Besides the innovative idea for the start-up, almost nothing is as important for business success as creating invoices as well as tracking them and, most importantly, keeping an overview of payments. While a lot of energy goes into the implementation of the start-up business idea, accounting is one of the rather unloved activities for most founders. Therefore, it is extremely helpful to be supported by invoicing programs. The invoicing software can usually automatically create invoices based on the offer, monitor open invoices and reconcile payments, as well as create payment reminders and dunning letters.
The first invoices of the new start-up company can of course be created quickly and easily using common office software such as Word. These invoices via office software can be saved in a spreadsheet. Since a young company generally creates more invoices quickly and these invoices should be tracked, an office software is not necessarily the most efficient choice.
It is better to choose an invoicing software from the beginning and not to switch from the previous office solution to a separate invoicing program in the course of business, as as a rule existing records have to be transferred to the program. This is usually more difficult from a previous self-created Word template for invoices than switching from a simple invoicing software to a more comprehensive accounting program.
There are several advantages to using invoicing programs for start-ups. One of them is the automation of the processes. The software can automatically create an invoice directly from the quote with a click. Likewise, the creation and sending of the reminder is generally automated.
The vast majority of invoice programs are offered as software-as-a-service and can therefore be easily and quickly kept up to date. These updates to the software are carried out by the provider. This is particularly important when legal requirements change. In addition, the invoicing software ensures that the invoices created are archived electronically. For this archiving, there are legal requirements that must be met. Here, too, an invoice program usually ensures compliance. For start-up companies in particular, this means additional security when it comes to compliance.
The invoicing programs of the various providers usually differ in the scope of functions in the areas:
The transition from invoice programs to accounting programs is smooth and often invoice programs can be complemented by further modules to a fully comprehensive accounting program. These further modules can be, for example, payroll accounting, asset accounting, liquidity planning, etc. At the beginning of a start-up's business, it is not necessary to purchase a comprehensive accounting program. What is important when selecting the accounting program is above all its expandability, so that the program can grow with the growing start-up company and can be supplemented with additional features.
Important features of an invoice program
Important extensions
Most invoicing programs have interfaces to accounting or also corresponding supplementary modules for accounting.
Extensions are then particularly important if a start-up company is active in a very special area, a special sub-market, etc.. Here, data may need to be exchanged via very specific interfaces with online marketplaces, sales platforms, auction or trading platforms. Defined invoice formats with partners might also be a prerequisite, or data exchange to specified cash register systems etc. might be necessary.
Data exchange with the CRM system is also generally one of the important extensions. In addition, extensions can be used to integrate business accounts and digitally capture receipts and incoming invoices.
Industry requirements
The requirements for an invoice program can vary somewhat from industry to industry. If you run a start-up in the field of e-commerce, you should pay particular attention to interfaces to store software, sales platforms and also merchandise management. Service providers may need an interface to time recording software.
Connection to the tax advisor
When choosing an invoice program, you as a start-up entrepreneur should check whether there is a tax consultant export. Under certain circumstances, data export to Excel is also possible.
Invoicing software must comply with the principles of proper accounting and retention of books, records and documents in electronic form and data access. It is particularly important that invoices cannot be manipulated.
For virtually every type of software, there are general selection criteria that both start-ups and established companies and organizations should consider. These include, for example, the usability of the software, intuitive user guidance, clearly designed program interfaces, but also support from the provider and testing options.
When selecting an invoicing program, you should take a closer look at the following points in particular:
Small business regulation
If you have opted for the small business regulation with your start-up, you should make sure when selecting an invoicing program that the program can create invoices without VAT.
With an invoice program, a start-up company can work more efficiently than with a simple solution for invoice creation with Word or Excel. The automation of invoice processes is high with an invoice software. At the same time, the invoice program ensures that invoices comply with legal requirements and contain all mandatory information. In contrast to a pure office solution, invoice programs provide an overview of incoming payments and can automatically create and send reminders. In most cases, invoice programs also offer extension options and interfaces so that the software can comfortably grow with the business activities.