Which Billing Software was Used The Most in 2022?
Back in the day, business owners had to manually write up invoices, send them out and wait days to get paid. This isn’t the case in 2023. Thanks to digital billing software you can now create invoices quickly and receive payments on time.
If you’ve been thinking about adding modern billing software to your business, keep reading to discover the best options available and some of the main features to look for.
What are the Benefits of Billing Software?
Manually creating invoices isn’t a simple task. You have to spend long hours entering your customers’ information in every invoice and if online payments are involved, the process can get twice as difficult. Luckily for you, invoicing software reduces your workload by half and gives you the chance to focus on other crucial areas of the business.
Getting paid on time is the other perk of using modern billing software. Manual invoicing takes on average 10- 15 days for the customer to receive the invoice and pay. But if you take the digital route, you’ll be able to create and send an invoice in just a few minutes.
Accuracy is the other reason why you should switch to modern invoicing software. When creating invoices manually, miscalculations can happen where your customers can overpay or underpay. These kinds of mistakes can be easily avoided by using invoicing software.
What Makes a Billing Software Good?
Good billing software is simple yet functional. It should have features that both an E-commerce business and a brick-and-mortar store can use, but the features should not be too overwhelming. For example, you shouldn’t be worried about calculating tax when using invoicing software. A good invoicing software should automatically calculate the tax for every transaction and correctly enter your customer’s information.
Aside from being simple and efficient, good invoicing software also provides transparency through reporting. The system should draw monthly revenue and tax reports along with summaries for new subscriptions and upcoming rebills. These reports will help you keep your financials in order especially if you run an E-commerce business.
Last but not least, good invoicing software allows for customization. Such software should make processing payments easier by allowing you to reflect your branding in your invoices and also split billing amounts into multiple payments.
Top 3 Most Used Billing Software in 2022
Square offered some of the best invoicing services in 2022. We recommend signing up for the monthly subscription which offers customizable and unlimited invoices. However, if you want to keep things simple, Square’s free plan will do. Aside from invoicing, Square can also be used for payment processing. You can accept in-person and online payments. ACH payment processing is also possible with this powerful software.
Freshbooks ranks second in the billing software industry. Although it offers payment processing and unlimited customizable invoices, its user-friendliness is what puts it on the map. With Freshbooks, everything is simple and functional. Neither you nor your staff will experience any problems creating invoices here.
Xero is another popular invoicing software. With Xero, you can create invoices, process payments, maintain your inventory, and use their accounting system to keep your financials in order. Xero also offers many integrations that make it a must-choose for any E-commerce business owner.
How to Choose the Right Billing Software for Your Business
Cost is the first thing you should consider when choosing invoicing software. If you’ve just started out, go for options that offer free invoicing or affordable monthly subscription plans. And as your business gradually grows, upgrade to better plans that you can afford.
Compatibility is also crucial when choosing invoicing software. For instance, if you’re running an E-commerce business, explore invoicing solutions that specifically manage online transactions. And if your business is a bit mobile, choose invoicing software that’s compatible with mobile devices.
Compliance and security are the other major factors you should consider when choosing invoicing software. Look for companies that are fully compliant with GDPR and those with a PCI DSS certificate. Also, look for fraud monitoring features such as employee account tracking and location tracking.
Finding and installing good billing software isn’t as complicated as it sounds. You may experience a little hitch if you opt for software that’s filled with features. Nevertheless, getting started with digital invoicing will be rewarding in the long run.
Remember that businesses have different needs, so don’t be too hard on yourself when looking for invoicing software. For now, just make sure you’re satisfied with the cost and the features.