Do you know what the smartest thing a business can do is?
Find the best invoicing program.
Thousands of businesses struggle with cash flow issues that could have been avoided with an invoicing software. And here’s the catch…
The invoicing program that suits a small business does not necessarily serve an enterprise. These two business types have completely different needs.
The good news is there’s an ideal invoicing solution for each size of business. You just have to know what to look for.
In this post:
- Why invoicing software is essential to every size business
- Must-have features for startup invoicing programs
- Must-have features for established company invoicing programs
- How to pick the best invoicing software for your business
Why Invoicing Software Is Essential to Every Size Business
Late payments are killing businesses these days.
According to an Atradius 2024 report, half of all US invoices are overdue right now. A number so staggeringly large is, of course, not happy news for any company.
The problem is that manual invoicing is just too slow. If you’re working hard at developing your SME or are running an established enterprise, the right invoicing program will make a real difference between good cash flow and burning money.
The market understands. The global billing and invoicing software market is set to grow at a CAGR of 12.51% through 2033. Businesses worldwide understand that they need better tools.
When the invoicing process is seamless and swift, you’ll get paid faster. When you get paid faster, your business will be more successful than ever. I don’t think it can be stated more simply than that.
Must-Have Features for Startup Invoicing Programs
When you run a startup, you don’t need over-complicated and hard to handle solutions.
This is why startup invoicing solutions should be basic, fast, and easy to use. The right invoicing program for early stage companies needs to have these features.
- Easy setup – Without technical expertise or much time
- Low cost – Free or affordable monthly plans
- Mobile access – To create and edit invoices anywhere
- Payment integration – Take payments directly on invoices
- Basic automation – Automatic reminders for overdue invoices
Here’s what many startups don’t realise…
Cloud-based invoicing solutions are ideal for small businesses. They don’t require any infrastructure, are constantly updated, and are scalable enough to grow with your company.
The simplicity factor is just so important that it can’t be stressed enough. Running a startup business takes all of your time. You shouldn’t have to waste hours on how to send an invoice properly.
Pretty simple, right?
Look for invoicing solutions that allow you to create professional invoices in less than five minutes. If it takes more, you’re looking for overkill for a young business.
Must-Have Features for Established Company Invoicing Programs
Larger companies present different needs.
When you process hundreds or even thousands of invoices a month, simple solutions won’t work. The invoicing software that serves big companies will include these features:
- Multi-currency invoices
- Complex approval workflows
- Integration with existing accounting systems
- Advanced reporting and analytics
- Compliance with international regulations
The point is, a change of scale changes everything.
Enterprise-level invoicing solutions need to be able to sync with your ERP, CRM, and other business solutions without issues. This is when data should flow automatically between platforms with little to no manual intervention.
Security is another important aspect. Large companies work with a lot of sensitive financial data that need proper handling. The invoicing tools with bank-level encryption and regular security audits should be your priority.
Automation is another factor that will save you a lot of time and money. The right invoicing program can reduce manual work to a minimum freeing your finance team from the most repetitive tasks to more strategic work.
Choosing the Right Invoicing Solution by the Business Stage
Each stage of business growth requires different approaches to invoicing.
Solo Entrepreneurs and Micro-Businesses
Free options or low cost options. You don’t need any enterprise features when you send ten invoices a month. Focus on user friendliness and professional appearance.
Growing Small Businesses
Mid-tier invoicing software. Automation features like recurring invoices and payment reminders are important here. Integration with your accounting software is important too.
Medium-Sized Companies
Comprehensive invoicing platform. You will need better reports, team access, and more sophisticated workflows. The investment will pay off through saved time.
Large Enterprises
Enterprise invoicing solutions. Custom integrations, dedicated support, and advanced compliance features pay off with the higher cost.
The Hidden Costs of Inefficient Invoicing
Businesses tend to underestimate what bad invoicing really costs them.
From late payments to time wasted on chasing those payments to damaged client relationships to stress on the finance team.
The numbers will show the real deal.
Small businesses that have overdue invoices report more cash flow issues, increased use of credit cards, and even lack of opportunities to hire skilled staff. The poor invoicing practices cause a ripple effect across the whole organisation.
Here’s one to think about:
What could your team accomplish if they weren’t always on the hunt for unpaid invoices? The right invoicing program will not only save you money. The right invoicing program will also save you time and much-needed sanity.
Common Mistakes When Choosing Invoicing Software
There’s a lot of businesses that make the same mistakes when choosing the invoicing software for their companies.
Mistake #1: Overbuying features
A startup company needs simple and basic invoicing software that will work for its invoicing needs. Paying for extra features that will never be used is a waste of resources.
Mistake #2: Ignoring scalability
And the business grows and the same invoicing tools need to be able to work with the changing needs of a business. Buying invoicing tools that will not be scalable to a larger business is a massive mistake. Migrating all of the existing data to a new invoicing platform is painful and costly.
Mistake #3: Forgetting integration requirements
Your invoicing software needs to work with your other business tools. Double-check integration capabilities before purchasing.
Mistake #4: Skipping the trial period
Most invoicing programs will offer free trials. Use it to the fullest. What might look appealing on a features list might be next to useless in reality.
Switching to a New Invoicing Program
Do you use an invoicing tool that does not work for your company?
Switching to a new invoicing program is not as difficult as you might think. Invoicing programs these days have data import features that will help you migrate your existing client and invoice data.
Here is what to do:
- Evaluate what exactly the existing invoicing program makes wrong
- Create a list of must-have features for a invoicing program of your business size
- Test two to three options with free trials
- Migrate during a quiet period
- Train your team correctly
Temporary disruption will be worth it in the long run.
Wrapping Things Up
Selecting the right invoicing program is about understanding the needs of your business.
Startups need to focus on simple and affordable invoicing solutions. Established companies need robust features and integrations. Everyone needs automation that will reduce manual work.
The global billing and invoicing software market is growing for a reason. Businesses from all sizes are discovering that professional invoicing tools will bring you real returns in the form of:
- Faster collection of payments
- Reduced administrative workload
- Better visibility of cash flow
- Improved client relationships
- Scalability and more growth opportunities
Don’t ever underestimate the power of invoicing. The right invoicing program for your business size is there. You just need to know where to look.
Start assessing your options now. Your cash flow will thank you tomorrow.
