An invoicing app helps businesses and individuals create, send, and manage invoices via automation. With an invoice app, you can quickly plug in details such as your client’s name, the services or products provided, the cost, and any payment terms, and the app will generate a professional-looking invoice you can send to your client via email or other digital methods.

Many invoicing apps track payments, send reminders for overdue bills, and store records of all your transactions, saving you time and making it more likely you’ll get paid on time. The difference is clear: 87% of businesses that have automated accounts receivable (AR) processes such as invoicing report improvements in overall process speed. Below, we’ll explain what features to look for in an invoicing app, how these apps improve cash management, and how much they cost.

What’s in this article?

• What features should you look for in an invoicing app?
  
• How can invoicing apps improve cash management?
  
• What are the costs of using invoicing apps?
  

What features should you look for in an invoicing app?

The right invoicing app is efficient, reliable, and fits into your workflow smoothly. Here are the features that can matter most:

• Customizable invoice templates: Your invoices should reflect your business. Look for apps that let you add your logo, brand colors, and custom fields.

• User-friendly interface: Prioritize apps with a clean, intuitive design that minimizes clicks and eliminates unnecessary steps.

• Integrated payment options: A good invoicing app will let clients pay through the invoice using credit cards, PayPal, Automated Clearing House (ACH) transfers, or newer methods such as Apple Pay.

• Recurring invoice capabilities: Look for an app with automated recurring invoicing if you have retainer clients or use subscription-based services. These apps make it easy to update the terms or fees on invoices without starting from scratch.

• Automated payment reminders: The app should offer customizable payment reminders—letting you set the tone, timing, and frequency—so you don’t have to chase down payments manually.

• Expense tracking: Some invoicing apps let you log project-related expenses to include in client invoices. This is particularly useful for businesses in which cost pass-through is common.

• Support for multiple currencies and languages: If you work with international clients, you’ll need invoicing that supports multicurrency transactions and translations. Look for apps that auto-calculate currency conversions using real-time rates and let you send invoices in the client’s preferred language.

• Built-in tax features: Your invoice app should automatically handle tax calculations, including value-added tax (VAT), goods and services tax (GST), and sales tax. It should also support location-based tax rates and produce tax reports as needed for regulatory requirements.

• Mobile accessibility: A dedicated mobile app or mobile-friendly interface lets you create, send, and manage invoices from your phone or tablet.

• Third-party integrations: Pick an invoicing app that integrates with your systems, whether that’s QuickBooks for accounting, customer relationship management (CRM) tools such as Salesforce, or project management platforms such as Asana or Trello.

• Detailed reporting and analytics: Look for apps that offer you actionable data on payment timelines, client profitability, outstanding balances, and cash flow trends.

• Data security: Choose an app that uses encryption and secure cloud storage and is compliant with regulations such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA) to protect customer data. Check for features such as two-factor authentication for added protection.

• Pricing that scales: Look for pricing that makes sense for your business now and will support you as you scale. Many apps have tiered plans that let you start with basic features and add services as you grow.

How can invoicing apps improve cash management?

Invoicing apps can give you more control, visibility, and predictability in your finances. Here’s how:

Faster payments

The faster you can create and send an invoice, the sooner you can get paid. Invoicing apps speed up that process by cutting out the time spent formatting documents and tracking down client details. On apps with integrated payment options, clients can pay from the invoice, making the process easier.

Fewer outstanding balances

Invoicing apps help tackle overdue invoices by automating payment reminders and enforcing payment terms. For example, you can set up reminders to nudge clients before a due date or shortly after. This persistence can lead to quicker collections without the need for personal follow-ups.

More predictable cash flow

Invoicing apps provide real-time visibility into pending payments and make it easy to track patterns: which clients pay quickly, which take longer to pay, and which services or products are your most consistent earners. This data helps you forecast cash flow with confidence.

Easier tax planning

Invoicing apps that handle tax calculations help you see what portion of your incoming cash is owed for sales tax, VAT, or other obligations. This helps you allocate cash appropriately and avoid surprises when it’s time to pay taxes.

Fewer invoice errors

Whether it’s an incorrect amount or payment detail or a missing tax line, mistakes on invoices can lead to delays—and cost you clients. Invoicing apps reduce these risks by automating calculations and standardizing the process.

Deeper payment insights

Many invoicing apps have dashboards or reports that show your financial health in real time. In addition to tracking overdue invoices, you can see trends such as:

• How long it typically takes clients to pay (your average payment cycle)

• Seasonal fluctuations in income

• Your top-paying clients or services

With this data, you can make smarter decisions about when to invest, when to hold back, or when to negotiate new terms with clients.

What are the costs of using invoicing apps?

Many invoicing apps operate on a subscription model, with plans ranging from free to $50 per month or more, while others charge a small percentage per invoice. Free plans often include basic features such as invoice creation, sending, and tracking. Paid plans typically come with additional features, such as:

• Custom branding

• Automated reminders

• Recurring billing

• Expense tracking

• Automated tax calculations

• Integration with accounting software

• Detailed analytics

• Custom reports

Some free or lower-cost apps might have hidden costs, such as a lower level of efficiency or lack of integrations, which means you’ll spend extra time manually inputting data. Though free apps might work for sole proprietors or small operations, scaling businesses often find they need the advanced features of paid versions.

Here are other fees to be aware of when using invoicing apps:

• Processing fees: Many apps charge transaction fees for processing payments. These fees are usually a percentage of the invoice amount (e.g., 2% + $0.20 per transaction for credit cards) or a flat fee for specific payment methods such as ACH transfers.

• International fees: If you work internationally, you might pay an extra fee for currency conversion or global invoicing.

• Additional invoice fees: Some apps will cap the number of invoices you can send in a given period based on your plan. If you exceed that cap, you might incur overage fees or need to upgrade to a higher plan.

• Integration fees: If the invoicing app integrates with other software such as QuickBooks, Xero, or Salesforce, you might need to pay for those integrations as part of your invoicing app plan or through the connected platform.

• Customization or API fees: Businesses that need custom workflows or integrations often use an application programming interface (API). Some premium plans might include access to an API, or you might be charged based on usage.