Invoice management ensures that customers are accurately and promptly billed for the goods they receive. Because it builds trust and confidence in the business, customers are more likely to be satisfied when they understand and agree with what their invoices say.
It also prevents disputes, resolves the problems of unhappy customers, and eliminates the concern of a failed business.
If your invoicing software is a tool they can’t understand, It is easy to see, then, that difficult invoicing software reduces customer retention and satisfaction. In this post, we’ll discuss the best invoice management tools: Quickbooks, Xero, Freshbooks, Square Invoices, and Zoho Books. We’ll go over each tool’s features, pros and cons.
QuickBooks is a popular invoice management tool. It helps you create custom invoices, match invoices to payments, and send payment reminders automatically.
It also helps you centralize expenses, create categories, monitor sales tax, and manage orders and quantities in real-time. Plus, it offers multi-currency support, lets you access insights and reports, and features a mobile app.
A small issue is it can be a bit costly. It also doesn’t feature industry-specific features, like barcode scanning and tracking.
Like other invoice management tools on this list, Xero streamlines how you pay bills, establish bank connections, accept payments.
Other than the fundamentals of invoice management, Xero generates professional quotes (that you can send instantly via desktop or phone), auto-calculates sales tax, and prepares tax returns. It can also inform clients of their financial health, future cash flow, and metrics.
You can use it to track finances such as invoices, bank balances, and bills, and update fixed assets. You can integrate Xero with Shopify, too.
Its inventory side is limited, though—no multi-currency support (on its free plan) and limited expense claims. And if you want to follow up on unpaid invoices, you have to do it manually.
Because of its strong invoicing function, FreshBooks can improve customer retention and satisfaction rates.
FreshBooks features a balance sheet, general ledger, costs of goods sold, and trial balance. It also comes with small business accounting software and stores journal entries.
The fact that it’s easy to use is one of its pros. For this reason, small businesses, freelancers, and digital solopreneurs can easily learn about invoice management.
A minor concern is its cost. For one, its least expensive plan (Lite plan) doesn’t feature bank reconciliation tools and in-depth accountant access.
Square Invoices can tell you how to process an invoice the smarter way. Because its focus is on delivering a positive customer experience, users continue to want its innovative solutions.
Square Invoices allows you to send and accept payments 24/7 via Google Pay, Apple Pay, ACH bank transfer.
An unlimited number of people can use it to send invoices, and it comes with cash flow and reporting management tools. It’s also hassle-free because it lets you send and accept payments digitally—anytime, anywhere.
Its customization options are impressive; however, you need to upgrade to Square Invoices Plus ($20) to use them.
Zoho Books is an entry-level, intuitive tool. Its extensive list of features make it one of the best accounting software choices for microbusinessesBecause it’s easy to use, it can also improve customer retention and satisfaction rates.
Zoho Books features everything you need in an invoice management tool. It can help with bills, projects, sales orders, estimates, banking, and inventory. It also features a client portal that lets you collaborate with customers in real-time.
Sadly, Zoho Books may not offer support if you have growing needs. While it can help with multiple businesses, it comes with a cap of 5,000 monthly transactions.
Good invoice management is integral in maintaining positive customer relationships and working towards their satisfaction.
Each invoice management tool listed above offers a host of useful features for your business. If you need to choose a particular software, opt for one that can accommodate your needs.
If you’re a large business, the invoice management tools for you are QuickBooks and Xero.
Meanwhile, if you’re a small business or a home-based professional, consider FreshBooks, Zoho Books, and Square Invoices.