What is invoice software?
The best invoice software, or invoice management software, is software that makes invoicing easier and more streamlined. The intent of all invoice management software is to take the administrative burden out of invoicing, making it quicker and less onerous. That is not to say though that all invoice software actually delivers on what it promises. Software should automatically generate a bill for any services or products a company provides, but some pieces of software may have a few more steps than that. There are many different invoice software packages available. Some will be more suited to larger firms while small business invoice software packages also exist.
Second to sending out invoices, invoice software can also chase any unpaid invoices as well as provide companies with data on invoices themselves, as well as customers. That data can help a company make future business decisions which are better informed and therefore more effective.
How does invoice software work?
Invoice software works by automating the repetitive aspects of invoicing. A good piece of invoice software should generate a bill automatically with the relevant list of services or products with their costs, and send it straight to the customer. Invoices are generated thanks to an invoice template being established in the first instance, and then amended by the software as necessary. Those amendments are made with the correct information compiled from a company’s systems from other workflows. Invoice software therefore should integrate with a company’s other applications so that it can derive the correct information regarding services rendered. All this is done electronically with minimal, if any, interaction between sales and accounts payable teams.
Advantages of invoice software
Even free invoice software with limited capabilities may help a company make the most of the advantages that invoicing with software can provide. Whatever invoice software package you choose, the best invoice software should provide the following advantages as standard:
Without doubt, intuitive and well integrated software helps a firm save time. When the process of invoicing is not digitized, or even when it relies heavily on an excel spreadsheet, the process still requires several steps. With more steps, the more room there is for error. Automating the process can take out some stages - like printing an invoice for example or manually entering invoice costs - which massively minimizes mistakes.
In saving time, not only are errors eradicated, it also makes invoicing far more cost effective. You need less personnel to run the system which generates invoices - plus it reduces late payments and missed invoices as well as costs related to printing and postage. Your cash flow is improved which also helps a company improve its current account balance.
The problem with errors on an invoice are not just that you get underpaid or a customer calling up to say you have overcharged. It is also that you have to spend time unwinding that error - which sometimes can be magnified over time. Payments are delayed, which has a negative effect on cash flow and can even affect a company's ability to pay its own invoices.
Better insights and analysis
Finally, as all information is stored online, it is possible to analyze data far more easily. Better insights can be gleaned from that data, plus that data can be relied on to be accurate too. Thus, the insights taken from the data are superior as well. Companies can become a more efficient place overall - simply because invoicing and invoice management has been enhanced.
Contractbook and invoice software
At Contractbook, we’re huge fans of automation. Automation can help eradicate any tasks that are both repetitive and time consuming - yet do not provide much value to a firm. Invoice software is a means of automating a huge workload within the accounts department. Using our software can help trigger invoices to be automatically created when services or products have been provided. Workloads are streamlined, yet revenues can be much improved.