There are many ways to create an invoice. If you’re familiar with Excel, you might be thinking about doing your invoicing in Excel. Let’s take a look at what makes invoicing in Excel different from using invoicing software.
Invoicing is so important: It’s how you get paid for the work you do. There are many ways to make an invoice: invoice templates, invoicing software or an invoice generator. Some people even do it on pen and paper using invoice books.
Maybe you’re thinking about using Excel: Is invoicing in Excel better or worse than using invoicing software?
How to make an invoice in Excel
To make an invoice in Excel, you either have to make your own template—this is an invoice example you can use as inspiration—or download an Excel template. No matter which solution you go for, you should make sure that the template is set up to calculate sums for you, to reduce the risk of human error.
Then you fill out the fields to complete your invoice:
Once the invoice is done, you can export it as a PDF and send it to your clients, either via email or Whatsapp, or in the mail.
You’ll then have to store your PDF invoices somewhere safe, and have a system in place so you can see which invoices are overdue, in order to follow up on late payments. It’s a good idea to separate paid invoices from due and overdue invoices.
It also takes longer to fix an invoice mistake in Excel, than in invoicing software.
The pros of invoicing in Excel
As you can see, there are some drawbacks to using Excel for your invoicing, mainly that you need to do more manual work to create the invoice and to follow up on it to ensure that you’re paid.
But there are also some advantages to invoicing in Excel:
- It’s free. Unlike most invoicing software, Excel is completely free to use as long as you use it online. If you have a Mac, you can use Numbers to create the invoice, which works much the same way as Excel. There are some free invoicing softwares on the market though, if you want to give it a go.
- You can customize the invoice as much as you want. There are no limitations to what you can do to the invoice. But you’ll need to be a bit familiar with Excel, and spend some time setting up something that’s both professional and matches your brand, and of course, includes all the essentials.
- If you’re familiar with Excel, it might be quicker to use than invoicing software, unless you manage to find invoicing software that’s easy to use.
How to make an invoice with invoicing software
If you use invoicing software, you’ll be guided through the process of making an invoice.
Typically, it will look something like this:
Just enter your client details—or pull their information from the database if you’ve invoiced them before—and add what you sold and the tax rate. The total sum and the tax is worked out for you.
Once you’re happy with how the invoice looks, you can either send it directly from the invoicing software or download it as a PDF.
It’s as easy as that!
The pros of using invoice software
It’s faster to use invoicing software than Excel, you can also get more data about your invoicing history—and products, services, and clients are saved and can be reused easily in future.
In short, if you’re planning to invoice regularly, it’s definitely worth checking out invoicing software for these perks:
- Easy step-by-step invoice creation
- Send invoices directly from the software, either via email or Whatsapp
- Get notified about invoices that haven’t been paid by the due date
- Professional and print-friendly invoices
It doesn’t even have to cost a dime: We’ve tested the top 5 Quickbooks alternatives, both free and paid.
In conclusion: Invoicing in Excel versus invoicing software
You can do your invoicing in Excel: it’s free, customizable, and you might already be familiar with using it. However, Excel does have its limitations. It’ll take you longer to create an invoice, while with invoicing software you can do it in 2 minutes.
You’ll also have to be a lot more organized to follow up on your invoices. You don’t want to forget about payments and disrupt your cash flow.
With invoicing software, you can save a lot of time. Plus it can get you paid faster since you’ll be notified when a payment is overdue. Following up promptly, is actually one of 7 tips to get paid fast.
Another thing that will influence your decision is rules and regulations: In some countries, you’re required to use either invoicing software or prenumbered invoice books for your invoicing, so make sure to check if this applies to you.
The invoicing software from Conta is completely free to use. Why not give it a try before you make up your mind?
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