If you’re thinking of starting a business or a freelance venture, one important thing to consider is how you will create invoices to bill your customers and clients. There are many invoicing tools out there. However, they can get pricey and are often more advanced than what small business owners or self-employed freelancers need. Enter free invoice software.
As an immigrant, Remitly is here to support you with the necessary information to start your business and manage your finances in the US. Through this guide, we’ll outline what you need to know about invoicing, plus the different free invoice apps at your disposal to optimize this vital part of your business at no extra cost.
Why use invoicing tools for small businesses?
Billing software is essential for managing day-to-day transactions in any small or medium-sized business. They handle tasks like preparing and sending professional-looking invoices, following up on payments, and even collecting amounts owed on time. The best ones include more specialized add-ons, such as project management, expense tracking, and much more.
Benefits of using free invoicing software
Free invoicing tools can be beneficial in several ways:
- Speed: With a few clicks, free invoicing software can complete tasks that used to take hours for each transaction.
- Functionality: These easy-to-use free invoice apps are also great for managing all kinds of data. From customer profiles and purchase history to your business’s sales and income, these tools can keep track of it all.
- Accuracy: Using invoicing software means you’re less likely to make errors that can cost time and money to undo.
- Efficiency: Today’s free software often include time-saving features that allow clients to make payments right from the invoice itself. This means your customers are more likely to pay you faster, giving you better control over your small business’ cash flow.
- Auto-reminders: If payments aren’t made on time, many apps send automatic payment reminders to gently nudge your clients about outstanding invoices.
Key features to look for in an invoicing tool
Free invoice apps will lack some integration with bookkeeping software or other more powerful tools. But for most budding entrepreneurs, those features won’t become important until your business grows a little more.
That said, here are some key features to keep an eye out for when choosing free software to get you started:
- The ability to save the information for a large number of customers
- Invoice template creation and customization
- Automated payment reminders, support for e-signatures, and acceptance of online payments
- A dashboard for tracking invoice status
Depending on your business growth plan, you might also want to check out what features the paid tiers of your preferred free invoicing app offer. These may include broader integration with your accounting software, employee time tracking, or interfacing with your favorite e-commerce site.
Top 5 free invoicing software solutions
Since we understand what we should be looking for in a good free invoicing software, here are five of our picks for excellent software to get your invoices sent out today.
Wave: simplifying invoicing for freelancers
As an all-in-one tool, Wave is a great, user-friendly option to get your freelance business moving. While it doesn’t integrate with third-party bookkeeping software, it does include some solid accounting tools of its own. It also offers wonderfully customizable invoice templates, as well as the ability to accept online payments through credit cards, bank transfers, and Apple Pay.
Wave has a mobile app that lets you create invoices on the go, plus an easy-to-read dashboard for all of your invoices. The paid tier allows access to automated payment reminders, but it might have some trouble scaling if your business grows beyond a few employees.
Invoice Ninja: customization and features galore
Invoice Ninja is a no-cost, easy-to-use, free invoicing tool designed specifically for small businesses. The free plan has a lot to offer, such as:
- Invoice templates to help your business get started on the right foot. However, they may be less customizable than other options.
- The software provides over a dozen different payment gateways through its online payment service, meeting the unique needs of different businesses.
- It doesn’t integrate with other bookkeeping software.
Invoice Ninja is great for small businesses that are just starting out, but the free account is limited to a maximum of five client profiles. Luckily, this tool can easily scale up with your business growth: its first-tier paid plan costs only $10 USD per month.
Zoho Invoice: professional invoicing made easy
Zoho Invoice has made a name for itself as another very well-rounded invoicing option. Even at its free tier, this cloud-based billing software offers automated payment reminders and integration with Quickbooks to keep your accounting up to date. It also supports the most common payment gateways and mobile apps for Android and iOS.
Its main limitation is that while you can send unlimited invoices, you can only activate five customer profiles at a time. If you grow beyond that, you’ll need to speak with the Zoho team about pricing or look for another option.
PayPal Invoicing: easy payments
With a PayPal for Business account, you can easily access its invoicing features right from the app. This is a great option that provides convenient, secure payment options.
While this isn’t the most customizable invoicing tool out there, it has no limitations on the number of clients you can add or invoices sent. It also sets automated payment reminders.
Square Invoices: all-in-one solution
Square Invoices works with a wide variety of payment gateways and allows for both in-person and online payment. It also supports an unlimited number of clients and invoices, as well as automated payment reminders and recurring invoices.
Similar to PayPal, Square works best if you’re well-integrated with their other products. But their invoicing software is still a powerful tool, even with the free plan.
Invoice templates: customizing for your business needs
Whether free or not, most invoicing software will let you create and save personalized invoice templates. These can be helpful in not only streamlining the entire billing process, but also boosting your small business’s image and brand.
Importance of professional invoices
Invoices are one of the most important documents that your clients will receive from you. They may also be the last, so leaving a positive, lasting impression with them can go a long way to attracting repeat customers.
In the long run, a well-designed invoice helps you build your brand image and professional reputation. The consistent and clear design shows your clients you mean business.
Clear and consistent templates also boost Optical Character Recognition (OCR) efficiency and accuracy. This makes it easier to read and process invoices, meaning less work for clients down the line, like during tax season or audits.
Using templates to streamline invoicing
Having a range of templates ready to go ensures you can quickly and easily create the right invoice for your needs. With invoicing software, you can insert customer data and order information into a template and send the invoice out in a matter of minutes.
When it comes to design, consider the details:
- Create a template that features your business logo clearly and prominently.
- Ensure it also matches the color scheme of your brand,
- Use fonts that match your brand identity, but remember, less is more.
Study the invoices you send most commonly and identify the parts that don’t change to build the most effective template.
Managing payments efficiently
After sending your latest invoice using your template, the next step is to ensure your customers actually pay you. For your small business, choose invoicing software that automates payment reminders and supports online payments. The idea is that by making payments more convenient through money transfer services like Remitly, you will complete transactions faster and hassle-free.
Online payments and payment gateways
Most invoicing software includes some kind of online payment system, which makes it easy for your clients to pay you for your services. Your invoicing software can set up and facilitate these payments, but they will have to pass through a payment gateway to get to you.
Payment gateways are programs that collect and encrypt transaction data and send it to payment processing. They facilitate the movement of money from your customer’s bank to yours. This movement can happen either directly from bank to bank or through a card network.
Online payments and the payment gateways that facilitate them are an integral part of the billing process. They make it much easier for your customers to pay you, meaning you receive your money faster.
Automating payment reminders
Free or not, the best invoicing software should also track the status of the invoices you send. With this data, these tools will facilitate automated payment reminders. You can customize these messages depending on how close—or how far past—the due date is. Additionally, you don’t have to keep track of each invoice’s due date or contact clients individually, saving you time and energy.
Enhancing productivity with invoicing apps
As we’ve seen, invoicing software is incredibly useful for small business owners and freelancers. The free versions are often more than enough when you’re still getting started; however, you can gain another productivity boost using mobile apps and integration with other business software.
Benefits of mobile invoicing apps
Downloading mobile apps for these free invoicing software platforms provides several benefits, including the following:
- Gain 24/7 access to all your order and invoicing information.
- Create and send an invoice fast, from anywhere in the world.
- Allow clients to make payments securely and conveniently at any time.
- Manage your invoices and payments from the comfort of your tablet or smartphone.
- Send estimates for future jobs in no time—and watch your business grow.
Integrations with accounting and workflow tools
Another helpful feature of some invoicing tools is a seamless integration with your billing and workflow tools. Direct integration with accounting software means that you can track your income and expenses more easily. You can also prepare for tax season faster without the extra step of migrating data between the systems.
Similarly, integration with your preferred workflow tools means that you’re always up-to-date on the status of your projects. This streamlines operations and takes one more task off of your plate.
FAQs
What is the best free invoicing tool for small businesses?
There are many invoicing software on the market, each providing a wide range of features across free and paid tiers. The best option will depend on your business needs; however, you can consider options like Wave, Zoho, and Invoice Ninja.
How can I create an e-invoice for free?
An e-invoice is created electronically and sent to a client by email, unlike physical paper invoices, which are sent through the post office. E-invoices can be created and sent to your clients through free invoicing software such as Wave, Invoice Ninja, or Zoho.
How do I create an invoice for a small business for free?
Small business invoices can be made manually using programs like word processors or spreadsheets. However, the most efficient method is typically through free invoicing tools like Zoho Invoicing, Wave, Invoice Ninja, and more.