Guide

Invoicing software for small businesses made easy

Easy to use invoicing software saves you time and reduces errors. See why simplicity matters for your business.

A small business owner using invoicing software on a laptop

Written by Lena Hanna—Trusted CPA Guidance on Accounting and Tax. Read Lena's full bio

Published Wednesday 5 November 2025

Table of contents

Key takeaways

• Implement invoicing software with online payment options to accelerate cash flow, as customers can pay instantly by credit card or bank transfer rather than waiting for cheque processing.

• Utilize mobile-friendly invoicing software to create and send professional, branded invoices from any device and location, enabling you to bill clients immediately upon job completion.

• Automate payment tracking and reminders through your invoicing software to eliminate manual follow-up tasks and maintain real-time visibility of payment statuses and outstanding amounts.

• Prioritize invoicing software that integrates directly with accounting systems to ensure payment data updates automatically and maintains accurate financial records without manual data entry.

Easy invoicing software creates professional results

Your invoice is often the last point of contact you have with a customer. Make a good impression with a professional, branded invoice. Easy-to-use invoicing software helps you create professional, branded invoices in minutes.

You can add your logo and customize the layout to reflect your business identity, building trust and making you look polished and established. The software handles the design, so you send consistent, professional invoices every time.

7 ways your business runs faster and smarter with online invoicing

  1. Time savings: Automation eliminates manual data entry, freeing up hours for business growth.
  2. Real-time cash flow: See updated payment status instantly whenever customers pay or view invoices.
  3. Faster payments: Customers pay online immediately instead of waiting for cheque processing.
  4. Mobile flexibility: Create professional, branded invoices from any device, anywhere, anytime.
  5. Automatic notifications: Get alerts when customers view or pay invoices, plus send payment reminders automatically.
  6. Customer transparency: You and your customers see the same invoice information simultaneously.
  7. Financial insights: Track total revenue and identify which customers owe the most money.

Invoice from anywhere with mobile-friendly software

In 2021, research showed nearly one-third of Canadians mostly worked from home. Your work doesn't always happen at a desk, and your invoicing shouldn't either. With mobile-friendly invoicing software, you have the freedom to run your business on the go.

Send an invoice from your phone the moment a job is done, check on payment statuses while you're out, and manage your cash flow from anywhere. This flexibility saves you time and helps you get paid faster.

Easy invoicing software gets you paid faster

Waiting for payments can strain your cash flow. The right invoicing software lets you get paid as soon as you send an invoice. Online payment options let your customers pay instantly by credit card or bank transfer.

Set up automatic payment reminders, so you do not have to follow up manually. These tools make it easier to collect payments and keep your cash flow steady.

Invoicing shouldn't be tedious or complicated

Complicated invoicing software creates unnecessary barriers between you and your money. Many small businesses find invoicing challenging because:

  • Manual data entry: Typing the same information multiple times wastes hours
  • Payment delays: Complex processes slow down when customers can pay you
  • Cash flow problems: Late payments mean you can't pay your own bills on time
  • Error-prone systems: Manual processes lead to mistakes that cost money

When you use easy online invoicing, you get paid faster. Create an invoice on the job and get paid sooner.

The trouble with traditional invoicing software

Traditional invoicing software problems

  • Payment delays: Manual processes mean customers pay late or forget entirely
  • Time-consuming steps: Manual data entry and printing waste valuable business hours
  • Limited customization: Generic templates don't reflect your professional brand
  • Poor visibility: You can't track invoice status or see what customers owe
  • Customer disconnect: You and your customers see different information at different times

Invoicing should be easy and seamless

Easy invoicing software eliminates manual steps and connects directly with your customers' systems. Here's how it works:

  • Instant payment options: Customers pay with one click instead of writing cheques or making bank transfers.
  • Real-time visibility: See exactly when customers open invoices and make payments.
  • Mobile accessibility: Create and send professional invoices from your phone or tablet, anywhere.
  • Direct integration: E-invoicing sends bills straight to your customer's accounting software for faster processing.
  • Automated tracking: The software updates payment status automatically, so you always know who owes what.

Online invoicing speeds up the flow of money and data

Real-time payment processing means money and information move simultaneously. When customers pay online, your accounting records update instantly.

Benefits for your business:

  • View invoice activity and payments immediately
  • Eliminate delays between receiving money and recording it
  • Maintain accurate financial records automatically

Benefits for your customers:

  • View current payment status anytime
  • View all outstanding invoices in one place
  • Pay securely with one click

This synchronization keeps you and your customers on the same page, improving relationships and cash flow.

Cloud computing has transformed small business accounting. In 2023, 97% of accounting professionals used technology to meet clients’ evolving needs.

FAQs pn invoicing software

Below are answers to common questions about invoicing software.

What is the best software for invoices?

Choose software that is easy to use, saves you time, and grows with your business. Look for features such as professional templates, mobile access, and online payment options to help you manage cash flow and get paid faster.

Is there a free invoice system?

Yes, some providers offer free invoicing plans for new or small businesses. As your business grows, you may need advanced features such as automatic reminders or multi-currency support, which are usually available in paid plans.

Can I create invoices in Word or Excel?

You can, but it is a manual process that takes time and can lead to errors. Dedicated invoicing software automates tasks, tracks payments, and gives you a real-time view of your finances. In fact, a 2023 survey found that 99% of accounting professionals want to use technology to dedicate more time to high-value work like consulting with clients.

Disclaimer

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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