Manual invoice management is a time-consuming task. That time is much better spent elsewhere – and with invoice management software, it can be.
Invoice management software helps your business automate all things related to receiving and processing invoices. This eliminates the time-consuming and repetitive steps involved in manual invoice management, freeing up time and resources that can instead be focused towards more valuable tasks.
To unlock the full potential of invoice management software, however, it’s important to choose the right invoice management system for your business. We’re here to help you do just that.
In this article, we’ll cover what an invoice management system is. To help you choose the right software, we’ve also included an overview of 6 of the best invoice management systems on the market in 2024.
- What is an invoice management system?
- 6 top invoice management software solutions 2024
- What should you look for in an invoice management system?
What is an invoice management system?
An invoice management system is a software that helps extract, process, store and manage invoice data. As manual invoicing is a time-consuming process, invoice management software offers benefits for businesses of all sizes.
Key advantages of invoice management software include:
- Time savings: Invoice management software automates repetitive tasks in the invoicing process, such as scanning invoices, reading and pulling data into the system and transferring payments electronically, which saves time for both business owners and employees.
- Increased accuracy: Automation minimises the risk of human error, such as incorrect calculations or missing information, ensuring more accurate billing.
- Faster payment collection: Many invoice management systems offer online payment options. This helps expedite the payment process and reduce the time it takes to receive payments.
- Reduced invoice chasing: Tracking and reporting features enable businesses to monitor invoice statuses and identify unpaid invoices, helping to maintain healthy cash flow.
- Financial insights: Many invoice management systems include reporting and analytics tools that provide valuable insights into revenue, outstanding payments and other financial metrics.
Overall, invoice management software streamlines the invoicing process, improves efficiency and provides valuable data that enables businesses to make better, more informed decisions.
Want to learn more about invoice management?
Check out our article: ‘Everything your business needs to know about invoice management’
6 top invoice management software solutions 2024
Now that we’ve covered what an invoice management system is, let’s take a look at 6 of the best solutions on the market in 2024:
- Pleo
- FreshBooks
- Xero
- QuickBooks
- Wave
- Avaza
1. Pleo
With more than 1,480 five star reviews, Pleo is Europe’s most loved and trusted spend management platform. Among its products, Pleo offers an end-to-end invoice management solution to capture, process, approve, pay and bookkeep your invoices, all in one place.
Pleo’s invoice management solution saves you time on tedious tasks, automates approval processes and tracks invoices in real time. The solution simplifies invoice management for everyone – finance teams, bookkeepers and employees alike.
Best for | Pros | Cons | Pricing |
|---|---|---|---|
Startups, small businesses and larger businesses | User-friendly interface Real-time tracking and easy categorisation of expenses OCR technology for invoice scanning and automatic data population Seamless integration with business software | Cost linked to number of users Invoicing less comprehensive than focused solutions | Offers three pricing plans (Start, Growth and Scale) based on the number of users and the features included |
2. FreshBooks
FreshBooks is a cloud-based accounting software that also offers invoicing and billing features. If you’re already relying on FreshBooks for your accounting needs, this is a great bonus.
Popular with small businesses, freelancers and independent contractors, FreshBooks offers a good selection of useful features, invoice posting, automation features and time tracking.
Best for | Pros | Cons | Pricing |
|---|---|---|---|
Freelancers, independent contractors and small businesses | Not ideal for fast-growing businesses Complex pricing structure Advanced features limited or not available in lower-tier plans | Offers four different pricing plans and different payment options including monthly and (discounted) annual billing |
3. Xero
Xero is a cloud-based accounting solution that offers invoicing software for small businesses. Xero is particularly known for its robust features and ease of use.
Among other features, Xero enables you to easily post invoices, view invoice statuses and set up automatic payment reminders.
Best for | Pros | Cons | Pricing |
|---|---|---|---|
Small businesses | Cloud-based collaboration tools Integrates with a wide range of third-party apps Intuitive interface | Higher pricing than similar solutions Complexity for beginners Limited support for free users | Offers a free trial period for new users, three different pricing plans and payroll services as an add-on |
4. QuickBooks
QuickBooks is a well-known cloud-based accounting and invoicing software that caters to small businesses and accountants.
QuickBooks’ invoicing features include invoice posting, scheduled recurring invoices, and real-time invoice payment tracking.
Best for | Pros | Cons | Pricing |
|---|---|---|---|
Small businesses and accountants | Full suite of accounting and invoicing tools Versatile tool for managing finances Multi-currency support | More expensive than similar solutions Complex pricing structure Inconsistent customer service response times | Offers four different pricing plans based on the level of features and the size of the business, as well as add-on services such as payroll |
5. Wave
Wave is a popular bookkeeping and invoicing software that offers a range of financial tools designed for small businesses and freelancers, including invoicing management tools.
If you’re looking for a cost-effective invoicing solution with basic features and online payment options, Wave is a great option.
Best for | Pros | Cons | Pricing |
|---|---|---|---|
Freelancers and budding entrepreneurs | User-friendly interface No start-up or monthly fees Unlimited number of users | Limited scalability Limited customer support Lacks advanced automation features and integrations | Offers a free version, online payment options and payroll services |
6. Avaza
Avaza is an all-in-one project management platform that offers tools for online invoicing and recurring invoicing.
With its integration of project management and invoicing, Avaza is particularly suitable for small businesses managing multiple projects and clients.
Best for | Pros | Cons | Pricing |
|---|---|---|---|
Small businesses | Intuitive interface Project collaboration tools Good reporting and insight functionalities | Higher pricing than competitors Limited free plan; advanced features only available in higher tier plans Steep learning curve | Offers four different pricing plans based on the number of projects and team members, as well as different billing options |
What should you look for in an invoice management system?
There are many invoice management systems on the market – but not all solutions are the right fit for your business.
Regardless of the size of your business, it’s important to look for a tool that offers the following:
- Automation: To save time and streamline the invoicing process, the solution should include features like recurring invoices, automatic payment reminders and scheduled invoices.
- Invoice posting: To help you keep track of expenses, manage cash flow, and fulfil financial obligations to vendors in a timely manner, the solution should make it easy for you to post invoices in your accounting software.
- Invoice tracking: The tool should be able to track invoices in real time, show when an invoice has been viewed or paid and follow up on overdue payments.
- Ease of use: The less time it takes to onboard users to your new invoicing system, the better. Look for a solution that is intuitive and easy to use.
- Integrations: Look for an invoice management solution that integrates with your accounting software and other business tools. This helps create a seamless workflow and improve overall efficiency.
