders are what makes all the best modern platforms far superior to their simpler competitors.
Automation capabilities that save time
Here’s something that’s worth mentioning before we dive into the more advanced features:
Did you know that according to our data the invoicing software market is going to be worth $22.14 billion by 2034? And the primary driver behind this massive growth is… Automation.
Businesses are fed up with manual, error-prone processes that take so much of their time.
The biggest growth drivers are recurring billing and recurring platforms like monthly invoices or automated subscription platforms. If you have monthly clients, you’re already used to this process.
Automated recurring billing (often called subscription billing in this space) can save businesses over 15 hours per week on manual invoicing alone.
Multi-currency support
If you are planning to (or you are already) exporting your business, you need an invoicing software that can support multi-currency.
Modern software platforms automatically handle currency conversions, apply the correct taxes for each jurisdiction, and even adjust for exchange rate fluctuations.
Smart data extraction
This is where AI finally starts to shine. The OCR (“optical character recognition”) technology of some software allows automatic extraction of data and information from any supporting document in an automated way.
For example, by taking a photo of a receipt or uploading a PDF, your modern invoicing software can extract all the relevant information using AI. Pretty cool, right?
Integration options for your tech stack
Integration is key.
Invoicing software shouldn’t be a silo in your business. You need platforms and solutions that work together and enable your business rather than work against you.
Accounting software integration
This is probably the most obvious and important integration to have.
Accounting software (like Sage, Xero, or QuickBooks) are central to your back-office operations.
When you connect your invoicing software with your accounting software, any invoice created and sent automatically syncs with your accounting platform.
This means no double data entry and no headache when reconciling invoices and payments.
Payment gateway integration
This feature enables you to get paid faster and easier, and it all comes down to the convenience you provide your customers.
Offering multiple payment options via different payment gateways – credit/debit cards, PayPal, Stripe, bank transfers, crypto – are an absolute must in modern invoicing software.
Customers will pay you 60% faster if you accept multiple payment types (according to recent data).
CRM integration
Most companies out there nowadays use some type of CRM platform like HubSpot, Salesforce, or even Microsoft Dynamics 365.
Integrating your invoicing software with your CRM allows you to see your customer’s entire purchase history, including their payment history and outstanding balances.
This gives you a 360-degree view of each of your customers and makes it easier to identify your top customers, as well as uncover potential payment risks.
Security features you can’t ignore
We live in a world where cyber security threats are a real and persistent danger to our businesses.
When it comes to invoicing software, this is no different.
However, you need to be careful about who has access to your financial and customer data.
Data encryption
Look for invoicing software platforms that offer advanced data encryption. This is encryption designed to protect your data in transit and at rest. Data at rest means information sitting in your database. This data is considered encrypted when a piece of data that is stored is inaccessible and unusable without the correct encryption key.
User permissions
Another important element of user management is setting up user permissions. This gives you control over what users have access to in your invoicing software, and can range from “full access” to “view only” options.
Audit trails
Audit trails track any action that happens in your invoicing software. This includes creating, sending, and editing invoices, along with tracking who paid and recording the payment.
Automatic backups
Ideally, your invoicing software will have an automatic backup option, saving your data to multiple remote secure servers and locations. This helps you recover any financial information or data in case of a server failure, natural disaster, or a cyber attack.
Choosing the right platform
Now that we’ve covered some of the key features to look for in a modern invoicing software platform, how do you actually choose the right software for your business?
The short answer is that it depends. A lot depends on what type of business you run.
Here’s a few questions to ask yourself that will help you narrow down your options.
Ask yourself:
- Do you need to support multiple currencies?
- What accounting software do you use?
- How many team members will have access to the software?
- Do you send recurring or subscription invoices?
Answering a few simple questions will help you separate the “me-too” solutions from the real contenders.
Don’t be afraid to test out a few different platforms before making a final decision. Most vendors offer free trials and demos so you can get a sense of how well their software fits your specific workflow.
Wrapping up
Modern invoicing software is not just for big businesses. In fact, with the right solution, you can completely transform the way you do accounting and bookkeeping.
No matter if you’re a one-person shop or a global conglomerate, investing in modern invoicing software is a no-brainer.
The right platform will save you time, reduce errors, improve cash flow, and help you gain insights into your business’s financials like never before.
And with companies across the globe cutting their invoice processing costs by up to 70% through automation, the ROI of investing in invoicing software can’t be ignored.
The best piece of advice? Don’t overthink it, focus on the essential features you need today but also be open to what else your software can do to support your business’s growth.
