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The Best Digital Invoice Solutions for UK Businesses in 2024


There’s no question that money makes the world go round. From freelancers to small businesses, invoicing plays a massive part in collecting funds to stay afloat. But sometimes, it doesn’t always go according to plan. Manual errors, forgotten attachments, and late payments can get in the way. That’s where digital invoice solutions swoop in to save the day.

We’re here to chew the fat, as let’s face it, most of us have been in at least one of those situations…

In this article, I will share:

  • How digital invoice solutions can help you
  • Some of the best digital invoice providers and methods to use in 2024
  • Easy accountancy integrations for tax season 
  • Handy use cases and answers to frequently asked questions

What are digital invoice solutions?

Where did that invoice go? Who knows!

2001 is on the phone and wants its paper invoices back. 

You get the drift! Digital invoice solutions are the backbone of a modern business’ bottom line. They ensure payments arrive quickly and on time. And if they don’t, digital invoice software will chase them for you. It’s like having a personal payments assistant with a built-in filing cabinet. Plus, paper clutter is reduced for a happier planet.

Different types of digital invoice solutions

We just made it pretty clear that whatever your industry, invoice and accountancy can shoulder the task of requesting payments for you. 

But what are the different types? 

There are several different types of digital invoice solutions available, each with its benefits and drawbacks. 

Some of the most common options include:

  • Cloud-based invoicing software is accessed online and can be used remotely. HMRC-approved cloud-based solutions like Xero are affordable and easy to set up.
  • Custom invoicing software meets your business needs because it’s made for you! You guessed it – they’re more expensive than cloud-based solutions and take longer to add.
  • E-invoicing lets businesses send and receive invoice data electronically for automated processing. E-invoicing benefits include faster processing times and keeping payment regulations in check. Read HMRC’s information about e-invoicing

The benefits of electronic billing

Time is money, and by using invoice software, you’re saving on both. It’s your call on how you spend your time, though. Why not check out these other handy benefits?

Add some extra time to your day! Send user-friendly digital invoices electronically and even automate regular payments. 

Get paid faster with digital invoices that reduce payment delays and improve cash flow.

Sleep easy knowing that by using HMRC-approved digital billing, your invoices meet UK payment regulations, and taxes are in check. 

Get paid faster with digital invoices that get funds instantly, reducing payment delays and improving cash flow.

Save pre-00s expenses like printing and postage = more money for the finer things in life, like triple-cheese pizza.

Do your bit for the planet while also making your business more efficient with paperless invoicing.

The biggest benefit? We think it’s automating tasks so we have more time for other important activities. Spend more time growing your business or binge-watching Fargo Season 5. We won’t tell.

The five best digital invoice providers 

Find five of the most common digital invoice solutions below, including the pros and cons of each platform and what they’re best suited to. You need to do your research, of course, but hopefully, this points you in the right direction!

Invoice softwareProsConsBest for
XeroEasy to use with a wide range of features.
Cloud-based and integrates with other popular software.
Lots of features are limited to the most expensive plan.
Slow customer service has been reported.
Best overall business invoice software.
FreshBooksSimple interface.
Wide range of features for managing invoices, time tracking, and expenses.
Integrates with other business software.
Limited scope on adding users.
It isn’t suitable for larger businesses.
Best for UK-based freelancers and small businesses.
SageWide range of features, Integrates with other Sage apps.
Free plan for small businesses.
Premium support comes at a higher cost.
Over-complicated features.
Best invoicing software for more established businesses.
FreeAgentDesigned for freelancers and self-employed. Wide range of features for managing invoices, timesheets, and expenses. Integrates with other popular business software.
They offer a free basic plan. NatWest business account holders also get free access.
Price packages are limited and more expensive than main competitors.Best for small businesses, especially accountants and landlords.
QuickBooksFree and easy to use.
A good option for small businesses on a budget.
QuickBooks isn’t as user-friendly as its rivals.
Lacks industry and business-specific features.
Best free e-invoicing software for UK businesses

Tips to get started

If you are sold on digital invoicing, then let’s get into the action. This next section tackles how to add your new billing method, including helpful tips for a stress-free transition.

1. Choose the right software: There are plenty of software options available for digital invoicing, but it’s important to choose one that fits your business needs. Consider factors such as cost, features, and ease of use when making your decision. Check our table for the 

2. Start with a free trial: Most of the leading digital invoice providers offer 30-day free trials. Choose your favourite and run a test payment with a friend or trusted client to see how it goes before committing. 

3. Communicate with clients: Let your customers or clients know about the switch to digital invoicing and what they can expect. Be sure to answer any questions they may have so they can pay you on time.

4. Add any existing data: If you’re switching from paper or manual invoicing, you’ll need to add your personal information and customer base to the system. Do this carefully and double-check before sending invoices.

5. Train your team: Make sure your staff are aware of the new system and trained up if they need to use it regularly.

By following these tips, you can make the transition to digital invoicing as smooth as possible. Sit back, relax, and get paid faster!

Other ways to send digital invoices

You might not need a dedicated invoice platform, which could save you shelling out for yet another monthly subscription. There are other ways you can collect payments, starting with your bank app. Digital business bank apps, like Monzo Business, have mobile invoice features built in. This is ideal for sole traders and freelancers taking B2B payments.

How Atoa can help

If you’re a larger operation that takes a mix of payments from customers and other businesses, why not consider an instant bank pay app? Atoa lets you create QR codes and payment links with your bank details inside. Add them to your invoice template for payment into your account with a quick tap or scan.

Payment links make digital invoices easy as they can be tracked as “paid” and “unpaid.” You can also send guilt-free reminders using Atoa’s number.

Digital invoice FAQs

How do digital invoice solutions work?

Instead of sending paper invoices, companies can use digital invoices sent online. Both the sender (supplier) and receiver (buyer) use software that speaks the same “language” as these files to process them faster.

What’s different between digital and e-invoices?

A digital invoice is a file humans can read, like a PDF or scanned paper document. An electronic invoice (e-invoice) features a machine-readable code for automatic processing. (Good luck reading that!)

Do I need invoice software or can I use email?

Dedicated invoicing software offers much more. It lets you track payments, set reminders, and even automate repeat invoices. Time is money!

Is electronic billing safe?

Security is top-notch. Leading software providers follow regulations and use secure encryption to keep your data safe and sound.

Will my customers understand it?

Most people adapt to new things well. Digital invoices are user-friendly and easier to manage. Plus, most automated invoicing software lets you send reminders in both digital and paper forms, just in case.

Let’s wrap this up with a simple reminder. Digital invoicing isn’t just fancy technology. Choosing digital saves time and boosts efficiency to get funds faster. Ditch the paper trail and get smart with automated invoices!

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