An article on Business Insider stated that 40 percent of Americans will be freelancers running their own small business by the time 2020 arrives. If this proves to be true, that is a major shift in how Americans work and make their money.
Sadly, a lot of new – and even experienced freelancers – fail to operate successful and sustainable small businesses. One of the main reasons most businesses disappear after the first year of operation is because they fail to achieve a stable revenue stream. Many times they get caught up in the work they are performing and they forget to manage the financial side of the business.
But this doesn’t have to be the case! Small businesses, and in particular freelancers, can empower themselves by learning more about accounting and finance. They can also put tools in place to help offload some of the work associated with operations.
With the popularity and ease of access to so many SaaS (software as a service) tools, strong financial health is in the hands of freelancers and small businesses. Let’s review some popular options for managing financials through small business invoicing software.
The Benefits of Using Small Business Invoicing Software
- The right invoicing software can automated receivables and payables, which reduces manual work and paper, which can lower operation costs by 29 percent. The cost of postage, printing paper, equipment, and ink will all be eliminated.
- Even better yet, the experience of lost checks and bounced checks can be replaced with software that makes it easy for you to receive online payments.
- Cost is not the only benefit. Accuracy in invoicing can improve existing relationships with customers, while also reducing data entry errors caused by human intervention.
- All information is saved in the cloud, which means customers can be invoiced from anywhere and at any time. This makes online invoicing software a must-have tool.
- And at the end of the fiscal year, the right invoicing software can say goodbye to spreadsheets and say hello to ready to use, visual reports that can be quickly exported for accountants and CPAs for processing income taxes.
Popular Software Options
- Freshbooks Accounting Software – Freshbooks is one of the most popular invoicing software packages for small business. If you are interested in going paperless, this software is a great tool. It accept payments, send bills to vendors, and interact with external clients all online. It makes a great QuickBooks alternative.
- QuickBooks – Do you have an accountant? QuickBooks allows users to share books with people outside our organization to collaborate. Employees can take photos on their smartphone of receipts and send it through the app.
- Hiveage – If you are a visual entrepreneur Hiveage has visual reports with graphs that reflect financials on receivables and payables. The software can support the mileage your sales team or employees that work in the field need to track.
- Zoho – Zoho is not only an invoicing software, you can use it as a CRM (Customer Relationship Management) software to keep track of your members, customers or clients. It can help you to track your projects if you have agile teams.
- Invoicera – One of the benefits of using Invoicera is you can integrate other CRM or ERP programs and use it is a invoicing platform. At the same time, you can restrict access to certain areas of the system depending on the seniority of your employees.
- bill.com – The sound of accepting ACH, interac, ePayment, credit cards or PayPal is music to some small business owner’s ears. It is protected with fraud prevention, encryption and data security.
- Wave – Wave is an app people use on their smartphones and handheld tablets. It can send customers email notifications that payments are due. It is a free service with additional fees for features such as monthly payroll, credit card processing, and bank payment processing.
- Xero – Xero was featured in FORBES and Accounting Today. It has multiple currencies, you can add over 600 third-party apps and attach documents for invoicing purposes.
- BQE – This software tracks the progress of project management finances or write checks to suppliers or reconcile bank accounts using BQE.
- Billy – Billy will help you view a snapshot of your financial metrics and it is compliant with accounting regulations in your area. Freelancers had a say in the features of this accounting software program.
- TIMESOLV – Customer support with TIMESOLV is free and it is compatible with a Windows or Mac computer. It has a 30-day free trial you can test before making a final decision.
- Tipalti – This software is KPMG-certified with FATCA tax compliance to make sure you are compliant. It has up to 120 currencies with 190 countries you can input if you have international clients.
- OfficeTools – You can use it to send emails, time tracking for billing and the status of purchases can easily be inputted. Managers can keep track and assign projects to multiple team members
- Scoro – In a single Scoro dashboard you can view monthly revenue, accounts overdue, closed accounts per week and your budget.
- Invoice2Go – Track expenses, invoice customers, and accept online payments all with one simple app. The small business invoicing software has been mentioned on TechCrunch, Forbes and The Wall Street Journal.
- Workflow MAX – This industry-specific software can be used by engineers, marketing agencies, consultants, architects, and surveyors.
- timesheets.com – Ask your supervisor to use Timesheets.com to approve or decline hours and expenses submitted by employees. You can try it out for 30 days for your entire team to use.
- Housecal Pro – Small businesses can say goodbye to manual paperwork. Your team can send invoices real time to customers once a job such as a plumbing repair is completed.
- BIGTIME – If you currently have QuickBooks it can be integrated into BIGTIME to manage billing and timesheets. There is no limit on the number of clients you can bill using this accounting software.
Which Invoicing Software is Right for You and Your Business?
All of these small business invoicing software tools are unique in their own way. Before you decide what invoicing software to invest in, request a free trial to ensure it fits with your business.
Everyone processes data and information differently, so take the time to validate a possible invoicing software package that fits you and your type of business.