Invoices are essential to your business and your cash flow, but keeping track of payments can send you running in circles. That’s where the right software enters the picture.
What is an invoice? Put simply it is a bill in the form of a list of goods or services rendered. Invoicing software automates most of the process and frees up the time you would otherwise spend creating and monitoring paperwork. If possible, it’s better to start using software from day one, to make things simpler come tax time by giving your accountant direct access to your invoices and receipts. You also have on-demand access to your business data, so the next time you’re lying awake wondering if you’ve sent an invoice, you can just pick up your phone and double-check — and then sleep easy.
Here are some things to consider when choosing invoicing software:
Not all invoicing software is the same.
What do you need the software to do? Are you providing a service that you want to create estimates for? Would it be helpful to be able to track the time spent on a project? Do you have multiple invoices going out every day or do you need more of a monthly automated bookkeeping service?
The fees can add up.
Think about how much you want to pay for the software. Some invoicing software is subscription-based with either free trials or basic functions provided on a complimentary basis. Look out for features that you might want included such as recurring payments or auto-reminders for late payments.
After you’ve considered the set-up cost, find out about monthly fees for facilities such as cloud data storage, and make sure you’re happy with how and where your business data will be backed up. How easy is it for you to access important information when you need it? Does it sync with your existing point-of-sale system and mobile phone?
Square Invoices makes it easy to send invoices directly from your mobile phone or app and receive the funds in your bank account in one to two days. Invoices are free to send, and you just pay 2.75% of the amount paid online by the customer who receives the invoice. Other features enable you to track paid or unpaid invoices in your Dashboard and add products from your Square library to your invoices directly. Customers can pay online with a debit or credit card — and you can mark invoices paid once you’ve received payment. You can even add a custom field for tips on your invoices to generate extra revenue.
Invoicing software can also simplify your accounting.
Automating your accounting system is also easy with integrated apps that work alongside your Square point-of-sale system. InvoiceASAP lets you pay and generate invoices via your iPad or iPhone. Or you can select an app that generates invoices as part of an overall accounting system: Intuit QuickBooks, Xero, and Kashoo are ideal for small businesses. Both can be fully integrated with your Square Dashboard to keep track of payments and make it easy to see who owes you what and when it’s due. Kashoo Cloud Accounting can also be used to sync with Square data in real time.
Most invoicing software companies offer free trials so you can find out which best suits your needs. For more information about integrated apps, visit Square App Marketplace.