Using online billing software: Send invoices and get paid faster

Published Wednesday 5 November 2025

Table of contents

• Beautiful invoice templates
• Accept credit cards and other fast payment methods
• Mobile invoicing from your phone or tablet
• Learn your prices
• Create online invoices and eInvoices
• Simple quote-to-invoice conversion
• Invoice accounting and tax prep
• Automatic invoice reconciliation
• Flag outstanding invoices
• Send automatic invoice reminders
• Help you forecast cash flow
• Support other debtor management systems
• What to look for in online billing software
• Online invoicing with Xero
• FAQs on online billing software

Key takeaways

• Online billing software automates invoicing and payment processes, saving you time and reducing errors.
• Features like mobile invoicing, payment reminders, and integration with accounting tools help you get paid faster.
• Choosing the right software means looking for features that match your business needs and support your growth.
• Xero offers intuitive online invoicing to help you manage your business finances more efficiently.

Beautiful invoice templates

Professional invoice templates help you create branded, polished invoices that build customer trust. Good billing software offers:

• choose from ready-to-use templates that look professional
• add your logo and brand colours easily
• set up standard payment terms automatically
• create invoices quickly without design work

Accept credit cards and other fast payment methods

Multiple payment options can speed up payment collection by up to 35%, improving your cash flow significantly.

Modern billing software integrates with payment providers to offer:

• Credit and debit cards: Instant payment processing
• Direct debit: Automated bank transfers
• Digital wallets: PayPal, Stripe, and similar services
• Bank transfers: Traditional payment methods

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

Mobile invoicing from your phone or tablet

Send invoices as soon as you finish a job. Choose billing software with a mobile app so you can open your invoice template on your phone, enter the details, and send it straight away.

Learn your prices

Let the software fill in prices automatically as you add items to your invoice. You can also set it up to deduct sold items from your inventory.

Create online invoices and eInvoices

Digital invoice delivery replaces email attachments with more efficient methods that improve tracking and payment speed:

• Online invoices: Send customers a secure link to view invoices online, with read receipts showing when they've been viewed
• : Automatically deliver invoices directly into your customer's accounting software for faster approval and payment using the government-adopted Peppol framework, which serves as Australia's common einvoicing standard.

Simple quote-to-invoice conversion

Get online billing software that comes with quote templates. Let customers accept quotes with one click. Convert accepted quotes to invoices automatically.

Invoice accounting and tax prep

When you use invoicing and accounting software together, your invoices are recorded automatically. Your records update when payments are made, so you have a complete record of your revenue. This helps you meet legal requirements to keep financial records for at least seven years.

Automatic invoice reconciliation

Automatic invoice reconciliation matches incoming payments with outstanding invoices without manual checking. Instead of manually comparing bank deposits to invoices, the software:

• connect to your bank account to monitor incoming payments automatically
• match payments to invoices to identify which invoices have been paid
• update payment status to show settled and outstanding accounts in real time
• remove manual work by eliminating the need to cross-reference bank statements

Flag outstanding invoices

Outstanding invoice tracking gives you complete visibility over money owed to your business. The system automatically identifies:

• Upcoming due dates: Invoices approaching their payment deadline
• Overdue accounts: Payments that are past their due date
• Customer payment patterns: Which clients consistently pay late
• Follow-up priorities: Accounts that need immediate attention

Send automatic invoice reminders

Chasing payments can take up your valuable time. Nearly half of invoices go past due, so sending a polite reminder is often the best way to get paid, especially with 1.2 billion invoices generated in Australia each year.

Smart billing software can take the job off your hands. Because it's running your invoice reconciliation, it knows which invoices are unpaid. When an unpaid invoice comes due, or goes past due, the system can send a pre-written reminder email for you.

Help you forecast cash flow

Cash flow forecasting uses your outstanding invoices to predict future income and identify potential cash shortages.

Billing software helps you forecast by tracking:

• Money owed: Total outstanding invoice amounts
• Payment due dates: When you can expect payments
• Historical payment patterns: Average time customers take to pay
• Upcoming expenses: Integration with accounting shows outgoing costs

Visual reporting through graphs and charts helps you spot cash flow trends early. See how cash flow forecasting works.

Support other debtor management systems

You may have customers who pay late for different reasons. Managing these accounts well helps you keep your cash flow healthy.

You can use credit control software like Chaser or Debtor Daddy to manage overdue accounts. Check that your invoicing software works with these tools. For example, Xero's Australian marketplace offers about 700 apps for different industries.

What to look for in online billing software

Choosing the right billing software requires evaluating features that match your business needs and workflows.

• accept multiple payment options for faster collection
• create and manage invoices on any device
• integrate with your accounting software for seamless data flow
• automate recurring invoices, payment reminders, and reconciliation
• customise templates to reflect your brand
• track cash flow and payments with reporting tools
• review your current process to find time-consuming manual tasks
• plan for growth to ensure the software scales with your business
• test integration options for compatibility with your existing tools
• ask your accountant for advice on financial workflow integration

Online invoicing with Xero

Use Xero online accounting software to send invoices, set up automated reminders, and manage your invoicing from your desktop or mobile app. Handle your invoicing when it suits you and your business.

Find out how to send invoices with Xero online accounting software

FAQs on online billing software

Find answers to common questions about online billing software below.

What is the main purpose of billing software?

The main purpose is to automate and streamline the process of creating, sending, and tracking invoices. It helps you get paid faster, reduces administrative work, and gives you a clearer picture of your income.

Is online billing software secure?

Yes, reputable online billing software uses cloud-based security measures, including data encryption, to keep your financial information and your customers' details safe. It's often more secure than storing paper records or files on a single computer, and the ATO has calculated that up to A$28 billion can be saved over 10 years through the widespread use of such systems.

Can I use billing software on my phone?

Most modern billing software platforms, like Xero, offer a mobile app. This lets you create and send invoices, check payment statuses, and manage your finances on the go, right from your phone or tablet.