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What does an invoice mean? Why is it important?

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An invoice is an important accounting document issued by a seller to a consumer which keeps the record of the sale.

It consists of major details such as the name of the seller and the client, the description of the quantities of the product sold and the prices for the same.

It is important from the standpoint of both the seller and the buyer as it helps in keeping a record of the transactions made and also serves as a legal document of record against which the claims can be made.

Before the advent of computers and advanced technology, invoices were issued in writing manually. But after the revolutionary change in technology, software for invoicing started coming into existence. The use of such software reduces the time spent on issuing an invoice manually and also decreases the cost of operation.

Given below is the description of one such software, Freshbooks, which is one of the best invoicing software and can be used quite easily.

The growth of Freshbooks as an invoicing solution has made it one of the favourite options among small businesses and startups. It is extremely useful for the freelancers as well.

For running these kind of software one must have a good working Laptop or PC. If you have any kind of problem with your system you can take your laptop to lenovo repair center near thane.

What has changed between the old and new Freshbooks?

The updated version of Freshbooks was released around two years ago and some changes have been made which are as follows :

     The new version is designed to function according to the rules of the double-entry accounting system.

     It will not change the way you functioned earlier as all the functions like the creation of invoices, tracking of time and receiving payments will continue to happen in the same way.

     The only change is that now you will have a strong structure that would provide you with more organised recordkeeping and a detailed understanding of your finances.

     Some of the features available in the Freshbooks classic have not been included in the updated version. The features which have not been included are inventory management and voluminous reports.

Working of Freshbooks

     Simple set up tools

The feature which makes Freshbooks the best invoicing software is the simplicity in its operation.

Firstly, you need to provide all the relevant details of your company. Then, you are required to customise the template for your invoice.

The first screen, the dashboard, gives you a summarized overview of your financial status.

Then there are five charts which give you detailed information regarding the concerned sections.

1.    Outstanding revenue: How much payments are left to be made from the buyer's side.

2.    Total profit:  It gives you the number of total profit or loss.

3.    Spending: Categorically displays your expenditure.

At the top, you can see training videos, links to the support system. Through the upper right tab, you can invite you, team members, to create new transactions.

     How to create invoices

First of all, click the invoices tab button. A screen opens which will give you a brief explanation of the accounts from which you have to receive the payments.

The “from me” tab will show you the invoices that are overdue or outstanding. Graphical links will represent your updates invoices which are located just below the “from me” tab. At the bottom of the screen, there is a list of all the invoices that you have made.

2 additional transactions, estimates and proposals can be converted through this best invoicing software, Freshbooks. An estimate is brief whereas a proposal describes an estimate in detail. A proposal can also include tables and can be several pages long.

     Fee structure

The price you pay depends upon the number of clients you create invoices for.

The initial plan costs $15 and allows you to issue invoices to a maximum of 5 clients.

The higher tier costs $25 and issues invoices to 50 clients.

The premium one costs $50 and invoices can be issued to about 500 clients.

If you want to have a higher plan than $50, then you can customise the plan as per your needs.

What makes Freshbooks the best invoicing software?

     Its foremost advantage lies in its context-sensitive setting. This is a unique feature of Freshbooks which distinguishes it from the other invoicing software. It saves a great deal of time and presents before you a range of options.

     For example, You can choose a different style for your invoice. You can also set reminders and charge a payment for late submission of dues. You can also create a PDF file for the saved invoice.

     Editing the expenses: if you want to modify a large number of details then Freshbooks is your answer. Freshbooks allows you to attach a file, add or remove a receipt image and also change the currency. No other software offers such features in recording the expenses.

     Richer project management:  you can give a name to your project and also assign team members various posts for the project like the admin, manager or employees.

Some drawbacks of Freshbooks

      It is not suitable for large businesses as it is not designed to function according to their requirement.

     It does not take into account quarterly income tax payment.

     The charts are not very interactive and there is an absence of a to-do list.

     It doesn't merge directly with the most popular e-commerce websites.

Conclusion

Overall, Freshbooks is the best invoicing software which a small business owner can use to create and issue invoices in a simpler manner without any hassle.

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