Billing and invoicing software is designed to help in the task of automating all invoice production, sending, delivery and receipt processes. Compare the best Billing and Invoicing software currently available using the table below.
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Simply Vyapar Apps Pvt Ltd
FreshBooks
Balance
OnPay Solutions
BQE Software
Chargebee
Yooz
OneBill
Synder
TimeSolv Billing
Stax By Fattmerchant
Tipalti
Datagate Innovation
Odoo
Scoro
Navigator Business Solutions
Geo
CommentSold
Soffront Corporation
1CRM Systems Corp.
Mail Technologies Inc
vcita
PeoplePlus Software
Zahara
Companies of all types and sizes use billing software to create invoices and deliver them to customers as a primary means of requesting payment for their goods and services. By utilizing this specialized software, companies are able to streamline their invoice creation and management processes, allowing for improved accuracy and less time and effort.
Billing software allows companies to better manage invoicing for a variety of products and services. While this kind of software is widely used by office managers and accounting professionals, project managers or sales personnel can also use it to perform estimates and provide customers with necessary invoices.
These billing solutions are designed to integrate with both accounting software and CRM or ERP software solutions to store customer information and details regarding the services or products they received. Meanwhile, accounting software or an ERP module is used to perform the last act of the billing process, receiving payment.
Billing software solutions deliver the functionality needed to collect revenue and help successful businesses achieve their end goal. Despite targeting businesses of different sizes or certain professions and varying greatly in the breadth of their capabilities, each of these solutions allow users to automate and streamline the billing process. For many businesses, collecting payments from customers is a time-consuming hassle. Billing software helps in this regard by automating workflow and making the collection process much easier.
With billing software, users are able to create invoices to be automatically sent to customers for payment collection. Many billing solutions provide pre-made invoice templates ideal for users needing nothing more than simple and straightforward invoice layouts. Some also offer a custom invoice creator to personalize and brand invoices to meet a company’s specific needs. Once created, users can choose to deliver the invoice online or print and mail the invoice to a client's physical address.
Today, most businesses opt for the online approach for a number of reasons. Not only can users set invoice reminders to alert customers of an impending payment due date, but customers are able to immediately reply to payment requests by making a payment via a payment gateway or by using one of several payment methods through the invoice directly. Digital invoices can be set to receive payments via credit card or any number of electronic payment systems on a one-time, subscription, or monthly recurring basis.
For service-oriented companies and those offering project-based services, billing software also offers time tracking functionality to accurately record and bill for hours worked. Not only can hourly rates be adjusted for specific projects and employees, but the expenses incurred to complete each project can also be documented. When the information is entered, an invoice can be delivered and payment received.
Creating invoices and billing customers is but a single aspect of responsible financial management, and it should fit seamlessly into a greater accounting software environment. Therefore, the majority of these solutions are designed to integrate with a variety of other CRM, ERP, and accounting tools for improved insights into important business data and processes. Billing software provides a business with a central location for taking care of all of its invoicing, billing, and collection needs, allowing it to remain highly efficient and organized as its customer base grows.
Billing software plays a key role in a wide-variety of businesses and is used by various employees in a number of roles within an organization. That said, it is most widely used by in-house accountants responsible for accounts payable and receivable or anyone tasked with collecting payments from customers. Some larger companies have collection specialists, billing coordinators, billing analysts, and so on who use billing software as well.
In the world of healthcare, medical coders and billers are responsible for collecting payments. However, this form of bill collection is highly regulated and more complex in nature as it requires dealing with insurance claims and the various complications that often arise on that end of the business. With private practices who choose not to outsource the work to a medical billing service, it is often the office administrator or even the doctor who is responsible for filing claims and bill collection.
When it comes to professional services, the duty of invoicing customers may be left to the project manager. This is done on a per project basis and reflects the specifics of the project, such as the cost of materials, the number of hours spent on the project, the hourly labor cost, and the overall cost for the customer. Generally, the project manager is the one responsible for working with customers to ensure payments are received in a timely manner, regardless of a project’s progress.
For small businesses without a dedicated accounting team, the business owners are typically responsible for invoicing customers and collecting payments. These users often use an accounting tool designed for small businesses with invoice templates for easy invoice creation. Such solutions are built from the ground up for those without accounting or collections expertise.
At first, the reasons for utilizing billing software seem apparently simple. Upon second glance, however, modern billing solutions appear to offer businesses and accounting professionals a wide range of advantages. From better record keeping and basic invoice organization to automated payment collection and improved customer relations, the problems solved and the benefits provided by billing software are vast:
Automated Billing
Prior to the advent of billing software and automated billing, businesses would have to painstakingly create invoices using Microsoft Word or some other document creation software. The invoices would then need to be individually printed and mailed to customers one by one. After receiving an invoice several days later, a customer would typically write a check and send it back in the mail to the business.
Billing software significantly streamlines this process. Users can choose from templates or create custom invoices online and instantly send them out to customers via a client portal or email. With this system of online invoicing, customers are able to pay instantly and businesses can receive payment in a matter of minutes rather than days.
In addition to saving businesses time and effort, invoice and billing automation also allows for greater tracking capabilities, the ability to send payment reminders, and substantially reduce the occurrence of late or missed customer payments. As a result, businesses can boost revenue growth and overall valuations from one month, quarter, and year to the next.
Better Organization
When dealing with multiple customers, businesses may find it challenging to organize and keep track of every single invoice. Billing software is helpful in this regard as well. These software solutions provide businesses with a single centralized location for each and every invoice, so there’s no need to scramble in search of documents related to paid and unpaid bills.
The online billing hub helps businesses keep better track of every customer and their payment status. By being able to consistently follow-up with customers and request payments, customer relationships are improved.
It also improves overall accounting by helping keep track of incoming finances. Without billing software or another payment management solution, accounting departments operate less efficiently and spend unneeded hours simply organizing and trying to make sense of invoices.
Accurate Tracking and Record Keeping
By integrating with accounting solutions, billing software is designed to let users easily store and track accounting records. In addition to keeping track of all expenses and invoice records, the software also records customer payments for added transparency and more accurate accounting throughout each billing cycle.
This data is helpful in a number of ways, particularly in its ability to provide deeper insights into customers and their financial standing. This is extremely beneficial, especially for companies whose customers are billed on a subscription basis.
Stronger Customer Relations
Sending timely alerts to customers with unpaid balances not only helps ensure timely payments – it also allows businesses to reach out to customers and build stronger customer relationships. Although payment reminders may seem annoying at first, customers ultimately want to make payments on time, so taking a proactive approach to bill collection is helpful. Through the use of client portals with alert and inquiry functions, accountants and customers are also able to converse, allowing for improved customer service and more positive relationships.
Time is an invaluable resource for small businesses. In addition to a bevy of other tasks needed to keep a company’s finances in order, small businesses must rely on a small team or a single accountant to manage accounts payable and receivable, manage invoicing and billing, and keep the books balanced. Billing software solutions for small businesses can help streamline the collection process and alleviate some time constraint.
When it comes to billing practices, efficiency is a must for small businesses looking to maximize both time and revenue. Billing software helps maximize efficiency by offering features for invoice creation, time tracking, due dates and payment reminders, payment collection, automatic tax calculations, and much more. These features help busy accountants stay on top of the finances and out of the weeds by automating virtually the entire invoicing, billing, and collections process.
Perfect for small business owners just starting out, several billing software products are completely free or offer a free trial. However, it’s important to note these options are less focused on robust features and more focused on ease of use.
Physician’s offices, hospitals, rehabilitation facilities, and other health institutions use medical billing software to create, send, and manage the invoice and billing processes for their patient services. Unlike other industries, which can use more generic billing software, the unique requirements of the healthcare industry demand the use of specialized medical billing software solutions. These tools provide added functionality specifically designed to help medical coders and billers, who must code patient charts and file insurance claims.
Medical billing software is often created to seamlessly integrate with other software tools necessary for successful medical or hospital operations, such as medical practice management software. These tools generally include native invoicing and billing features, so there is no need for a separate billing tool. Often, the decision to use medical practice management software or a standalone billing tool depends on the size of the medical office and the procedures being conducted. Hospitals and most larger facilities or practices opt for a more comprehensive solution.
Legal billing software serves as a foundational piece of any law firm. It allows attorneys to easily and accurately calculate billable hours and create invoices requesting payment for services rendered. This specialized billing solution can be utilized by entire law firms and legal departments or by independent practices.
Most law firms bill hourly, creating the need for accurate time tracking features. Legal billing software tools provide features specific to an attorney’s needs, such as split- and retainer-fee functionality. They also offer native activity coding functions designed to align with the uniform codes of the American Bar Association.
The automation of uniform billing information is helpful for companies and clients who want to keep a closer eye on their legal expenses and track them more accurately. What was once a much more manual and subjective administrative task is now automated and streamlined thanks to legal billing software.
Choosing a legal billing software largely comes down to the type of legal institution it is being used for. Large firms, small firms, and standalone legal practitioners all have different needs in terms of features and functionality. That said, every necessary legal billing feature is included in most legal practice management software solutions. They provide tools specific to the management of a law firm’s daily operations, including legal billing, client management, case management, and more.
Companies in the business of selling physical goods often opt for an inventory-centric billing software tool. As detailed above, many invoicing and billing software tools focus on billing by the hour or for services rendered. Businesses who sell products rather than services and maintain an inventory can benefit from billing software with specific features related to both financial and inventory management.
The features offered by billing software provide users with a range of benefits, but most revolve around automating the collection process and minimizing the occurrence of late payments. Nonetheless, here are several reasons for businesses to begin using billing software, including:
Digital Invoicing
Not long ago, businesses had no other option than to manually create each invoice and send them out to customers through the mail one by one. From invoice creation and delivery to receipt of payment, this was an extremely time-consuming process every step of the way.
Many invoicing or billing products allow users to print invoices the old-fashioned way. However, by using modern billing software, businesses can utilize online invoicing to send invoices to customers instantly. This software also allows businesses to send out invoices simultaneously to customers around the world.
Furthermore, since customers can immediately submit payments via the online invoice, businesses can collect payment much more quickly. This is helpful for all types of businesses, but particularly for companies who conduct business around the globe.
Other features of billing software, such as the ability to record and convert financial documents in all currencies, only make the argument for using this software more compelling. The ability to automate and streamline billing procedures is quite important and a major reason for the software’s popularity and widespread use.
Invoice Creation
Billing software provides users with quick and easy invoice creation. Prior to this software, users had to manually build out each invoice, which was both labor intensive and time-consuming. With billing software, templates can be used to quickly create invoices and streamline the process.
To customize an invoice, users can include a logo, branded colors, business address, and any other personalized information allowed in the form. There are also additional fields to include receipts, tax rates, and other items to justify expenses and correctly bill a customer.
Estimates
Much like invoice creation, many billing software solutions also allow users to create estimates via pre-made templates and a variety of customization features. By creating estimates within invoicing software, users can seamlessly turn estimates into invoices without needing to repopulate all of the information into an invoice. It also allows users to effortlessly record estimated histories, giving them the ability to track acceptance rates, evaluate promotions, optimize pricing, and so on to increase revenue and profits.
Revenue Tracking
A major advantage of billing software is its ability to help businesses keep track of revenue. These software solutions often integrate with accounting tools and CRMs to record and track every financial detail. They allow businesses to not only know which customers have paid their bills, but they also help provide deep insights into a company’s overall financial status. This data can also be used in corporate performance management solutions to create forecasts, build budgets, and more.
Time Tracking
Prior to modern billing software, companies and firms were reliant on spreadsheets to record billable hours. In addition to their many other functions, billing tools also offer billable time tracking features, which allow employees to record exactly how much time it took to complete a project and bill appropriately. Different rates can also be set for different projects, giving both users and clients deeper insights into project costs.
Payment Tracking
Billing software allows businesses to easily see who is lapsing on their payments. Not only do most solutions send an automated payment alert or reminder to help facilitate timely payment, but they also offer payment reports, giving companies a quick rundown on at-fault customers. Conversely, the same reports can also offer insights into those who require a refund or may have earned a credit by overpaying their invoice.
Automated Payment Reminders
Small businesses, lawyers, or project managers with just a few clients may not be too burdened by giving them a friendly call as a reminder of an upcoming payment. However, businesses with thousands of clients will find this a time-consuming hassle. Billing software gives users the ability to set up automated payment reminders to alert customers of an upcoming payment due date.
By making use of this feature for all customers, accounting and accounts receivable departments save substantial time, effort, and stress by no longer having to call and pester clients for money. Automated payment reminders also help ensure fewer missed payments as well.
Flexible Billing
Billing software often includes subscription management features, allowing users to create unique billing structures and provide different pricing packages for different customers. Different billable hours or service rates can also be set for different employees based on specialty, experience, or the nature of the job. These flexible billing options help accountants and sales teams provide the reasoning behind the pricing, the level of discount being provided, and details regarding the one-off value customers are receiving.
The flexible billing options offered by billing software are very important for project-based businesses and professional service providers. Rather than having a single standard rate, billing rates can be set for specific projects or employees. Businesses can also use this feature to bill anytime during a project, such as at the halfway point or when another milestone is reached. This is particularly helpful when procuring materials for client projects.
Recurring Billing
Businesses with long-term customers can utilize billing software to establish recurring payments. This common feature allows businesses to automatically charge customers weekly, bi-weekly, monthly, annually, or any other agreed upon time frame. If a credit card is submitted by a customer as their preferred method of payment, the card will be automatically charged on each pre-set date.
This is beneficial for the company and the customer because the software ensures every payment is made and received in a timely manner. Subscription-based businesses often refer to these solutions as subscription management software, but the two overlap in several ways.
Mobile Billing
Most billing solutions also provide users with a mobile application to both receive invoices from vendors and send invoices out to clients while on the go. This accounting mobility is particularly beneficial for service-based business. Whenever a job is completed, an invoice can be immediately sent by the employee. By sending it right there on-the-spot from a mobile device, there is no need to spend the time writing an invoice up later. It can be sent and received right then and there. For small businesses, mobile billing is a big time-saver and an invaluable tool.
Client Portals
Some billing software solutions provide a client portal where accountants and clients can log in to answer questions each party may have. It also provides different departments with a central location to view billing details. Businesses can also use the client portal to clearly state payment options and information.
Plus, client portals provide customers with somewhere to view their account details, such as their transaction and payment history. From here, they can also see whether they have any outstanding payments. Rather than submitting a request for a particular receipt or invoice, customers can also simply download the documents directly from the portal. In addition to being a huge time-saver for businesses and customers, it provides a higher level of transparency between clients and project managers.
The risk of error is always present whenever transactions are being made. When it comes to billing software, errors can take place or form in a few ways:
Issues with Automatic Billing
For the most part, this is a potential issue with software specifically created for managing subscriptions, but it can be a potential source of problems for billing software as well. If a client or customer enrolls in automatic billing but doesn’t have enough funds in the account to cover the payment, then the transaction would be denied.
Automatic billing may also become problematic when attempting to collect payment by a specific date. Of course, despite safeguards against it, there is also the risk of a customer being enrolled in automatic billing unknowingly, which could result in headaches and possible civil litigation.
Failed Transactions
The risk of a failed transaction also exists. This could happen due to insufficient funds, an expired card, or any number of reasons. Regardless of why it occurred, a failed transaction can cause cash flow problems for certain businesses and headaches for the accounting teams of larger companies.
Promotions and Discounts
Flexible payment options are a feature of many billing software products, but this can result in customers paying the wrong amount when not communicated properly. If a sales team member provides an incorrect discount, an error could easily occur. However, many billing solutions also display a credit whenever a customer overpays, so this is rarely an issue.
Innovation has come slower to the billing software world than it has to many other software forms. However, billing software has benefitted from recent trends in the software industry as a whole. This includes the advent of integrations and mobile and cloud-based applications.
Continuing to follow greater software trends, the future of billing software may include the use of blockchain technology. Blockchain accounting ledgers would help alleviate security concerns by encrypting data like contract terms. It would also speed up transaction speed and help ensure the privacy of the transaction amount.
With blockchain, users would also be able to optimize their ledgers and time by automating even more of the recording and billing processes. For instance, payment could automatically go into the blockchain ledger while the information is simultaneously recorded. This would improve accountants’ lives month after month, quarter after quarter, and year after year.
Billing software seamlessly integrates and works with software in several other related categories, particularly accounting software. By connecting their billing software with their accounting software, businesses can improve data recording and tracking while automating a number of accounting tasks. Smaller businesses may benefit from small business accounting software, which includes online invoicing, invoice creation, and all of the necessary accounting functions a small business needs.
ERP systems can also be used for access to billing modules within a greater accounting environment. Meanwhile, CRM systems can automatically connect to billing solutions for added insight into the billing history of specific accounts and any outstanding payments a customer may have. This can help align accounting and sales departments by offering transparency from one business unit to another.
For companies in the professional service sector who tend to bill hourly, connecting billing to time tracking is crucial. Knowing how long an employee spent on a project and how much revenue they earned the company while on the project is critical for business success. Often billing and time tracking functions are both featured in professional services automation software, or PSA.
Lastly, subscription management software provides subscription-based businesses with recurring billing functionality. With it, recurring payments are automatically processed, making it a huge help for companies relying on monthly or yearly subscriptions.