7 factors to consider when choosing billing software

Choosing the best invoice or billing software for your needs is no easy task. There are many products available today, each with its own set of features, capabilities, and costs. Evaluating each product is tedious and time consuming. This article aims to simplify the process by listing the most essential factors that you cannot afford to overlook. By the end of this article, you’ll be well on your way to choosing the best billing software for your business or organization’s needs.

cost: This is a good place to start. Before evaluating any product, it is best to check its cost. Some products may be free, while others may be in the region of thousands of dollars aimed at larger companies. Some are based on subscriptions that need ongoing monthly or yearly payments that can also add up over the long term. If the cost of the product or service is way beyond your budget, you may want to move on to another product.

Sales taxNote: If you need to bill and collect any sales tax, GST, VAT, etc., please check that the product can handle this for you and meets the requirements of your local tax authority. Check that the invoice layout meets the requirements of your local tax authority. For example, are you required to show your tax identification number? Are you required to display the words “Tax Invoice” on all your invoices? Is the fiscal component clearly indicated on the invoice? Are different items on your bill taxed at different rates or is the tax applied only to the total?

The product then processes the relevant tax reports you need to help you prepare your tax returns to your Tax Authority. Although you normally submit summary values ​​on your return, your billing software should provide you with a breakdown or detailed report.

documents: In addition to invoices, are there other documents that I may need? For example, you may also want to prepare Quotes or Estimates. Being able to convert a Quote into an Invoice is also a great time saving feature. If you are a commercial company, you may need other business documents such as credit notes, delivery orders, packing lists, and supplier purchase orders. Finally, are these documents customizable to your needs or tastes? Can you add your logo or customize the look and color to look like your company stationery if needed?

Data: Does the product allow you to enter all the important information you need for your business? Check customers, vendors, contacts, invoices and documents, are all important fields taken care of? If you are a trading company, you may also need an inventory module. Can you import your data from an external source to save time entering your list manually? Can you export your customers, vendors, and inventory to an open file format if the need arises?

If your company provides services, does the product offer enough space for you to describe your services in the body of the Quote or Invoice? Do you need to indicate the customer’s purchase order number on your invoice? What about delivery instructions or payment instructions, terms and conditions, etc.?

Can you enter customer receipts? If the customer pays partial or multiple payments, can the product accommodate this?

Reports: Can you get the relevant reports of the product, such as sales, debtors, receipts, customer statements, etc.? Check that the reports are presented in a way that is useful to you. Customizable reports can also be very useful to you.

search functions: As your data accumulates and grows, you’ll need good search features to help you locate invoices, customers, inventory records, and more. This is one of the main reasons to use billing software in the first place.

Compatible with multiple usersNote: If you are going to have other users or staff to help you, the product must allow multiple users to access and update data at the same time. You would also like to restrict access to certain parts of the program or data. For example, you might not want some users to be able to delete invoices or customer records. You may not want them to see your sales reports or inventory cost price. The product you choose should have a mechanism that allows you to specify what other users can and cannot do.

The list here is not exhaustive, but it will help make sure you don’t miss out on some crucial factors. Take a moment to think about your specific business needs, hardware and software requirements, and add them to this list as you conduct your research and evaluation.

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