Handling the paperwork side of freelancing can be overwhelming. Many people would rather spend the entire day working than spare a couple of hours sending invoices or tracking payments. Performing these tasks manually can lead to errors and consume valuable time. By automating your invoicing and payment tracking, you can make things much easier. Here’s what automation can do for you:

• Time efficiency
• Better accuracy
• Better financial management
• Improve professional image
• Ensures compliance

Here is how to automate invoices and payment tracking.

1. Assess your needs

Review your existing invoicing and payment processes and identify the flaws. Consider the number of invoices you issue monthly, recurring invoices, the number of clients, and the currencies you manage. Additionally, consider your taxation requirements and whether you will need integration with other tools. This assessment will help you choose the right automation tool and features.

2. Choose the right software

Now that you know what you are looking for, opt for a tool that aligns with your needs. You may require one or more tools to automate invoicing and payment tracking, depending on your business size and needs. Here are some popular options:

• Grey (recommended): Grey allows you to send invoices in your client’s preferred currency. You can integrate Grey’s multi-currency accounts for faster and cheaper cross-border payments. The platform Integrates seamlessly with your workflow, helping you track payments easily.
• Xero: This is a cloud-based accounting software that automates invoice creation, payment tracking, and VAT calculations. It integrates with bank accounts and payment gateways.
• QuickBooks: This is an invoicing tool that offers payment tracking and reporting features. It comes with customisable templates for business branding and automated reminders for overdue payments.
• FreshBooks: Ideal for freelancers and small businesses, FreshBooks simplifies invoicing, tracks payments, and integrates with tools like PayPal and GoCardless.
• Zoho Invoice: A cost-effective solution with features for recurring invoices, payment reminders, and multi-currency support.
• Wave: A free tool for small businesses, offering invoicing, payment tracking, and basic accounting features.

Read more: Best invoicing tools for freelancers working with international clients

Each tool has unique features, so choosing the right one depends on your business size, budget, and specific needs. Consider these factors when reviewing these options:

• Ease: The software should have an easy user interface.
• Integration: Ensure it integrates with your other tools (e.g., CRM, bank accounts, or payment solutions).
• Flexibility: Choose a tool that can grow with your business.
• Cost: Compare pricing plans, including free options like Wave or subscription-based tools like Xero.
• Currency support: Choose a tool that supports the currencies you manage to avoid confusion.

3. Set up your automation tool

Once you’ve chosen a tool, follow these steps to set it up:

• Create an account: Sign up for the software and input your business details.
• Customise invoice templates: Add your logo, business name, and contact details.
• Import client data: Upload client information, including names, addresses, and payment preferences.
• Connect payment gateways: Link your bank account or payment processors, such as Grey, , to receive payments in multiple currencies at low fees.
• Set up tax rates: Complete your VAT settings to ensure compliance with local regulations.

4. Automate invoice creation

When you automate your invoicing, you can set up recurring invoices that are created and sent out on their own. Using a custom template helps keep your invoices consistent and professional. The system will fill in details like invoice numbers, dates, and client information for you, so you don’t have to enter them each time. If you have several clients, you can also create multiple invoices at once, saving even more time.

5. Automate invoice delivery

Sending invoices manually can be time-consuming. Automation tools can:

• Email invoices: Automatically send invoices to clients via email with customised messages. Some tools allow sending invoices through channels like SMS for quicker response.
• Schedule delivery: Set specific dates for invoice delivery according to your billing cycle or at certain milestones.

6. Automate payment tracking and reminders

No one loves chasing payments. Automation helps with tracking payments and following up on overdue invoices. You can

• Monitor payment status: Display real-time updates on paid, pending, or overdue invoices.
• Send reminders: Automatically email clients about upcoming or overdue payments with polite, customised messages.
• Integrate with payment gateways: Allow clients to pay directly via links in the invoice, reducing delays.
• Record transactions: Automatically log payments in your accounting system for accurate records.

7. Generate reports and insights

Automation tools provide reporting features to help you analyse financial performance. This entails your  cash flow reports and revenue. These reports help with tax filings and audits.

Also read: How Grey helps you spend less time chasing payments

Automate invoices and payment tracking with Grey

Automating your invoices and payment tracking is useful for freelancers and businesses of any size. It saves you from spending too much time on paperwork. Grey provides automated invoicing that connects with its multi-currency accounts, making it easier to manage your finances. With Grey, you can spend less time on admin tasks and more time growing your business.

Get started today to streamline your finances.

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