There are many different ways you can make an invoice. In this article, we take a look at some of the most popular ways to make an invoice: Invoice generator vs. invoice software.
An invoice generator is an online tool that generates an invoice from a web form. You simply add the appropriate details and download the invoice as a PDF to send to your clients via email or in the mail.
Invoice software is a program made for invoicing. You log in via your browser or via an app, create the invoice, and send it to your clients directly from the invoice software.
Pros of using an invoice generator
There are many pros of using an invoice generator. Most importantly, they’re usually free to use.
Because the invoice on your screen looks exactly like the final product you download, they’re easy to use too. You just enter your details, the client’s details and information about the products or services you’ve sold.
There are many free invoice generators, so you can definitely find one that suits your needs. We’ve tested the top 10 free invoice generators on the market.
Cons of using an invoice generator
The downside of using an invoice generator, is that your invoices aren’t saved anywhere once you’ve sent them. If you send 10 invoices per month, you’ll have to store them in a folder on your laptop, or ideally in the cloud, so that they’re safe if your laptop breaks down or is stolen.
Then you’ll have to make a note of the due dates of each invoice, so that you can follow up with clients who don’t pay on time, which is very important in order to get paid quickly.
You also have to enter client and product information from scratch every time, it’s not saved in the invoice generator.
Also, imagine that you’ve made an error on an invoice: If you use an invoice generator, you have to manually make a credit note, also called a reverse invoice, to cancel out the invoice. You have to manually type in all the information and generate a PDF. With invoice software, credit notes can be made with the click of a button: the invoice software generates the credit note automatically, using the information on your invoice.
Pros of using invoice software
As you might see, there are many advantages to using invoice software. Invoice software is specifically made to make invoicing easier, which means you can create professional invoices with no prior knowledge.
Client details, product information, and your company details are all saved, so that you can make invoices quicker. The invoice software will also flag overdue invoices, so that you know which clients you need to reach out to.
Furthermore, all your invoices are safely stored for auditing and bookkeeping purposes.
Pro tip: Handle overdue invoices quickly
Did you know that 55% of all invoices in the US are paid late? Handling unpaid invoices is not as difficult as it may seem. Often, knowing where to start is a big problem. With the free invoicing software from Conta you’ll get notified about overdue invoices. We’ve also collected some tips for how to handle overdue invoices.
Cons of using invoice software
If you’re a freelancer or a small business owner, you might not have a lot of income or a reliable income stream. If that’s the case for you, you’re probably looking to save money where you can, and maybe you’re using Word or Excel to generate invoices.
Invoice software can be a costly investment, but that’s not always the case. The invoice software from Conta is completely free to use. Invoice software can also be complicated, but Conta is made to be easy to use, even if you’ve never invoiced before. This is what it looks like when you make an invoice in Conta:
You can also find tons of useful tips about invoicing and about running a business on our blog.
Invoice generator vs. invoice software: Which should you choose?
What you should use for invoicing depends on your needs: How much do you invoice? Do you need a way to store and track your invoices? Do you want to be notified when an invoice is overdue?
Generally, we recommend using invoice software if you’re going to send more than a couple of invoices. Keep in mind that invoice software does more of the work for you.
If you’re unsure, you can always try both before making a decision. Whatever you choose, Conta is here to help. Try our free invoice generator or sign up for free invoice software today!
