Are you thinking about purchasing an invoicing application?
If the answer is yes, you’re likely overwhelmed by the multitude of different providers to choose from. You may also be confused about what features invoicing tools offer over similar solutions, like accounting and document management apps.
Invoicing apps have the potential to transform day-to-day invoicing processes. They can help organizations save time and money while boosting key metrics like invoice approvals and sales.
However, it’s important to pick a solution that is a good fit for your business. And there are several factors to consider, from the time zone of the support team to the complexity of the user interface (and much more).
This article tells you everything you need to know to understand the market and pick a platform that is an ideal fit for your business.
What Is Invoicing Software?
Businesses use invoicing software to create, send, track, and store invoices. An invoice app is a type of highly focused document management solution designed to streamline the process of collecting payments.
Most invoicing applications have the following core features:
- Automated invoice creation: Automation tools can save significant amounts of time that might otherwise be spent manually creating, renewing, and reissuing invoices. Many parts of the approval process can also typically be automated.
- Customers/vendor database: Invoicing platforms provide a database for storing the details of customers and vendors. If you have a CRM (customer relationship management) platform, your invoicing software will likely integrate with this.
- Online document storage: Most invoice software providers also include cloud storage on their plans. This makes it easy to store and access invoices quickly.
- Payment processing: Invoice applications provide payment buttons and processing infrastructure to streamline the payment process. These features can often boost conversions substantially. Some platforms charge users a percentage of the amount for each invoice, so this is something to be aware of when evaluating pricing.
- Electronic signatures: Electronic signatures make it easier for both senders and recipients to approve invoices. They have increasingly become the norm in the business space, replacing cumbersome pen-and-ink signatures.
- Employee expenses: Invoice applications may also have tools for managing employee expenses, often with an employee app.
Do You Need Invoicing Software?
Whether or not you need dedicated invoicing software depends on the complexity of your invoicing processes.
If you deal with large numbers of invoices on a daily basis and it is important that you are able to automate parts of your invoice creation and delivery workflow, then invoicing software is worth considering.
If this isn’t the case, invoicing tools provided as part of a more extensive accounting or document management solution may be sufficient for your business.
Let’s look at the example of two market leaders in the accounting and document management spaces. Quickbooks, one of the web’s most popular accounting apps, offers extensive invoicing functionality. PandaDoc, the market leader in the document generation sector, also has numerous invoice-related features, which are provided in conjunction with document automation tools.
What’s the Difference Between Accounting and Invoicing Software?
Your accounting app likely already provides you with various invoicing tools. For example, popular market leaders like Sage, Quickbooks, and Xero (to name a few examples) all have invoice creation and delivery features.
So what separates standard accounting platforms from highly specific invoicing tools?
In a nutshell, it comes down to advanced features. Invoice software provides an additional layer of tools that enable organizations to streamline their invoicing processes.
These include automation settings, in-depth analytics, and multiple payment options. You won’t typically find these features in applications that aren’t dedicated exclusively to handling invoices.
What Areas Should You Evaluate When Picking Invoice Software?
When choosing between different options, pay attention to the following areas:
- Document creation: How easy to use and feature-rich is the document editor? Can you easily pre-fill invoices with customer details to save time? Do you have access to pre-written templates like NDA examples and reusable content?
- Analytics and tracking: One of the big benefits of invoice software is that it gives you a full overview of all accounts payable (AP) and accounts receivable (AR) activity, with the option to drill down to a granular level when needed. Clarify which metrics are important to your business and ensure these are tracked in the analytics dashboard.
- Integrations: Invoice applications automate the transfer of data between platforms, saving significant amounts of time (sometimes hundreds of hours) that would be spent on manual data entry. But it’s essential to ensure that your platform of choice integrates with your existing tech stack. This is of particular importance when it comes to your accounting app.
- Customer support: Customer support should be available in your time zone via your preferred method of communication (live chat, phone, email, etc.). If you require an account or onboarding manager, this is also something to consider.
Best Invoicing Software: Top 5 Picks
Here are five of our top picks to get you started on your search for an invoice application. Remember to take advantage of free trials and demos and don’t make a final decision until you have tried out several providers.
- PandaDoc: PandaDoc is a document management solution that provides extensive invoicing functionality. Users have access to automation tools, auto-generating documents, advanced analytics, and a sizable library of integrations. If you think your company will benefit from a comprehensive document solution then PandaDoc is worth considering. A “forever free” trial without any sending limits is available.
- SAP Concur: If you’re responsible for a large workforce, SAP Concur may be a fit for you. It’s a powerful platform with an array of employee tracking tools, like an app for reporting expenses and managing travel. Pricing isn’t published on the website, so you’ll need to get in touch with the sales team to discuss options.
- Bill: Bill caters mostly to a user base of small and medium-sized businesses. It integrates with all major accounting applications and combines an extensive feature set, with numerous automation tools and payment options, with an intuitive and easy-to-use dashboard.
- Airbase: Airbase is geared more towards the medium and large-sized portion of the business market. It provides an array of advanced tools, like software-enabled corporate cards and employee reimbursements, alongside a comprehensive set of core features. The package options are flexible, but you’ll need to contact the sales team to discuss pricing.
- Paymode-X (Bottomline): Paymode-X is a comprehensive solution with a focus on security, offering cutting-edge payment solutions that limit the potential for fraud. As such, larger companies may find it appealing. It also offers an attractive rebate package for its virtual card users.
