Manually creating customer or client invoices is time-consuming and prone to human error. A billing and invoicing system ensures accuracy, speed, and reliability in generating invoices and managing billing cycles. It automates the process to reduce the risk of errors, expedite payment collection, and improve cash flow management.
From invoice management and reporting to expense tracking and client communication, billing and invoicing tools offer a comprehensive suite of capabilities to meet the diverse needs of dynamic workplaces. However, understanding the most critical software features is crucial for businesses to shortlist a product that meets their needs.
This article highlights five key features of billing and invoicing software based on the ratings given by verified software users. We’ve also included the highest-rated billing and invoicing software products for each feature.
1. Invoice creation
The invoice creation feature of a billing and invoicing tool lets businesses generate invoices for products or services delivered to customers. It automates processes such as adding item details, calculating totals, applying taxes, and formatting the invoice layout. Users can customize the invoice template to reflect their branding, including their company logo, color schemes, and layout preferences. This feature also includes a built-in calculator to automatically compute subtotals, taxes, and discounts based on the itemized entries and predefined settings.
What business problem does invoice creation solve?
Manually creating invoices can be time-consuming and prone to errors, especially for businesses with large volumes of sales transactions or recurring billing cycles. The invoice creation feature automates this process, saving time and reducing the risk of incorrect data entries or calculation errors. Moreover, the software automatically sends the invoices to clients, leading to quicker payment processing. This helps improve cash flow by reducing the time between product or service delivery and payment receival.
Ideal users of the invoice creation feature
Billing, accounting, and finance departments can use this feature to generate invoices based on sales agreements or contracts. They can bill clients for the services rendered or products sold. Additionally, administrative professionals or office managers responsible for invoicing-related tasks can use this feature to ensure timely billing and maintain accurate records.
Top 3 products with the highest ratings for invoice creation
We selected products for this article based on their average ratings between March 2022 - March 2024, which may differ from their current overall average ratings.
Trial/Free Version
- Free Trial
- Free Version
Invoice creation feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Invoice creation feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Invoice creation feature rating
Device compatibility
2. Invoice processing
The invoice processing feature of a billing and invoicing tool automates invoice creation, tracking, and processing. It also automates repetitive tasks such as recurring invoice generation, sending reminders for overdue payments, and applying late fees. Users can track the status of invoices, whether they have been sent, viewed, paid, or are overdue, enabling proactive accounts receivable management. This feature often supports various payment methods, such as credit cards, bank transfers, and online payment gateways.
What business problem does invoice processing solve?
A disorganized or manual billing system can lead to inefficiencies such as payment delays, amount miscalculations, high processing time, and scalability issues. The invoice processing feature addresses these bottlenecks by automatically fetching and populating invoice data from other integrated systems, such as inventory management software. It also establishes validation checks to minimize errors in quantities, rates, and calculations. Moreover, it centralizes billing information, making it easier to create, track, and manage invoices in one place.
Ideal users of the invoice processing feature
Accounts and finance departments can use this feature to process, send, and track invoices for timely customer payments. They can issue reminders for outstanding payments from within the software, improving client communication and reducing administrative burden.
Top 3 products with the highest ratings for invoice processing
We selected products for this article based on their average ratings between March 2022 - March 2024, which may differ from their current overall average ratings.
Trial/Free Version
- Free Trial
- Free Version
Invoice processing feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Invoice processing feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Invoice processing feature rating
Device compatibility
3. Invoice history
The invoice history feature of a billing and invoicing solution enables businesses to record and track all historical invoices generated within the system. Users can track the invoice number, payment date, invoice amount, or any associated notes or comments. They can also use filters such as the client name, invoice number, or date range to search for specific invoice entries.
What business problem does invoice history solve?
Maintaining a record of past invoices is essential for businesses to track financial transactions. The invoice history feature eliminates manual record-keeping by providing a centralized repository to store all invoice data, preventing the need for paper-based filing systems or scattered digital documents. Additionally, by referencing past invoices, businesses can provide evidence of agreed-upon terms and quickly address discrepancies such as incorrect product quantities, prices, or taxes.
Ideal users of the invoice history feature
Accounting and finance teams can use the invoice history feature to track and manage all past invoices, reconcile accounts, generate financial reports, and facilitate audits. This feature also helps them monitor revenue trends, track customer payment behaviors, and analyze the effectiveness of billing strategies.
Top 3 products with the highest ratings for invoice history
We selected products for this article based on their average ratings between March 2022 - March 2024, which may differ from their current overall average ratings.
Trial/Free Version
- Free Trial
- Free Version
Invoice history feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Invoice history feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Invoice history feature rating
Device compatibility
4. Payment processing
The payment processing feature of a billing and invoicing solution enables businesses to collect customer payments securely. It supports various payment methods, including credit and debit cards, bank transfers, electronic wallets, and sometimes alternative payment options such as PayPal and cryptocurrencies. Additionally, this feature secures financial transactions by using measures such as encryption and transaction authorization to identify suspicious security patterns and protect sensitive payment information.
What business problem does payment processing solve?
Financial transactions involve the risk of fraud or data breaches. The payment processing feature incorporates robust security measures, such as encryption and tokenizationIdeal users of the payment processing feature
Accounting and finance teams can use this feature to provide customers with different payment options, such as credit and debit cards, bank transfers, and electronic wallets, improving customer satisfaction and increasing the likelihood of timely payments. This feature helps expedite payment collection, automate subscription billing, and manage recurring payments.
Top 3 products with the highest ratings for payment processing
We selected products for this article based on their average ratings between March 2022 - March 2024, which may differ from their current overall average ratings.
Trial/Free Version
- Free Trial
- Free Version
Payment processing feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Payment processing feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Payment processing feature rating
Device compatibility
5. Contact database
The contact database feature of billing and invoicing software lets businesses store and manage information about their clients, customers, vendors, and other contacts. It helps store details such as their names, addresses, phone numbers, email addresses, billing cycles, and plan details. This feature organizes contacts in a structured manner, allowing businesses to categorize them into different groups or segments based on criteria such as customer type, location, industry, or any custom parameter. A contact database typically includes security features, such as role-based access, encryption, and data backup measures, to safeguard contact details from unauthorized access or loss.
The contact database feature typically integrates with customer relationship management (CRM) software, allowing businesses to track individual contacts’ interactions, preferences, and histories. This integration helps tailor communication and services to meet each customer’s needs, improving customer satisfaction and loyalty.
What business problem does contact database solve?
Without a centralized contact database, there’s a risk of using outdated or inconsistent contact information, leading to communication errors, payment delays, and misunderstandings with clients or suppliers. By maintaining a single source of truth for contact information, the database helps ensure information is accurate and up to date.
Ideal users of the contact database feature
Customer account managers can leverage the contact database to access client information during sales interactions. They can use it to track client communications, check the status of invoices sent by the finance team, and maintain up-to-date contact records. This feature also helps them personalize sales pitches and identify cross-selling or upselling opportunities.
Top 3 products with the highest ratings for contact database
We selected products for this article based on their average ratings between March 2022 - March 2024, which may differ from their current overall average ratings.
Trial/Free Version
- Free Trial
- Free Version
Contact database feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version
Contact database feature rating
Device compatibility
Trial/Free Version
- Free Trial
- Free Version