Online billing software: send invoices, get paid faster

Published Thursday 16 April 2026

Table of contents

• What is online billing software?
• Benefits of online billing software
• Professional invoice templates
• Accept credit cards and other fast payment methods
• Mobile invoicing from your phone or tablet
• Automatic pricing and inventory tracking
• Create online invoices and eInvoices
• Simple quote-to-invoice conversion
• Invoice accounting and tax prep
• Automatic invoice reconciliation
• Flag outstanding invoices
• FAQs on online billing software

Key takeaways

• Automate your invoicing process with online billing software to cut manual data entry, reduce errors, and lower invoice processing costs from up to $30 down to less than $10 per invoice.
• Offer multiple payment options such as credit cards, direct debit, and digital wallets to speed up payment collection by up to 35% and improve your cash flow.
• Use mobile invoicing to create and send invoices from your phone or tablet on-site, so you can bill customers the moment a job is done rather than waiting until you're back at a desk.
• Choose billing software that integrates with your accounting tools to automatically reconcile payments, track outstanding invoices, and keep accurate records for the mandatory seven-year period.

What is online billing software?

Understanding what online billing software is and how it works is the first step to improving your invoicing process.

Online billing software is a cloud-based tool that helps you create, send, and track invoices from any device with internet access. It replaces manual invoicing methods like Word documents, Excel spreadsheets, or paper invoices, which is critical considering that of the 1.2 billion invoices exchanged in Australia annually, around 90 per cent of invoice processing is still partly or fully manual.

The basic workflow is straightforward:

1. Create an invoice using a template.
2. Send it to your customer electronically.
3. Receive payment through integrated payment options.
4. Record the transaction automatically in your accounts.

Unlike desktop software installed on one computer, cloud-based billing software stores your data securely online. You can access it from your laptop, phone, or tablet. Small businesses, freelancers, and service providers commonly use billing software to save time and get paid faster.

Benefits of online billing software

Switching from manual invoicing to billing software delivers measurable improvements to your business operations. Here's what you can expect:

• Save time: create invoices in minutes instead of manually formatting documents
• Get paid faster: offer multiple payment options and send automated reminders
• Reduce errors: eliminate manual data entry mistakes with automatic calculations
• Improve visibility: see outstanding invoices and cash flow in real time
• Look professional: use branded templates that build customer trust
• Simplify tax time: keep accurate records that sync with your accounting
• Work anywhere: access invoices from your phone, tablet, or laptop
• Scale easily: handle more invoices as your business grows without extra admin

These benefits add up. Businesses using billing software report spending less time on invoicing and receiving payments faster than those using manual methods, with eInvoicing reducing processing costs from up to $30 down to less than $10 per invoice.

Professional invoice templates

Professional invoice templates let you create branded, polished invoices that build customer trust while ensuring you automatically include the following seven details required by the ATO for sales under $1,000. Good billing software offers customisable templates that make your business look established and credible.

Look for software that lets you:

• Choose from ready-to-use designs that look professional
• Add your logo and brand colours in a few clicks
• Set standard payment terms that apply automatically
• Create invoices quickly without design skills

Accept credit cards and other fast payment methods

Getting paid quickly depends on making it easy for customers to pay.

Offering multiple payment options speeds up payment collection by up to 35%, improving your cash flow significantly. When customers can pay the way they prefer, they pay faster.

Modern billing software integrates with payment providers to offer:

• Credit and debit cards: Process payments instantly
• Direct debit: Automate recurring bank transfers
• Digital wallets: Accept PayPal, Stripe, and similar services
• Bank transfers: Support traditional payment methods

Most payment integrations are free to set up, with small transaction fees per payment.

Mobile invoicing from your phone or tablet

Working on the go is common for many small business owners.

Mobile invoicing lets you create and send invoices from your phone or tablet, wherever you are. You can finish a job on-site and send the invoice before you leave.

Choose billing software with a mobile app so you can:

• Open your invoice template on your phone
• Enter job details while they're fresh
• Send invoices straight away
• Check payment status on the go

This is especially useful for tradies, consultants, and anyone who works at client locations.

Automatic pricing and inventory tracking

Consistent pricing helps you avoid mistakes and save time.

Automatic pricing fills in your product or service prices as you add items to an invoice. This saves time and reduces errors from manual entry.

You can also connect invoicing to your inventory management. When you invoice an item, the software deducts it from your stock automatically. This keeps your records accurate without extra admin work.

Create online invoices and eInvoices

How you deliver invoices affects how quickly you get paid.

Digital invoice delivery replaces email attachments with faster, trackable methods. You can see when customers view your invoices and get paid sooner.

Two main delivery options are available:

• Online invoices: Send customers a secure link to view and pay invoices online, with read receipts showing when they've been viewed
• eInvoices: Deliver invoices directly into your customer's accounting software using the Peppol framework, Australia's government-adopted eInvoicing standard, for faster approval and payment

Simple quote-to-invoice conversion

Moving from quote to invoice shouldn't mean double handling.

Quote-to-invoice conversion turns accepted quotes into invoices automatically, saving you from re-entering the same information twice.

Here's how it works:

1. Create quotes using built-in templates.
2. Send quotes to customers for review.
3. Let customers accept with one click.
4. Convert accepted quotes to invoices automatically.

This streamlines your sales process and reduces the gap between closing a deal and getting paid.

Invoice accounting and tax prep

Integrated invoicing and accounting records your invoices automatically in your financial accounts, making it easier to securely keep financial records for the mandatory seven years. You don't need to enter the same data twice.

Your records update in real time when:

• you send an invoice
• a customer makes a payment
• an invoice becomes overdue

This gives you a complete, accurate record of your revenue.

Automatic invoice reconciliation

Matching payments to invoices can be time-consuming when done manually.

Automatic invoice reconciliation matches incoming payments with outstanding invoices without manual checking. Instead of comparing bank deposits to invoices yourself, the software does it for you.

The software:

• Connects to your bank account and monitors incoming payments
• Matches payments to the correct invoices automatically
• Updates payment status in real time
• Eliminates the need to cross-reference bank statements manually

Flag outstanding invoices

Knowing who owes you money helps you follow up at the right time.

Outstanding invoice tracking shows you exactly who owes you money and when payment is due. You get complete visibility over your accounts receivable without manual tracking.

The system automatically identifies:

• Upcoming due dates: Invoices approaching their payment deadline
• Overdue accounts: payments that have passed their due date
• Customer payment patterns: clients who consistently pay late
• Follow-up priorities: accounts that need immediate attention

FAQs on online billing software

Here are answers to common questions about online billing software.

What's the difference between online billing software and accounting software?

Online billing software focuses specifically on creating and sending invoices, while accounting software covers broader financial management including expenses, bank reconciliation, and financial reporting. Many modern accounting platforms like Xero include comprehensive billing features as part of their offering.

How secure is online billing software?

Reputable online billing software uses bank-level encryption to protect your data. Your information is stored in secure data centres with regular backups, often making it more secure than paper records or files stored on a single computer.

Can I use online billing software on my mobile device?

Yes, most online billing software offers mobile apps for iOS and Android devices. This lets you create and send invoices, check payment status, and manage your billing from anywhere.

How much does online billing software cost?

Pricing varies depending on features and the number of invoices you send. Many providers offer tiered pricing plans starting from around $15 to $30 per month. Some platforms include billing features in their broader accounting software packages.