There are still many businesses or freelancers that manually send invoices to their customers. There are also other ways to send invoices for example with Microsoft Excel or Google Spreadsheets. Creating an invoice and receiving payment is one of the most important parts of being an entrepreneur. But how many invoices do you send per month and how do you do this? You will probably save time. Are you a start-up or you don't send a lot of invoices? Then you don't probably need invoicing software. If you are willing to win time then it's smart to use an online invoicing software.
When to choose for an online invoicing software?
Would you rather not spend a lot of time setting up an invoice system? Choose for an online invoicing software. An alternative for you is to use Excel to make invoices. You can easily start in Excel, but if your invoices increase and your business grows, then you will lose a lot of and will see more errors in your accountancy.
- Save time, because creating invoices is automated
- Invoice for free with many functions
- Use many functions for free
- Possibility to change to a more extensive invoicing software
- Payment reminders and your own payment gateway
- Add your bank account number (IBAN) to the invoicing software
- Mobile friendly app
- Easy use when you are outside
Invoicing software or invoicing with Excel?
Invoices are processed automatically by a third party and payments can be received easily. If you don't use electronic invoices, this is the best time to start.
Creating an invoice through Excel might be easily done, but it is harder than it sounds. You have to add a lot of text manually in your file. You have to manually input product information, convert to a PDF and send from an online e-mail software to your customers.
How does online invoicing work in Excel?
Creating free invoices in Excel is easy. Do you want to create invoices for free? You can do this online or offline. If you have an office package you are able to create invoices offline everywhere. This application has different functions such as invoice templates. Invoicing in Excel is filled in quickly because the templates are ready for use. If you don't have an Microsoft Office package, then you are also able to use the online alternative. Making an invoice in a Google Spreadsheet online. Making invoices in Excel is easy if you don't want to spend money. Of course, Excel also has his cons which we will talk about in the next chapter.
For who is invoicing with Excel suitable?
If you are starting with invoicing or you don't send many invoices you might not need an online invoicing software. We understand as a freelancer that you want less expenses as possible. You are better off using Excel to make your invoices. A lot of the time Excel is already on your computer so you don't have additional costs because you don't have to pay for an online invoicing software. Because you are creating your own invoices you are able to know what is going on and when the payments have to be done. If you are using Excel to invoice you have to know all the laws for invoicing. It is not hard to make an invoice in Excel but it costs a lot of time and energy.
Advantages of an Excel invoice template:
- Free or low purchase costs
- Free invoice templates
- Available on all operating systems (Windows, Apple and Linux)
Using Excel as invoicing program has cons:
- You need knowledge of Excel formulas
- Excel doesn't offer support
- Invoicing in Excel is sensitive for errors
- You can't connect your bank
- You are not able to connect it to other business software
You don't have a real-time overview
Overview of your cash flow is important for entrepreneurs. Preferably you want to see your finances real-time. When you use Excel you don't have a real-time overview of your finances, because payments are not automated in Excel. You will not receive a notification when your customer has paid and you have to track your bank statements. Not only will this take a lot of time, but you also exactly know how things are.