Invoice creation software handles every aspect of the invoicing process, from invoice generation to tax calculations, payment reminders, and real-time tracking of accounts receivable. These programs can handle thousands of invoices per month, integrate with other financial systems to pull in relevant details, and even flag discrepancies or potential issues before invoices are sent to clients. In a 2023 survey, 35% of accounts payable leaders said they were prioritising the elimination of paper invoices and manual tasks.
Below, we’ll discuss the types of businesses that can benefit the most from invoice creation software, what features you should look for, and how to create custom invoices with this technology.
What’s in this article?
- Who benefits most from invoice creation software?
- What features should you look for in invoice creation software?
- How can you customise invoices using software?
Who benefits most from invoice creation software?
Although almost any business can benefit from invoice creation software, those that handle frequent, complex, or high-volume billing processes see the greatest return on investment. Here’s a closer look at these sectors and scenarios.
Freelancers and small businesses
Freelancers, consultants, and sole proprietors often lack dedicated accounting departments. Invoice creation software can empower these businesses to:
Save time by automating repetitive tasks such as recurring invoices
Maintain professionalism with polished, customisable templates
Track payments and send reminders to clients
Service-based businesses
Industries that bill by the hour or project – such as law firms, marketing agencies, and IT services – might struggle with complex processes and risk calculation errors. They can use invoice creation software to:
Itemise services provided, sometimes across multiple dates or employees
Integrate time-tracking tools directly into invoices
Generate detailed reports for clients or internal reviews
Subscription-based businesses
Companies with subscription services – whether they’re software-as-a-service (SaaS) businesses, gyms, or content platforms – rely heavily on recurring billing. They can use invoice creation software to:
Automate monthly or yearly invoicing
Handle pro-rata calculations for upgrades or cancellations
Track payment statuses for ongoing subscriptions
E-commerce and retail
E-commerce businesses often juggle high transaction volumes and work with customers worldwide. They can use the software to:
Automatically generate invoices for online purchases
Apply tax rules for different regions
Integrate with payment gateways and inventory management systems
Construction and trades
For contractors and tradespeople, accounting for project milestones, materials, and labour costs can complicate invoicing. Invoice creation software can help them to:
Create detailed, itemised invoices
Manage progress payments for long-term projects
Integrate with accounting software to track overall project profitability
Creative professionals
Photographers, designers, and writers often work on a per-project basis. The software can:
Enable flexible billing that incorporates deposits, milestones, and final payments
Present invoices in a visually appealing format consistent with their brands
Manage varying tax rules for clients across regions or countries
Healthcare providers
From private practice doctors to personal trainers, providers in healthcare can use invoice creation software for:
Automated billing systems that integrate with appointment scheduling software
Features that comply with data protection laws to protect sensitive client information
Customisation for private insurance claims and invoicing
Charities and educational institutions
For charities and educational institutions, invoice creation software can:
Simplify invoicing for funding purposes
Manage payments for donors, event participants, or students
Generate clear financial reports for stakeholders or audits
What features should you look for in invoice creation software?
Software such as Stripe Invoicing can help you get the most out of your invoicing process. Here’s what you should look for in potential software options.
Invoice quality
Invoices can affect whether clients work with you again. Stripe ensures that the invoices you send are clear, intuitive, and easy for clients to pay, which can emphasise your professionalism and set you apart in competitive industries.
Error detection
Issues such as forgetting to include a late fee, charging the wrong amount of tax, and sending an invoice to the wrong client can reduce your profits. Stripe Invoicing automates these elements, significantly lowering the risk of errors.
Scheduling options
Most people don’t give a lot of thought to when they send invoices, but timing matters. Stripe makes it easy to experiment with these variables and test out different options. For example, you might experiment with sending invoices within one hour of project completion and find it boosts payment times.
Detailed analytics
Good invoicing software can show you how your revenue flows and provide actionable insight about your finances. For instance, how much of your income comes from repeat customers? What percentage of your invoices go unpaid and how often do clients need reminders to pay?
Integration with other software
Your invoicing software should feel like a natural extension of the technology you already use. Stripe is designed to integrate with accounting software for reconciliation, customer databases for recurring invoices, and time-tracking tools for hourly billing.
Cross-border considerations
Businesses that operate internationally need to handle different currencies, local tax rules, and potential payment processing delays. While some invoicing software options help with only currency conversion, Stripe goes further with local tax compliance and payment processing features that work internationally.
How can you customise invoices using software?
Businesses should customise their invoices to reflect their brands and meet their unique needs and those of their customers. Here’s how you can do so with invoice creation software like Stripe Invoicing.
Brand identity
Logos and brand colours: Reinforce your identity by including your logo, matching your invoice colours to your brand palette, and choosing fonts that reflect your style.
Personalised messaging: Include a custom thank-you note, payment instructions, or terms of service to add a human touch.
Details of work provided
Charge itemisation: Break down charges by product, service, or time spent.
Custom descriptions: Edit line item labels to match the services or products you deliver.
File attachments: To provide full context, add supporting documents such as contracts, detailed breakdowns, and project timelines.
Tax and currency calculations
Tax calculations: Automatically apply taxes based on the customer’s location or the rules governing your business, such as value-added tax (VAT) and goods and services tax (GST).
Multi-currency support: If you work with international clients, display amounts in their preferred currencies for clarity and convenience.
Payment information
Payment deadlines: Adjust due dates to match your agreements, whether those deadlines are immediate, net 30, or custom terms.
Payment methods: Customise payment options (e.g. credit card, bank transfer, digital wallets) to what your clients are most likely to use.
Click to pay: Include live payment buttons or links so clients can settle invoices immediately.
Recurring and subscription options
Recurring templates: Save time by creating templates for invoices you send repeatedly, such as for monthly retainers and subscription fees.
Automated discounts: Customise recurring invoices with ongoing discounts or prorated charges for subscription changes.
Language localisation
Localised content: Use the client’s preferred language to customise invoices.
Regional formatting: Adjust date formats, address structures, and numbering styles to match local norms.
Tracking and reporting
Invoice numbers: Use invoice numbers that you and your client can refer back to.
Internal notes: Include a section that’s visible only to you, where you can write down important details to remember.
Invoice categories: Categorise invoices for easier tracking.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.