An invoice manager is a tool that simplifies and automates creating, sending, and tracking invoices. Whether you’re just getting started or scaling up your business, an invoice manager can help you manage finances without the headaches of manual entry or chasing down payments.

Below, we’ll discuss what an invoice manager is, how it works, and more.

What’s in this article?

• What is an invoice manager and how does it work?
  
• Which features should an invoice manager have?
  
• Who can benefit from using an invoice manager?
  
• How much does it cost to use an invoice manager?
  
• How Stripe Invoicing can help
  

What is an invoice manager and how does it work?

An invoice manager can save time, help avoid errors, and ensure you get paid faster. Here’s how it typically works:

• Create invoices: An invoice manager allows you to create unified, accurate invoices quickly. You can input customer details, specify the products or services provided, add taxes or discounts, and include payment terms (e.g., “net 30,” which means payment is due in 30 days).

• Send invoices: Once the invoice is ready, you can send it directly to your client through the system, usually via email.

• Track payments: The invoice manager keeps track of which invoices have been paid, which are still pending, and which are overdue to reduce the chances of overlooking items such as an outstanding payment.

• Manage records: The invoice manager stores all your invoices in one place, so you can easily access them later for accounting, tax filing, or auditing purposes. It’s essentially your digital invoicing archive.

• Integrate with other tools: Many invoice managers integrate with accounting software (e.g., QuickBooks, Xero), so you can easily sync your invoices with your records. This integration reduces manual data entry substantially.

• Send automated reminders and follow-ups: Many invoice managers allow you to implement automated reminders or late payment follow-ups. A 2022 report shows that a majority of businesses experience late payments, highlighting why automated reminders can be helpful.

Which features should an invoice manager have?

The invoice manager you choose should have features that can save you time, keep things organized, and make invoicing easy. These are some of the key features to look for:

• Customizable templates: An effective invoice manager can offer customizable templates that allow you to add your logo, choose colors, and adjust the layout to match your brand’s look and feel.

• Automatic calculations: Invoices often involve taxes, discounts, or various line items. The invoice manager you choose should be able to automatically calculate totals, taxes, and any discounts applied.

• Recurring invoices: If you offer subscriptions or have long-term contracts, you’ll want an invoice manager that can accommodate recurring invoices. This way, the system automatically generates and sends invoices on a set schedule.

• Multicurrency and multilanguage support: If your business works with customers around the world, you’ll need the ability to send invoices in different currencies and languages. The right invoice manager can make it easier to do business globally without worrying about conversion errors or varying tax rates.

• Online payments: You’ll want an invoice manager that can integrate with payment platforms or credit card processors, so your customers can pay directly through the invoice. This can help you get paid faster.

• Automatic payment reminders: Getting paid on time is important for cash flow. Find an invoice manager that sends automatic payment reminders for overdue invoices. You can set the frequency (e.g., after 7 days or 15 days) so you don’t have to chase down payments on your own.

• Invoice tracking and reporting: A good invoice manager can track the status of each invoice—whether it’s paid, unpaid, or overdue—and provide you with reports to show how much outstanding revenue you have.

• Tax calculations: Your invoice manager should be able to handle tax calculations based on the locations of your business and your customers. It should also allow you to add different tax rates for various products or services.

Who can benefit from using an invoice manager?

Everyone who handles the financial side of a business—founders, the finance team, customers, investors, and more—can benefit from an invoice manager. It can help everyone stay organized and get paid faster, and it can also enable smoother financial operations as the business scales. Here’s how an invoice manager can benefit each stakeholder group.

• Founders and business owners: Founders and owners are focused on the big picture, and an invoice manager can automate much of the tedious work around invoicing. It also can help keep the books organized, which is key for taxes, investor reports, and data-driven decision-making.

• Finance and accounting teams: For finance departments, an invoice manager reduces manual data entry, helps alleviate the burden of tracking down missing payments, and organizes the spreadsheet. It can also help small teams easily track incoming payments, generate reports, and reconcile accounts.

• Sales teams: Salespeople close deals and generate revenue, but after the deal is done, they often let finance handle payment. An invoice manager can help make the handoff process more transparent. Sales teams can quickly see whether an invoice has been sent, paid, or is overdue. This transparency helps them manage the sales cycle and follow up when necessary, and it helps ensure deals are fully closed.

• Freelancers and contractors: If a business works with freelancers or contractors, invoicing can get tricky—especially if the business is managing multiple projects with different billing rates and terms. Invoice managers work well for independent contractors who need to invoice on a regular basis.

• Investors and stakeholders: Investors or stakeholders care about the financial health of the businesses they invest in. An invoice manager can help a business produce accurate, real-time reports on cash flow, unpaid invoices, and overall revenue. This helps with forecasting and reports on its financials. If a founder needs to pitch their startup to investors or apply for funding, clear financial records project confidence that their business is running effectively and that they’re managing cash flow well.

How much does it cost to use an invoice manager?

Most invoice managers offer flexible pricing, so you can choose a solution that fits your budget. But costs can vary depending on a few factors.

Subscription fees

Many invoice managers operate on a subscription-based model, where you pay a monthly or annual fee for access to the platform. The pricing usually depends on the size of your business, how many users need access, and the features you require.

Basic plans often start as low as $10–$20 per month for small businesses or startups. These typically include core features such as invoicing and basic payment tracking.

However, if you need more advanced functionality—such as recurring billing, multicurrency support, and integrations with accounting software—pricing might be higher. They can range anywhere from $30 to over $100 per month.

Some platforms also offer custom pricing if your business is scaling rapidly or has more complex needs.

Invoice fees

Other invoice managers charge per invoice, so businesses pay only for their usage. The price is typically a small percentage (e.g., 0.4%, 0.5%) of each invoice. Some platforms might also offer custom pricing for businesses that process large invoice volumes.

Transaction fees

Invoice managers that integrate with payment processing tools will likely charge transaction fees when you receive payments. These fees are usually a percentage of the payment amount, plus a small fixed fee per transaction. The convenience of having online payments automatically processed, tracked, and integrated with your invoices often outweighs these costs—especially when you consider the time you save.

How Stripe Invoicing can help

Stripe Invoicing simplifies your accounts receivable (AR) process—from invoice creation to payment collection. Whether you’re managing one-time or recurring billing, Stripe helps businesses get paid faster and streamline operations:

• Automate accounts receivable: Easily create, customize, and send professional invoices—no coding required. Stripe automatically tracks invoice status, sends payment reminders, and processes refunds, helping you stay on top of your cash flow.
  
• Accelerate cash flow: Reduce days sales outstanding (DSO) and get paid faster with integrated global payments, automatic reminders, and AI-powered dunning tools that help you recover more revenue.
  
• Enhance the customer experience: Deliver a modern payment experience with support for 25+ languages, 135+ currencies, and 100+ payment methods. Invoices are easy to access and pay through a self-serve customer portal.
  
• Reduce back-office workload: Generate invoices in minutes and reduce time spent on collections through automatic reminders and a Stripe-hosted invoice payment page.
  
• Integrate with your existing systems: Stripe Invoicing integrates with popular accounting and enterprise resource planning (ERP) software, helping you keep systems in sync and reduce manual data entry.
  

Learn more about how Stripe can simplify your accounts receivable process, or get started today.