Online Invoicing Software or Invoice Templates: Which is Better for Small businesses?

Do you have trouble deciding whether to utilise online invoicing software or invoice templates? Yes, both have the same basic purpose in mind: to create bills fast and conveniently. They do, however, have a lot of differences. Both have their own set of features and cater to different billing needs. This blog will compare the two and assist you in selecting the best choice for managing your company’s money. Before we compare, it’s important to know what online invoice software and an invoicing template are. Let’s begin by defining both of them.

Online Invoicing Software

Invoicing software allows you to automate your business’s invoicing processes. You can use the application to create a list of services and items, along with their prices, and send an invoice to your clients or customers. Invoicing by hand is prone to mistakes. A small invoice inaccuracy might result in a significant loss. You can easily create and personalise invoices, manage and process payments online, and produce reports to help you track your finances and monitor bills with the finest invoicing software for small companies. To spark a client’s memory, you may even send a payment reminder.

What are the benefits of invoicing software?

  • Reduces missing payments by keeping track of invoices and payment status.
  • Enhances the image of your firm 
  • Simplifies accounting and financial operations
  • Defends sensitive data from getting attacked by cyber-attackers.

Invoice Templates

A pre-designed invoice layout is known as an invoice template. You can utilise invoice templates if you don’t want to build an invoice from scratch. An invoice has a lot of information on it that doesn’t change very often. Most of a vendor’s bills have the same business information, such as name, contact information, and payment instructions, such as acceptable payment gateways, payment currencies, and beneficiary bank account numbers. As a result, they provide all of the pertinent information. Invoicing templates help businesses avoid invoicing mistakes and save time by allowing them to skip repetitive tasks related to their finances. The invoice template comes in a predesigned format such as Microsoft Word, Excel, PDF, and Google Docs that ensures the invoice layout is operative and precise.

Benefits of invoice templates

  • Gives a lasting impression 
  • A professional record is more likely to be maintained, but a handwritten note is more likely to be thrown away or misinterpreted as garbage.
  • You’ll be able to see when clients read your invoice if you utilise our mobile app.
  • You can set up online payments and be paid quickly after sending your invoice when you use our mobile app.

Why choose online invoicing software over invoice template?

Wide Scope 

The process of invoicing doesn’t end with the creation of an invoice. Invoicing includes posting invoices, setting up automated payment reminders, following down late payments, and settling invoice disputes. And invoicing software makes accounting departments’ jobs easier by assisting them with all of them. A template, on the other hand, allows you to easily construct an invoice. You’ll also need a separate template for creating estimates, quotes, and receipts.

There are several payment options available

When you accept payments through several methods, your chances of getting paid quickly increase considerably. As a result, billing software allows you to take both online and offline payments. With online invoicing software, you can accept credit cards, debit cards, Stripe payments, and offline payments. This helps us to maintain a positive cash flow and adjust taxes appropriately. Furthermore, it securely maintains client credit card information so that the consumer does not have to go through the same process each time.

Automation

Small company owners don’t have the time or resources to manually enter all of the necessary invoice information. As a result, automation is the most effective option for such tiny businesses. Billing software is more useful for recurring invoices. You may plan future invoices and then completely forget about them. It will send bills to the correct consumer at the appropriate time.

Aside from that, it calculates the total amount instantly and simplifies the process of adding payment conditions and instructions. This allows you to save time and use it towards more vital business duties. You may even send your client an invoice through email. MS Excel templates, on the other hand, can assist you to calculate the amount, but they can’t recall your frequent clients’ email addresses, and they can’t schedule invoices.

Mobile access is available

Some of the online invoicing software allows you to produce bills for free by downloading the software through the mobile app. You can create invoices using your smartphone or any other mobile device, at any time, from anywhere.

Cloud Storage

All of your data is kept online on several servers using the online invoicing software. This eliminates the possibility of an invoice being misplaced. You may also lookup the status of any prior invoices you’ve created.

Key takeaway

Using free professional invoice templates may appear to be a good idea. It is, but only if you are in the early stages of your company. If you only need to bill a small number of customers or clients, invoice templates will suffice. However, as you get older, things get more serious. As your customer grows, so will the number of invoices you’ll need to send out each month. If you’re still utilising paper-based registers, invoice templates are a terrific way to go. However, if you truly want to be paid quickly, you’ll need to explore beyond templates. Additional capabilities provided by online invoicing software allow you to improve the efficiency of your economic transactions.

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