Choosing accounting and invoice software is a big decision for your business.
It’s also a good sign that you’re taking your bottom line seriously. About 18% of small businesses don’t use accounting software and only 21% have accounting and invoicing integrated.
If it’s up to you to find software to manage your company’s finances, you need to make sure you choose the right software package.
Are you ready to learn the top tips to choose the right invoicing software for your business?
Let’s get started.
1. Know Your Needs
The first thing that you need to know is what you’re looking for in a billing software.
Do you just need something simple to track your time and send out invoices? Do you need billing software that integrates with your accounting software or another system, such as a scheduling system?
There’s a lot to take into account. There are billing solutions that are hosted in the cloud and others are on desktop computers.
To evaluate your needs, think about how many people need access to billing information. Also, think about how the software will be used. Will you need to integrate it with other software solutions?
Depending on the size of your office, you may want to get others involved in the process, like those who will be using the software.
2. What’s Your Budget
You will need to have a budget for invoicing software. There are a couple of different payment models that can influence your purchasing decision.
Software that’s based in the cloud has a monthly fee. There’s usually a discount if you pay for a year in advance.
Billing software that you hosts yourself will require more money upfront, but you won’t have to pay again until it’s time to upgrade.
Don’t be afraid to spend money on a resource that you need. If you were to invest in a full suite of services that included accounting and billing.
These packages can help you save money in the long run because they can help you identify tax deductions.
3. Industry Specific Billing and Invoice Software
Your business is unique and the software package you choose should be unique to your business. A one-size-fits-all package may not work for you.
Different industries have different needs.
For example, chiropractor’s office would be better off using software that focuses on insurance claims that are coded properly. That’s important so they can get paid on time.
In that case, they can look at this company, which offers a software solution that can do all of that and automatically submit claims.
General contractors have completely different needs. They might want to consider something that focuses on job costing and bid management that integrates with accounting software.
4. Compare Features of Different Packages
You’ll have to carefully examine what each software package offers, and that’s usually listed in the features.
The first thing you should look for is what type of information will you be able to include on the invoices. Some basic software will require that the invoices have their logo, not yours on the invoices.
You would have to upgrade in order to have your logo on the invoices.
Would you be able to have your own invoice codes and have separate line items that include start and end dates?
You’ll want to inquire about notifications and whether or not they’re automatically sent to a client when an invoice becomes past due.
Do you need to access your billing and invoicing system on the go? If you do, then you may need something that’s cloud-based and has an app so you can view your system on a phone or tablet.
5. Check for Integrations
Your office might already use multiple systems. You have one for payroll, accounting, HR, billing and invoicing.
In an ideal situation, these systems can communicate with each other and have all of the information you need on one dashboard.
That will save you a lot of time jumping from one system to another to find information. Not only that, but integration with other systems will save time on data entry work and reduce errors.
6. Ask What Other Companies Use
Your colleagues and accountant may have ideas as to what billing software you can use in your business.
Ask around to see what others are using to get ideas. You can then investigate those solutions for yourself and see if they match your needs.
7. Ask the Right Questions
When evaluating billing and invoice software, you should have a list of questions that you and your team come up with to make sure you’re buying the right solution for your office.
These are a few questions to ask yourself. You can add your own to fit your situation.
- Is it easy to use?
- Are there hidden costs such as set up fees and monthly costs?
- What kind of security is included?
- Can the software be customized for the business?
- How is data backed up and restored?
- Will the software grow with our business?
- What kind of support is there? Are there additional costs for technical support?
These are just a sample of questions to ask when selecting software.
When you have your decision narrowed down to a few choices, take a demo to experience the software for yourself.
Choose the Right Billing and Invoicing Software
Statistics show that small businesses shut down because of cash flow issues. You don’t want yours to be one of them by not sending out invoices and tracking your finances.
Invoice software is designed to take the pressure of sending off invoices for you. Before you decide which software package is right for you, analyze your needs and
You may find that an industry-specific software is right for you. You might discover that an all in one package that integrates with your HR system works better for you.
For more great accounting and finance tips for your business, check out our finance blog today.