Billing System: What It Is, How to Set Up, and Top Software

Some of the invoicing software options are overcomplicated (i.e., full accounting software) or overpriced. Strong invoicing software for small businesses allows you to create and bill your customers directly. statement of comprehensive income – overview We’ve identified eight of the best invoicing software options to help you find the right fit for your business. When creating an invoice, it’s up to you to set a payment due date, along with any late fees.

Tracking billable hours through a dedicated app is a more sensible solution. A 2023 time tracking study suggests that companies using software with timekeeping features were 44% less likely to commit payroll slip-ups. According to invoicing statistics by Skynova, almost two-thirds of late payments can be traced back to inaccuracies in the invoicing process.

BILL Pricing

In addition, BILL recently acquired Divvy and now offers BILL Spend & Expense with unlimited virtual cards making it a well-rounded income and expense management business suite. Square charges a transaction fee of 2.9% + $0.30 per invoice (or 3.5% + $0.15 for cards on file). Square’s interface is extremely simple, making it easy (and affordable) to take invoice payments with Square.

1. Read on to see the five required steps to getting paid promptly from your clients.
2. Use over 100 pre-built options or create your own automations for actions like status updates, due date reminders, and billing follow-ups.
3. Depending on your invoicing system, you may be able to automate payment reminders to notify your clients that the due date is approaching or passed if they haven’t made payment.
4. Designed to protect independent contractors from late or non-payment, it can offer relief in the form of court-ordered payments, along with extra penalties relief.

For the invoices to be accurate, you need a reliable time tracker to record everyday tasks, projects, and meetings. In order to successfully have your invoice completed in Copilot, you need to connect your bank account. This way, your clients can pay you directly when they receive your invoice via email. Finding the right payment processor that can integrate into your system is important. It’s best to accept as many payment methods as you can, for customer convenience.

This will of course lower your take-home pay, but it can help improve your client’s experience working with you. In order to successfully have your invoice completed within Copilot, you need to connect your bank account. This way, your clients can pay you directly right when they receive your invoice via email. Having the right billing software goes a long way toward creating a smooth billing process. When your processes are efficient, it’s easy to maintain healthy working relationships with your clients. However, it’s important that you aren’t afraid to follow up with your clients when they miss payments.

How to bill a client: An easy agency guide to more convenient payments

It is recommended that you use billing codes to categorize your products, track your money, identify services, and track business finances. You can use business codes in reporting to monitor how your business spends resources and time and ensure ongoing profitability. Work tools to elevate your productivity – apps for incredibly simple time tracking and effective project planning. If a client pays late or misses payments on multiple occasions, it will begin to affect your business and bottom line. You may need legal action if all communication and recovery attempts have failed. Toggl Track’s invoicing features automatically populate the invoice with data from your time report.

Set up clear expectations with a written contract

If nothing else, a simple email where you both type out “I agree” in response to the payment terms is sufficient. While QuickBooks Online does have invoicing tools, it isn’t actually invoicing software. It is full accounting software that comes loaded with features you won’t find in invoicing software — features you might not even need. Sending invoices with PayPal is free with your PayPal account (PayPal accounts are also free to sign up for). The Free plan includes access to all features and allows one user to manage up to two projects. If you need additional users or projects, you can sign up for Harvest Pro, which costs $12/month per seat.

If you don’t live in New York, you may want to check with your state attorney general about what options are available to you. If your contract is missing an important component needed to promptly bill, you’ll need to go back to the total variable cost client now – before your first invoice – and get clarification. Ideally, it would be good to have these new details in writing via a contract addendum or new legal agreement.

Don’t shy away from following up after missed payments

Ideally, you have a platform that acts as your control center for your entire service business. A platform that can not only handle payments, but can also do things like client onboarding, client reporting, and contract creation — all in a centralized what is the accounting equation and how do you calculate it client portal. It is best to have your invoices get paid directly to your bank account, which is why Copilot lets you connect your banking details directly on the platform. Often, we get excited about getting paid that we may overlook the small details.