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Blog » Business Tips » 5 Ways an Invoice Management Program Can Benefit Your Business

5 Ways an Invoice Management Program Can Benefit Your Business

Updated on January 17th, 2022

As a freelancer and business owner, I’m always looking for ways to streamline my processes so that I have more time to spend on what really matters to me.

One way to cut down on time spent, and ensure that I get paid, is to make use of invoice management tools. The right program can be a great help to your business, whether or not you are a freelancer:

1. Give Your Clients and Customers More Options

Today, clients and customers like to have more options when it comes to paying. An invoice management system that is compatible with different processors makes it easier for your clients and customers to pay as they prefer. The system I use allows my clients to choose PayPal, eCheck, or credit card.

Invoice management programs often have arrangements that can make things affordable for you, while allowing you to accept different types of payment — without the need to go through the process of setting up multiple merchant accounts.

2. Keep Track of Who Has Paid

I don’t like to spend a lot of time chasing down deadbeat clients, or trying to figure out who owes me what. I save a lot of time with an invoice management system that keeps track of that for me. If you can just log in once a week and see who has paid and who hasn’t, you can quickly understand what needs to happen next. Sending a reminder is as easy as a button click. Plus, I can also see which clients are approaching 30, 60, and 90 days overdue. This prevents me having to look up that information myseld, and makes it easy for me to see what kind of template email I need to send asking for payment.

3. Invoice Templates

Creating an all-new invoice for each client each month gets tedious and time-consuming. The right invoice management system will let you create templates that can be used regularly. With a little tweaking, you can be done, and move on to the next invoice. This ability has cut my invoicing time in half. Make it a point to save your templates, and use your system to quickly access exactly what you need.

4. Recurring Billing

If you have clients that you know you will bill on a recurring basis, a good invoice management system can be very helpful indeed. You can automatically send new bills each month — without the need to do much other than spot check to make sure things are running smoothly. I like this feature when I’m working with a client who pays up front, or who has me on retainer. It cuts down on the work I have to do, saving me time.

Additionally, invoicing systems that include time tracking can also be a great help to you in saving you time and cutting down on paperwork.

5. Take the Tax Deduction

Some invoice management services charge a fee for certain actions. If you end up paying a fee, you can deduct it on your taxes. The costs of adding clients or paying transaction fees can be included as a tax deduction. While it won’t completely balance the cost, it will offset it to some degree.

Miranda Marquit

Miranda Marquit

I'm Miranda and I'm a freelance financial journalist and money expert. My specialties are investing, small business/entrepreneurship and personal finance. The journey to business success and financial freedom is best undertaken with fellow travelers.

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