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Introduction
Creating professional invoices shouldn't consume hours of your week. Invoice software automates invoice creation, tracks payment status, sends automated reminders, and integrates with your accounting system—transforming billing from administrative burden into efficient revenue collection.
What Is Invoice Software?
Invoice software digitizes and streamlines the entire invoicing workflow. Instead of manually creating invoices in Word or Excel, invoice software provides structured templates, automated calculations, and professional formatting. The software tracks which invoices are paid, overdue, or pending, and can automatically send payment reminders to clients.
The best invoice software integrates with time tracking (automatically pulling billable hours into invoices), accounting systems (syncing invoice data with financial records), and payment processors (letting clients pay directly from the invoice).
Key Features of Professional Invoice Software
Professional Invoice Templates
Professional invoice templates ensure every invoice looks polished and includes all legally required information. Customizable branding lets you add your logo, colors, and custom fields while maintaining professional appearance. Templates save time by pre-populating standard information and calculating totals automatically.
Payment Status Tracking
Payment status tracking provides real-time visibility into your accounts receivable. See at a glance which invoices are paid, which are overdue, and which are approaching their due dates. This visibility helps you prioritize follow-up and identify cash flow issues before they become problems.
Automated Payment Reminders
Automated payment reminders eliminate the awkward task of chasing down late payments. Configure the software to send gentle reminders before invoices are due, immediately upon due date, and at intervals for overdue invoices. Automation ensures consistent follow-up without requiring your constant attention.
Multiple Currency Support
Multiple currency support matters for businesses with international clients. Invoice software should let you create invoices in your client's currency, automatically apply current exchange rates, and track payments correctly regardless of currency differences.
Payment Processing Integration
Integrated payment processing dramatically improves payment speed. When clients can pay directly from the invoice via credit card, ACH transfer, or digital wallet, you remove friction from the payment process. Studies show invoices with integrated payment options get paid 2-3 times faster than those requiring separate payment arrangements.
Popular payment processor integrations include Stripe, PayPal, Square, and direct bank transfers. The invoice software should handle payment reconciliation automatically, marking invoices as paid when payment processes and updating your accounting records.
Recurring and Subscription Billing
For businesses with retainer clients or subscription services, recurring billing automation saves enormous time. Set up recurring invoice schedules once, and the software automatically generates and sends invoices at specified intervals (weekly, monthly, quarterly, annually).
Recurring billing should handle proration, mid-cycle changes, and failed payment retry logic. The best systems integrate with subscription management, automatically adjusting invoice amounts when clients upgrade, downgrade, or cancel services.
Time Tracking Integration
For professional services billing by the hour, time tracking integration eliminates double data entry and ensures billing accuracy. Tracked hours flow automatically into invoices, with appropriate rates applied based on team member, project, or task type.
This integration provides transparency—clients see detailed breakdowns of what work was performed, by whom, and for how long. This detail builds trust and reduces payment disputes compared to vague line items.
International Invoicing Considerations
Businesses working with international clients need invoice software that handles cross-border complexities. This includes multiple currency support, VAT/GST tax calculations for different jurisdictions, compliance with country-specific invoice requirements, and language customization for invoice text.
Some countries require specific invoice formats or data fields. Quality invoice software either provides templates for major markets or allows sufficient customization to meet local requirements.
Harvest: Professional Invoicing Built for Service Businesses
Harvest combines time tracking with powerful invoicing, creating a seamless workflow from billable work to payment collection. Tracked hours automatically populate invoices with detailed line items, professional templates showcase your brand, and integrated payment processing lets clients pay instantly via Stripe or PayPal.
Automated payment reminders handle follow-up, recurring invoices support retainer clients, and comprehensive reporting shows exactly which projects and clients are most profitable. For service businesses where time equals revenue, Harvest transforms invoicing from administrative task into strategic advantage.
Start invoicing with Harvest →
Frequently Asked Questions
What should every invoice include legally?
Every invoice should include your business name and contact information, client name and contact information, unique invoice number, invoice date and due date, detailed description of goods or services, quantities and rates, subtotal and total amount due, payment terms and accepted payment methods, and your tax identification number if applicable. Some jurisdictions require additional fields, so verify local requirements.
How do online invoices get paid faster than mailed invoices?
Online invoices get paid faster because they arrive instantly (no mail delays), include clickable payment links that eliminate friction, send automated reminders that keep invoices top-of-mind, and provide immediate payment confirmation. Studies show online invoices with integrated payment options get paid 2-3 times faster than paper invoices, significantly improving cash flow.
Can invoice software automate late payment reminders?
Yes, professional invoice software automates late payment reminders at configurable intervals. You can set up reminder schedules (for example: 7 days before due date, on due date, 3 days overdue, 7 days overdue, 14 days overdue) and customize reminder messaging. Automation ensures consistent follow-up without requiring manual tracking or awkward conversations.
Should I use invoice software or my accounting platform?
This depends on your needs. Full accounting platforms (QuickBooks, Xero, FreshBooks) include invoicing but are designed primarily for accounting. Dedicated invoice software or integrated time-and-billing tools often provide better invoicing workflows, especially for service businesses billing by the hour. Many businesses use specialized tools that sync with their accounting platform, getting best-of-breed functionality while maintaining integrated financial records.
Can I accept credit cards through invoice software?
Yes, most professional invoice software integrates with payment processors like Stripe, PayPal, or Square, letting you accept credit cards, debit cards, ACH transfers, and digital wallets directly through invoices. The software handles payment reconciliation automatically, marking invoices paid and syncing with your accounting system. Processing fees typically range from 2.9% + $0.30 per transaction for credit cards.
How do I invoice international clients in their currency?
Professional invoice software supports multiple currencies, letting you create invoices in your client's local currency. The software applies current exchange rates automatically and tracks both the invoice currency and your home currency for accounting purposes. This professional courtesy makes it easier for international clients to pay and demonstrates cultural awareness.
What's the difference between estimates, quotes, and invoices?
An estimate is a non-binding approximation of project costs, typically used early in sales conversations. A quote is a more formal, often binding, commitment to specific pricing for specific work. An invoice is a payment request sent after work is completed (or according to payment schedule for ongoing work). Quality invoicing software handles all three document types, with workflows to convert estimates to invoices once work is approved.
Should I charge late fees and how do I configure them?
Late fees encourage timely payment and compensate for the cost of delayed payment. Typical late fees are 1-2% per month (12-24% annually), though you must comply with state usury laws. To be enforceable, late fees must be disclosed in your payment terms before work begins—either in your contract or clearly stated on the invoice. Invoice software can calculate and add late fees automatically based on your configured rules.
