A business, no matter how small or large, suffers from many challenges!
Managing invoices becomes a huge challenge sometimes, especially when doing it manually.
Late payments are another major issue associated with improper invoicing. This leads to a decrease in cash flow, which can result in the business being shut down completely in some cases.
According to the Federation of Small Businesses (FSB), late payments result in 50,000 business closures yearly.
But as the saying goes, “every challenge has a solution.” There’s a solution to manual invoicing, too.
That’s where an online invoicing software lands!
Although various invoicing tools are used across the United Kingdom, only the right tool can make a difference.
It can
- Simplify billing
- Track payments
- Help stay organized
- Save time
- Reduce errors
- Boost cash flow
So, let’s learn a little bit about the features you should look for in invoicing software, and then we will discuss the top 7 invoice software in the UK.
What to Look for In An Invoicing Software
Choosing the right invoicing software for small businesses in the UK isn’t just about finding a tool that sends bills—it’s about solving everyday problems like tracking payments, reducing errors, and saving time. Here’s what you should consider:
- Ease of Use: Your software should feel intuitive. If it takes hours to figure out, it’s not worth the hassle. Look for a solution with a clean design and straightforward navigation.
- Customization Options: Every business is unique, so your invoices should reflect that. Choose software that lets you add logos, payment terms, and other custom details.
- Automation Features: From recurring invoices to payment reminders, automation saves time and ensures nothing slips through the cracks.
- Multi-Currency Support: If you deal with international clients, this feature is a must-have to handle different currencies and exchange rates.
- Integrations: Your invoicing tool should connect seamlessly with accounting, payment, and CRM systems to streamline operations.
- Affordability: Make sure the software fits your budget without sacrificing key features. Free trials or demos can help you test before committing.
These features simplify invoicing and improve cash flow, letting you focus on what matters—growing your business.
Top Invoicing Software in the United Kingdom
1. Quickbooks
QuickBooks is an accurate invoicing and financial management software suitable for any organization in the United Kingdom.
It reduces the intricacies involved in managing your financial affairs such as billing, expenses and payrolls so that you can concentrate on building your business.
Features
Automated Invoicing
It is easy to prepare and send your invoices through QuickBooks with features such as pre-filled form options and payment due notices.
Customizable Invoices
You can also upload your company’s logo, selected brand colors, and additional notes to make your invoices look unique.
Real-Time Alerts
Receive configurable instant notifications whenever your clients open, approve or pay the invoices issued. It informs you at all times and allows no payment due date to pass unnoticed.
Progress Invoicing
By using progress invoicing, you enable clients to split payment to percentages of project completion or stages and thus manage cash flow during lengthy projects.
Payment Processing
QuickBooks, for instance, accepts credit cards, ACH, Apple Pay, PayPal, and Venmo, enabling clients to pay you directly.
Expense Tracking and Reporting
Ensure you can automatically record expenses, classify transactions, and create clear statements to follow the fiscal and financial year rules.
Mobile App Access
QuickBooks has a mobile app allowing users to manage invoices, payments, and reports anytime and from anywhere.
What’s Best?
Progress Invoicing: Break down payments into milestones or percentages to manage cash flow effectively during projects.
Pricing
QuickBooks plans in the UK start at £5/month for the first 6 months, and after that it costs £10/month. The highest plan is for £10/month.
2. Invoicera
Invoicera is an online invoicing and payment solution that enables businesses to create professional invoices, monitor invoices, and manage recurring bills.
Features
Recurring Billing
To save time, you can set up recurring invoices for subscriptions and contracts. This way, your payments will always be on schedule.
Automated Payment Reminders
Bid farewell to constantly running after late-paying clients. Scheduling follow-up reminders helps clients to make timely payments and stay on schedule.
Detailed Reporting and Analytics
You can easily access important revenue, expenditure, and accounts receivable information to run your business effectively.
Master Global Payments
With Invoicera, it’s easy to process payments across borders, ensuring that you do not experience any issues with your clients.
Multi-Currency Support
You can receive and transfer payments in different currencies, allowing you to serve clients worldwide.
Automated Tax Compliance
You no longer have to worry about manually calculating tax amounts. Leave your taxes to the software to compute based on regional laws.
Late Payment Fees Automation
Charge late fees on past-due balances to prevent additional revenue losses.
Estimates and Proposals in One Click
You can instantly make professional estimates to impress clients, which are suitable for the fast approval of contracts.
Manage Purchases with Purchase Orders
Track and organize the purchase orders efficiently to manage procurement.
Custom Third-Party Integrations
You can also extend the use of Invoicera by quickly integrating it with other software for an efficient invoicing process.
Real-Time Payment Tracking
Keep track of payments to ensure effective cash control and exclude any payments that may cause controversy.
Multiple Payment Gateways
All the payments from clients are smooth and secure with Invoicera.
Easy Customer Portal Access
For better customer satisfaction, provide clients with online access to their invoices and payment records.
What’s Best?
Custom integrations with any third-party software
Pricing
Invoicera starts at £11.75 per month with a free trial and demo to help you get started.
3. FreshBooks
FreshBooks is another invoicing software for small businesses in the UK, self-employed individuals, and contractors to create high-quality invoices, track their expenses, and manage their accounts receivable and payable.
Features
Create Stunning Invoices
Quickly add your logo, payment details, and a message to your invoices with little effort at all.
Automate Your Workflow
Always remember to automate things like sending invoices and following up on payments so that no time is wasted and nothing is missed.
Accept Payments Online
FreshBooks allows your clients to pay online via credit card or ACH, which gives your clients several favorable options to pay.
Track Time and Expenses
Record your working hours and expenses and make sure that you are charging accurately on your invoices to avoid gaps.
Seamless Integration
Expand FreshBooks further by integrating it with other company tools like the Project Management and Accounting platforms.
Mobile-Friendly Access
FreshBooks supports the mobile application, which enables users to create and send invoices and monitor payments on the go.
What’s Best?
Pricing
FreshBooks begins at £7.50 monthly with an ongoing offering of 50% off the scale to new customers for your initial 3 months.
4. Xero
Xero is the next tool on the list. It’s the best invoicing software for small businesses in the UK. Organized and up-to-date, Xero offers a user-friendly interface for managing a business’s financial aspects and automating complex processes.
Features
Customizable Invoices
Customize your invoices by adding your company logo, payment terms, and anything else that might be important. The end result is professional-looking invoices.
Multiple Payment Options
Provide customers with flexibility on payment options and accept both debit/credit cards and direct debits.
Automatic Payment Reminders
Xero automatically notifies clients about upcoming and overdue payments, making it easier to get paid on time.
Mobile Invoicing
The Xero mobile app allows users to create invoices, follow up on payments, and manage clients on the go from their office or any other location.
Repeat Invoices & Bulk Imports
Set up recurring invoices to save time on repetitive billing tasks and import bulk invoices from other platforms to simplify the transition to Xero.
What’s Best?
Customizable invoices and recurring billing
Pricing
Xero has a Starter pack of £2.90 per month for the first six months making it ideal for small businesses.
5. Square Invoices
Square Invoices makes billing seamless by offering easy-to-use tools that help you get paid quickly. Whether it’s offering flexible payment options or setting up recurring payments, Square ensures your business stays organized and efficient.
Features
Flexible Payment Options
You can offer various payment methods to your clients, making it easier for them to pay how they prefer. You can also track every payment in real-time.
Customizable Invoices
Customize invoices, change the format of invoices, logo, and the use of brand colors on the invoices.
Live Invoice Tracking
Monitor your invoices at any time and find out which of them are paid, unpaid, or overdue to be mindful of your cash flow.
Recurring Billing
Set up recurring billing with ease, offering daily, weekly, monthly, or yearly payment schedules that suit both your client’s preferences and your business needs.
Secure Deposits
Collect upfront payments to secure client commitments, with the option to set separate deadlines for the remaining balance.
Custom Fields
Add custom fields to your invoices for important details, such as policies and notes, which can improve transparency and strengthen trust with clients.
What’s Best?
Flexible payment options and live tracking
Pricing
£29+/month, plus processing fees.
6. Zoho Invoice
Zoho Invoice is a simple yet powerful invoicing solution for small businesses, freelancers, and consultants. It provides customization functionality, intelligent invoice management, and multiple delivery modes which help deliver invoices on time.
Features
Create Stunning, Customizable Invoices
Brand each invoice to match the style of your business, from your logo to the colors and design of the invoice.
Multiple Delivery Options
Send invoices through email, WhatsApp, SMS, or as PDFs. This flexibility means your invoices will always reach your clients in the most convenient format for them.
Automate Recurring Invoices
Eliminate manual recurring invoicing and reduce time wasted in chasing payments and missed rent deadlines.
Smart Invoice Management
Get the latest status on your invoices with real-time tracking. The informative filters enable users to search invoices by date, number, and payment status.
What’s Best?
Customizable templates and multiple delivery options
Pricing
Free for UK users
7. BigTime
BigTime ensures that each billable hour turns into increased revenue with ease. This invoicing tool also helps to easily convert tracked hours to professional invoices to ensure you get paid for each minute worked.
Features
Smart Invoice Generation
Easily create professional invoices from the time and expenses you have logged. As previously mentioned, BigTime has options for multiple billing methods to ensure proper billing .
Professional Invoice Templates
Choose from templates that reflect your brand’s professionalism. They are simple yet effective, ensuring clarity and leaving a strong impression on clients.
Multi-Level Review System
BigTime’s built-in review process ensures that every invoice is checked before being sent out, maintaining quality control and reducing errors.
Accounting Software Integration
BigTime integrates with your existing accounting tools, streamlining the accounts receivable workflow. This means less friction between your invoicing and financial systems.
Customizable A/R Dashboard
Get a comprehensive overview of your accounts receivable with BigTime’s customizable dashboard, making it easy to monitor and track your financial health.
What’s Best?
Time tracking and invoicing
Pricing
US$20.00/month.
How Automation Boosts Business Revenue
Automation is no longer just about saving time; it is about generating more revenue. Here’s how it helps businesses grow:
- Faster Payments: Automated reminders nudge clients to pay on time. This cuts down on late payments and the fluctuation of your cash flow.
- Minimized Errors: The traditional way of invoicing is prone to human error such as incorrect billing, sending the invoice at the wrong time or not sending it at all. Automation ensures accuracy, saving you from costly corrections.
- More Time for Growth: By handling repetitive tasks, automation frees up your team to focus on winning new clients or expanding services.
- Improved Client Relationships: Accurate and timely invoices convey professionalism to the clients, creating a positive impression of your business.
- Actionable Insights: Another advantage of automated invoicing applications is that you are able to analyze payments and come up with better business solutions.
Conclusion
Selecting the right invoicing software for your business can be key to improving its functioning in the UK.
Good invoicing software is not just about billing but timely collection of your dues, managing your money and making processes convenient. With features like automatic reminders, custom templates, and online payments, these tools can save you time and help you look more professional.
Choosing QuickBooks due to its progress invoicing or choosing Invoicera for its custom integrations or any tool from the list, it is important to make sure you select the one that suits your requirements and cost controls.
Try out the free trials of this software and look for the one that suits you better.
FAQs
Ques. Can I use these tools if I own more than one business?
Ans. Yes, but each tool handles this differently. Some like Invoicera and QuickBooks let you run multiple businesses from one account (usually in more expensive plans), while others might need you to pay for separate accounts for each business.
Ques. Are these tools safe for storing customer information?
Ans. Yes, all these tools follow UK data protection laws. They keep your customers’ information safe and let you handle data requests properly. Just remember that you still need to be careful about how you use customer information in the system.
Ques. What happens to my information if I want to change to a different tool?
Ans. Most tools let you save your data in simple file formats like Excel. You can move basic info like customer details and old invoices. However, you might need to redo some of your custom settings in the new system. It’s best to switch when starting a new business year.
