Through lack of a dedicated accounting team, contractors and freelancers are generally required to personally manage their invoicing processes. Invoicing software helps to reduce this administrative burden by organizing and automating several accounting processes.
Invoicing software is used across a wide range of industries, meaning the exact features offered by these solutions can vary. Regardless, due to the minimized accounting needs of contractors and freelancers, many are offered as a lightweight solution that mainly focuses on enhancing invoicing processes.
As such, invoicing software for contractors and freelancers commonly features invoice generation, sending, and reporting functionality, as well as offering online payments support. Additionally, these solutions often enable users to track the time spent on tasks so that invoices can be more reliable and accurate at determining the actual amount of work that has been performed.
These solutions can also commonly be set up to send automatic payment reminders for overdue or upcoming invoices. Additionally, contractors and freelancers may also have the ability to utilize recurring invoicing for long-term clients.
Many invoicing solutions can also provide an API that facilitates integration with other systems. Common integrations include with accounting solutions that may not provide powerful or any invoicing capabilities, as well as with project management software for task time tracking.
Overall, invoicing software for contractors and freelancers can substantially help to free up time spent on calculating and creating invoices. These solutions also help to improve cash flows as well as minimize monetary losses by reducing the rate of late, missing, or incorrect payments.