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Invoicing software: how to choose one

The choice of invoicing software is an essential part of managing any business. It avoids compromising errors, increases efficiency, and provides a clear, real-time overview of results. However, with so many options of certified invoicing software on the market, making the right decision is not an easy task. Discover the main factors to consider, and learn how to choose the software that best suits your business.

What are the advantages of invoicing software?

Besides being mandatory, using invoicing software has significant advantages for all businesses.

Invoicing software streamlines business transactions

Using invoicing software means you can issue an invoice within seconds and receive payments faster than with traditional methods. Invoices can be automatically emailed and are available in the “cloud”, making it easy to save and track documents already issued.

Invoicing software improves the customer experience

Customers also feel these benefits. Receiving invoices conveniently in their email reduces the risk of loss and increases data security and confidentiality. Moreover, if it is sent automatically, always on the same date, and to the right people, the likelihood of error is minimized.

Invoicing software makes accounting tasks easier

Systems are becoming increasingly interconnected, and invoicing software is no exception. Whenever a sale or order is received, the system can automatically update stock levels and customer records. Similarly, the latest invoicing software also speeds up an array of processes, such as checking bank statements, issuing VAT returns, monthly management of accounts, and payroll. Therefore, invoicing software can help articulate between commercial and accounting activities in a more agile and effective way.

Invoicing software provides real-time management reports

With invoicing software, you can view important data such as balance sheets, profit and loss reports, cash flow, or the business performance of certain categories of products or services through intuitive dashboards.

You can also view unpaid invoices, check your bank account balance, or even estimate the profitability of a particular task or project. All this with less manual tasks.

How to choose the best invoicing software for your business

Choosing an invoicing software is not an easy task, but with these tips, you can make an informed decision.

1. Assess your needs

The first step in selecting an invoicing software is to identify what features you actually need. The most common are of course invoicing and issuing receipts, but consider the need to control purchases and payments, bank and cash management, VAT and other taxes. Is it important to have control of customer accounts and inventory and payroll?

In addition, map out the specific needs of your business. For example, you may need the software to integrate with your e-commerce solution, or to automatically convert currencies to the correct exchange rate if you sell to multiple countries.

Also, check if the invoicing software allows enough flexibility to add, edit or delete fields and controls, customize documents, and adapt them to your visual identity.

2. Choose an invoicing software certified by the Tax and Customs Authority

The Tax and Customs Authority provides an online list of invoicing software that complies with legal requirements. So, benefit from this additional security by choosing a properly certified program. It is mandatory by law to use a certified invoicing software in the following circumstances:

  • Turnover exceeding €50,000 in the previous calendar year;
  • Annual turnover greater than €50,000 in the year in which you start your business;
  • Organized accounting.

Failure to comply with this rule is punishable with a fine.

3. Prefer invoicing software with free updates

The Tax and Customs Authority requires regular changes to invoicing programs, either to fight fraud and tax evasion, as well as to modernize the system. For example, some of the most recent changes were the mandatory use of QR codes on invoices and qualified electronic signatures.

This way, invoicing software should provide free updates, in a timely manner, so that it can smoothly follow all the changes as they are introduced.

4. Check plugins and integrations

Confirm if the invoicing software can integrate other tools you use in your business. For example, if you have an online store, it is important that the program automatically creates an invoice for each purchase that occurs on your website, and update inventory. You may also need to integrate your invoicing software with your CRM (Customer Relationship Management) system, or other platforms.

Check if you can integrate payment methods into your invoicing software. For example, PHC Software has signed an important partnership with easypay that allows users of this program to access our solutions natively without any integration effort. This makes it easier to access various payment methods, such as Multibanco Reference, MB Way, Visa & Mastercard, and Direct Debit. As a result, merchants offer customers broader payment choices, integrated into the invoicing software.

5. Don’t neglect security

Security is one of the most sensitive aspects for any company. Data loss and ransomware attacks are some of the most worrying situations, but the number of threats keeps growing. So use the latest technological innovations to protect your company.

Make sure your invoicing software runs daily backups. Replicating information elsewhere is an effective strategy to preserve data security and ensure that it is accessible at all times, eliminating the risk of loss.

6. Consider scalability

Think about the future of the company and prefer invoicing software that will sustain the growth of your business. Make sure that the program automatically adjusts to your expansion, and that it can be supplemented with different modules as you grow.

It is important that the invoicing software does not impose limits on the number of suppliers, customers, items you can create, or on the number of documents you can issue. This way, it will be able to support your company’s growth while maintaining high levels of performance.

7. Evaluate customer support

Invoicing software should be easy and intuitive to use, but customer support is still important to respond quickly and objectively to any question and problem that may arise.

Your business cannot take the risk of being temporarily unavailable, while waiting for a resolution that takes a long time to arrive. So, in your research, put all your questions forward to the support team to get to know them closely and assess their level of professionalism, involvement, and commitment.

8. Consult your team

It is important to involve your employees in the choice of invoicing software, since they will be working with the program more directly. Their knowledge and experience can be an asset to the selection process.

9. Put the invoicing software to the test

After going through these issues, you will have arrived at a couple winning alternatives. Now it’s time to put it to the test. Most invoicing software offer a free trial period, which can last up to 30 days.

Use this time to check out all the features and confirm that the program meets the requirements you set earlier. This way, you will have a proven experience before you make the final decision.

Easypay, at your side to speed up processes

With these guidelines for choosing invoicing software, you will be in a better position to make the right decision and benefit from more streamlined and efficient processes.

With easypay, you can take your business optimization even further. With only one payment gateway, you can set up your online store with Multibanco references, MB Way, Visa & Mastercard, Direct Debit, and Bank Transfer with virtual IBAN. And you can go even further with Santander Consumer Finance (Online Credit for online purchases) and Universo Flex for installment payments, a partnership with Sonae Financial Services..

Contact us and find out how to provide your customers with a smooth, fast and effective shopping experience.