Invoicing Software for Freelancers and Small Businesses

Launching your own business is a process you shouldn’t underestimate. The to-do list might seem endless and it’s understandable that invoicing software might fall somewhere near the end, if it makes the cut at all.

But invoicing is a crucial part of the documentation process when it comes to running a business. Invoices are not only excellent for tracking the cash flow of your business, but they’re also important for monitoring your income, expenses, sales and debts.

By issuing invoices, you’re providing customers with a clear record of the sale. You’re also adding a document that allows tracking and proof of sales transactions, which can be useful in the event that you need to pursue missing payments or provide records.

Whether you’re a freelancer, sole proprietor, or a registered company, invoices can seem like an added hassle that eats up your time. But that doesn’t need to be the case. The right invoicing software makes this process simple and integrates with other tools, making it easier to run your business from anywhere.

Do I really need to use invoicing software as a small business?

While they’re a legal requirement for some businesses, invoices are only one part of the sales process. Invoices are closely tied to accounting, which includes customer payments, business expenses, credit notes, and more. As you can imagine, this can quickly add up to an impressive amount of paperwork.

However if you’re reading this, you’ve probably already come to this realization and want a better option for managing invoices for your business. You’ve also probably noticed that there are a lot of options out there, with a range of features and pricing.

The right invoicing software not only makes it simple and fast to create and share legally compliant invoices with your customers, but it also helps you get paid faster, makes it easy to keep track of your cash flow, and automates as much as possible to help you save time. It also often operates in the cloud, meaning you have access to this information, even while out and about.

Choosing an invoicing software designed for small businesses

While some invoicing software might claim to be one-size-fits-all, as a small business or freelancer it’s important to look into not only the features available, but also the experience for you as a user.

For example, highly complex accounting features might not be necessary when you’re starting out and could add unnecessary complications to the software. The price is likely also a major factor to consider when choosing the right invoicing software.

If you already know what your business needs, it can be incredibly helpful to make a list and start from there. Most invoicing software providers offer free trial periods, so you can take some time to explore different options and determine the best fit.

What about free invoicing software?

Cost is always an important aspect to consider when looking into the right tools for your business. While free is arguably more appealing than a paid option, there are often some clear downsides to choosing a free software over a paid alternative.

Free invoicing software typically has limited options and is rarely updated based on any changes to local regulations. It is also usually lacking some helpful features, such as customer support.

But if you’re a freelancer who only sends the occasional invoice, free invoicing software might be the right way to go. However if your business is a bit more established and you are also dealing with the accounting side of things, or if you’re looking for a bit of a professional edge, you’ll generally want to consider a paid option.

Why not use Word or Excel as invoicing software?

Often the automatic go-to option, Word and Excel are popular for businesses starting to create invoices. However, even these two seemingly reliable classics have their drawbacks when it comes to invoicing for your business.

A main concern about using an invoice template from Word or Excel is that neither application was designed specifically for invoicing. The templates are extremely basic, with no updates due to legal regulations or otherwise. You’ll also find that you might need to manually calculate tax and prices, which can lead to mistakes.

Because it was designed as offline software, invoices created in Word and Excel are not available in the cloud. They are typically tied to a particular device, meaning that computer crashes, viruses, and coffee spills are all risks to your records.

If you’re working with Word or Excel to create invoices, it’s recommended that you frequently back up your documents by saving them to a cloud-based service, such as Google Drive or Dropbox.

SumUp Invoices: Online invoicing software

SumUp Invoices is invoicing software designed with freelancers and small businesses in mind. It was built to be a fast and intuitive way to create and send professional invoices to your customers.

All of the tools you need to accept and manage payments are in one place. Customers can pay your invoices instantly online via an automatically included payment link or even with a QR code. If an invoice needs to be cancelled for any reason, you can also issue credit notes in SumUp Invoices.

Your data is automatically saved in the cloud so you can access it from any device, no matter where you are.