Most of us would agree that your first office software has to be an accounting/billing software to start recording your income and expenses from day one. Ofcourse, it is utmost important to have the best invoicing software as the success of your business heavily relies on its feature-set.

Thus, we have listed how to choose the right invoicing software for your business and moreover, how time tracking and other features could immensely benefit your organization. Many refer it as time tracker apps, time billing software, business accounting software, online invoice generator, online invoice maker, but in simple words, there are many such invoicing apps available today. So the question remains of how to select the perfect one or on what basis to differentiate one from another.

Let’s dig deeper. Based on the latest 2018 invoicing trends and updates from the invoicing industry, the following are the important factors and approach to keep in mind while selecting a professional invoicing app for your business.

1) Online / Offline

Based on the customised business need, one should primarily decide on whether to go with online software or offline desktop solutions. Cloud-based invoicing presents more advantages over traditional offline software and programs. There are few exceptions such as a retail store, which focus more on speed rather than 24/7 online connectivity. Hence, for such businesses, an offline point of sale (POS) is more important.

The online invoicing software allows you to be up to date with reports & financial data even while you are away from the office. Moreover, cloud services provide backup and maintenance support with hassle-free sync option.

2) Data Security

With online accounting application, the most crucial aspect is the data security. One should opt with the services who use safe architecture, follows security protocol, ensures safe data transmission and encrypted servers. These are the quick hacks to check and prefer the online invoicing app as per your need. Also, make sure to check that the services are using an HTTPS connection.

3) Features

Features and functionality of the app is the one that gets you done with the task in hands, hence, make sure that the accounting package must consist of business-specific features. Some of them are as follows:

– Customise & create professional looking invoices
– In-built templates
– Categorise and track expense
– Stock management and inventory
– Create purchase orders & quickly convert them to estimates
– Manage taxes
– Manage customers & vendors list
– View account payable & receivables
– Import / Export & print
– Account statements

Add-on features could also include:

– Supports multiple currencies & payment methods
– Option to add multiple businesses
– Recurring invoices

4) Simplicity

Even though the above-mentioned features are important to have in invoicing app then also ensure that the accounting software isn’t clogged and yet simple for users to understand the working of it. Thus, opt for a software which is quick and easy enough to understand and has a simple user interface.

A clean and intuitive interface makes it easy to focus on the task and simultaneously reduces the time period of learning the app.

5) Scalable

Looking at the definitive features in the first go, some businesses are ought to ignore the big picture. The basic version of the billing software might seem fine initially but would it withstand with the growing need of your business? When the businesses start to grow and if the software isn’t able to cope then migrating all your data to another accounting software is a tedious and non-productive exercise for your business.

Thus, select an invoicing app that could be easily scalable with your business. Go for the invoicing services that offer an entry-level version with basic features and an option to upgrade to feature-rich version as per the need.

6) Multiple Device Data Compatibility

This factor plays an important role as it will help to sync and access data among multiple devices without any hassle. Your businesses would be benefitted with such feature as you can retrieve data even while you are on the go. In scenarios like operation shut down or lots of bugs after software purchase, such data export facility could also prove to be very handy.

7) Hidden Cost

Is the invoicing app free or there is a charge for support, maintenance and add-ons? Most of the invoicing apps are free to download and their basic version of the app also does not cost much. However, usually, all of them provide a trial period wherein you can download and get the feel of the invoicing app to let you make an informed decision about the invoicing product. Just make sure that there is no hidden cost associated and you are not obliged to the services. You can visit the pricing page of the company to get a quick review.

8) Support

This is very important as in a typical situation if you need assistance and if there isn’t any to talk to then not only your investment is gone but also you lost the real-time business. Even though the invoicing software is easy and simple to put to use, make sure to go with the accounting software that provides post-sale support.

Support might increase the cost, however, for many online invoicing service providers, support is a part of the basic package.

Moon Invoice is simple in User Interface, sober in features and sophisticated for all Small & Medium Enterprise and Businesses. Designed with the highly integrated intelligent system, get all the invoicing solutions with an app to have a hassle-free business operation.

Recurring Payments Vs Recurring Invoices

Recurring Payments	Recurring Invoices
Recurring payments charge the customer’s credit card account or debit card account on a predetermined schedule for the same amount as preapproved.	Send an invoice to your customer on a regular basis. The client receives the invoice but, money is not paid unless the customer approves.
A business that takes prepayment of money and sells a monthly subscription service and product. Subscription services are excellent examples of this.	A company that provides fixed services with billable hours is an excellent choice for recurring billing. For example law firms and consulting agencies.

Pros and Cons of Recurring Invoices

Pros	Cons
You eliminate the possibility of human error by automating the billing process. If you use a recurring invoice, you will not be concerned about forgetting to charge your customers for the things they ordered.	You must exercise caution while recurring billing to prevent issuing inaccurate pricing. This also holds for price changes that could take place right once an invoice is created.
If you provide your customers with the option for recurring billing, they are more likely to buy products regularly.	It could be difficult to cope with recurring invoices if a transaction fails for any reason.

Net 45	Invoice is due in full within 45 days with no early payment discount offered
2/10 net 45 terms	2% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/15 net 45 terms	1% discount if you pay within 15 days; otherwise full payment of the invoice is due in 45 days
1/10 net 45 terms	1% discount if you pay within 10 days; otherwise full payment of the invoice is due in 45 days
1/7 net 45 terms	1% discount if you pay within 7 days; otherwise full payment of the invoice is due in 45 days

Category	Net Method vs. Gross Method	Explanation
Calculation Approach	- Applies tax credits first; reduces taxable income before computing tax liability.	- Doesn't apply tax credits; computes taxable income without considering tax credits.
Tax Credit Eligibility	- Allows for greater likelihood of tax credit eligibility due to reduced taxable income.	- Limits tax credit eligibility because taxable income hasn't been reduced yet.
Itemized Deduction Requirement	- Lowers threshold requirement for itemizing deductions due to decreased taxable income.	- Raises threshold requirement for itemizing deductions due to higher taxable income.
Advantages	- Leads to lower taxable income and increases chances of meeting qualifications for other tax benefits.	- Results in higher taxable income compared to net method.
Disadvantages	- May miss opportunity to reduce tax burden if taxpayer doesn't itemize deductions or take advantage of tax credits.	- Increases taxable income and may result in higher overall tax bill.