Why I Should Adopt an Invoicing Software Over Invoicing TemplatesDownload Now: FREE GST 2023 GuidebookDownload Now: FREE Employment Pass ChecklistDownload Now: Free Incorporation Checklist
When you are just starting your business, it is important to keep things as simple as possible. As a result, many business owners in Singapore use invoicing templates because they want to skip the hassle of setting up an invoicing software platform.
However, if you’re one of those business owners, you may be making a mistake.
In this article, we explain why it is time that you need to stop using invoicing templates and start using software. We also discuss the differences between the two and some key features of invoicing software.
What is Invoicing Software?
Online invoicing software is a web-based tool that businesses can use to create, send, and track invoices and automate the process of generating and paying invoices. Most platforms also have mobile apps, so that you can easily manage your invoices from your smartphone. Here are four key features of invoicing software:
- Cloud storage. Your financials are stored in real-time on servers and in the cloud. This means that you can access them remotely on any device.
- Database of customer records. Invoicing software can make a database of customer records that includes their contact details; when, how, and if they paid you; how frequently they do business with you; and much more.
- Templates. You can find and customise many predefined templates to fit your exact business needs.
- Multiple payment options. Online invoicing software allows you to accept almost every form of payment, from offline mediums like cash and checks to online methods like credit cards, debit cards, Apple Pay, Google Pay, and much more.
What follows are three key differences between invoicing software and invoicing templates:
Software is Online, Templates Are Offline
An invoice template is an offline, pre-defined layout that is downloaded before you use it. On the contrary, you can use online invoicing software anywhere and anytime, as long as you have an internet connection and a compatible mobile device.
You Can Send Invoices Directly to Your Customers
When you use invoice templates, you must send your clients the invoice as an email attachment. However, invoicing software allows you to send invoices directly to the client from the dashboard of the software application.
You Can Track Your Financials from One Place
The beauty of invoicing software is that it’s all-encompassing. It allows you to not only create, send, and manage your invoices, but also to track your finances and create financial statements such as the income statement, balance sheet, statement of retained earnings, and statement of cash flow.
Now that we’ve outlined the key differences between the two, let’s discuss the five key benefits of using invoicing software instead of invoicing templates:
#1: It’s Optimised for Both You and Your Customers
Sending invoices through invoicing software means that you can accept payments through a wide range of methods. As a result, your customers can pay their bills from their smartphones while waiting in line at the grocery store. The easier it is for your customers to pay you, the more likely it is that you’ll be paid.
#2: You Can Automate Your Invoices
When you use software, you can automate your invoices so that, for example, they send on a recurring schedule (e.g. on the first day of the month). This makes it easier to manage your relationships with repeat customers and means that you don’t waste time doing tedious paperwork.
#3: Your Sensitive Data Is Safer
Since your data is stored, processed, and backed up in the cloud, you don’t have to worry if your computer crashes or if you lose paper copies of your invoices.
#4: You Can Use It Anywhere
In the fast-paced world that we live in today, time is money. Invoicing software saves you time because you can use it anywhere, all you need is a good internet connection and a mobile device or computer.
#5: It Reduces the Likelihood of Errors
Invoicing templates require you to do everything manually, which makes it more likely that you accidentally add an extra zero where you shouldn’t have.
However, since invoicing software allows you to automate much of the process, there’s a far lower chance that you enter the wrong payment or contact information.
Sprout with Us!
Sprout Asia wants you to focus on what you do best, while we take care of the rest. That is why we offer budget-friendly accounting services, so that our experts can keep tabs on your invoices and manage your finances with ease, so you never miss out on a due invoice.
Feel free to reach out to us with any questions you may have about our services, and we will respond to you within 24 hours.