You might have noticed that handling your billing process has become more challenging due to higher customer expectations, real-time transactions, and remote operations.
This could be because your current tools aren't fully addressing your finance team's needs or your outdated software is holding back your business growth. Developing custom billing software could be the solution to all these issues.
With our experience of completing over 200 projects in the past eight years as a remote development team at Relevant, we understand how personalized software can greatly improve billing operations, enhance performance, and save costs.
In this article, we'll cover:
- The advantages of personalized billing software compared to off-the-shelf solutions.
- The latest trends in billing software development that are relevant in the market.
- The key functions and main requirements of billing software.
- The different stages involved in the development process and an estimate of the associated costs.
Let's begin without delay!
Creating a billing software that's right for you: Custom vs. Ready-made
Billing software is used by businesses to handle invoices and payments more efficiently. It makes tasks like creating invoices and managing documents easier and reduces mistakes.
When it comes to getting billing software for your business, you have two main options: using an existing ready-made solution or building a custom system. Let's take a closer look at both choices.
Ready-made solutions
If you're looking for something basic or want to try out billing software without building one from scratch, a ready-made option could work for you. Here's what you can expect:
- Basic Features: These solutions come with the fundamental tools you need for billing, like templates for invoices, reminders, and ways to generate reports.
- Integrations: You can connect these solutions with other common business systems, like customer relationship management (CRM) or eCommerce platforms.
- Easy Start: Ready-made options usually have simple interfaces and support available all the time. Your team can start using them right away. But you'll need to pick the right one, so you don't end up with lots of unnecessary things.
However, these solutions might not be the best if you want special features or a lot of customization. If you work with different kinds of customers who have their own payment methods, languages, or rules to follow, or if you deal with complex things like discounts, fees, or limits, a ready-made solution might not fit.
Custom Billing Software
For situations like those mentioned above, where you need more control and specific features, custom billing software makes more sense. Here's why:
- Tailored to You: Custom software can be designed to fit your exact needs. It can handle different customer groups in the way you need, considering their payment styles, languages, and rules.
- Dealing with Complexity: If you have intricate discount systems, fees, or specific limits, custom software can handle it all in a way that's right for your business.
In short, if you want something simple to start and your needs aren't too unique, a ready-made solution might work. But if you have specific requirements, work with different types of customers, or deal with complex billing structures, going custom is the better choice.
Custom Software Solution
A team of skilled developers can create an app that tackles your finance department's issues head-on. How? By making software that's just right for your business. Here are the advantages you'll enjoy with custom software:
- Seamless Integration: No matter how complicated your billing system is, custom software can connect not only with popular tools but also with all the services you currently use.
- Advanced Features: Custom software lets you set up unique workflows, personalized analytics, and more to match exactly what you need.
- Easy Growth: Modern software is built to expand. When you need to handle more work or add features, your development team can do it without causing any disruptions.
When picking the best choice for your company, think about how complicated your current billing system is and what your business aims for. Choose custom development if the existing apps can't handle your issues or if your business is growing rapidly.
To help you decide better, let's explore the recent trends in the billing software market.
Current Trends in Billing Software
In 2018, the USA required government agencies to use e-invoicing. In Europe, since 2019-2020, e-invoicing is a must for public administration. This strong push by governments has caused a market boom. The global e-invoicing market is predicted to reach $24.726 million by 2027, five times more than 2018. But what's the excitement about?
The need for e-invoicing has surged due to businesses going digital and the rise of quick global payments during COVID-19. Companies want fast transactions, not days of waiting. This has pushed the e-invoicing and billing software market to adapt quickly, leading to ever-changing trends. Let's explore the big ones.
Trend 1: Automation:
Billing software is getting more automated. Automation is now crucial, and it's becoming more advanced. Things like automated reminders, data entry, recurring billing, and scheduled payments make the billing process smoother. This lets your finance team focus on important tasks, not routine ones.
Trend 2: Machine Learning and AI:
Automation gets a boost from machine learning and AI. These technologies recognize patterns and predict outcomes. This helps companies track transactions, reduce mistakes, and even spot possible fraud.
Trend 3: Blockchain Technology:
Blockchain is on the rise. It spreads encrypted data across many servers, making data safer and reducing the need for third-party storage. Blockchain also adds transparency to transactions, showing changes in real-time and lowering the risk of fraud.
Trend 4: Cloud Computing:
Making online billing software? Think cloud computing. It removes the need for on-site servers and lets you access data from anywhere. Real-time updates and remote access help companies tackle urgent problems faster. Plus, it supports workflows on different devices.
Trend 5: Mobile Invoicing:
Everything's going mobile, including billing. When you send an invoice, customers can view and pay it on their smartphones. This speeds up payments and gives a better experience.
Understanding these trends helps predict what the market will need in the future. Now that you have an idea of the billing software market, let's delve into the features and decide what to include.
Essential Features of Billing Software
The features you need will vary based on your company's size, industry, and other factors. To make things simpler, keep these things in mind before exploring the functions:
Simplicity:
The software should make billing easier, not more complicated. Your finance team shouldn't need extensive training to use it.
Usability:
Alongside simplicity, the software should be easy to use. Test it to ensure it meets your needs and is easy to navigate.
Compliance:
Depending on your location and industry, the software must follow local data protection rules. Check this in advance.
Data Security and Backup:
Security is crucial. Ensure the software uses data encryption, strong authentication, fraud detection tools, and backups.
Now that you know what to look for, let's dive into the core functions of complete billing software.
Invoice Creation:
This is the main feature. It lets you make new invoices in different formats. You can use templates or generate them from existing ones.
Invoice Delivery:
The software can automatically send invoices to your clients via email, for instance.
Integration with Others:
You can pull payment and customer info from other sources like CRM or ERP. Integrating with other services helps manage orders, billing, contracts, and more.
Revenue and Tax:
Good software helps calculate revenue and report taxes within the system, saving you from using external tools.
Automated Notifications:
You get reminders for scheduled invoices or payment dates.
Reporting:
You'll need tools to create, customize, and export reports in various formats.
Payment Options:
The software supports multiple payment methods, like credit cards, PayPal, and bank transfers.
Access from Anywhere:
It's good if the software works on different devices, not just desktops. Your team should use it on phones and tablets too.
Global Functions:
Useful for worldwide businesses. You can issue invoices in different languages, handle various currencies, taxes, and payments.
Special Features:
Depending on your needs, you might want hourly billing, multi-tax rates, or unique payment terms.
Professional developers can help choose the right features that match your business and tech needs. Now, let's get into the development process and team structure.
How to create billing and invoicing software
If you're wondering how to make a billing system, follow these five key development stages. Don't worry, we'll guide you through each step. Here's a plan based on our fintech experience and successful projects.
1. Research:
Begin by choosing a software development model. This is your strategic plan for creating and using the software. Talk to your development team (if you have one) to define the work scope and the tech tools to use.
Questions to consider:
- What issues should the billing software solve?
- How many people will use it?
- Is your workload consistent or does it change?
- Will the software have extra functions besides finance?
- Do you need a web app, mobile app, or both?
2. User Experience:
With your basic requirements outlined, focus on refining them and deciding on the software's design. Make sure the features match your goals and problems. Determine if you want to prioritize security, personalization, automation, etc. Survey the end-users to understand their needs.
At this point, you might work with experts of Dallas web development to create sketches or models for further development.
3. Assemble Your Team:
For an efficient billing app, your development team should be skilled in fintech, cloud computing, automation, and machine learning. They should also communicate well.
Hiring options:
- Build an in-house team if you want full control, but this takes time and is limited to local talent.
- Outsource to a dedicated development team for quicker recruitment and a wider talent pool. This often saves costs too.
4. MVP Development:
Creating a minimal viable product (MVP) isn't a must, but it's recommended. It helps bridge the gap between your expectations and what the finance team really needs.
In simpler terms, it's like making a basic version to see if it fits before going all-in.
5. Development and Testing:
Now comes the actual development phase. The team turns your plans into a working software. They build and test it thoroughly to fix any issues.
Once this is done, your billing software will be ready to use, improving your finance operations.
Remember, each step is important to make sure your billing software works smoothly and meets your needs.
6. Complete Product Development
With MVP development underway, the process becomes more streamlined and quicker. However, there are two crucial aspects that your team should prioritize during development:
APIs and Integrations:
Billing software has many features, some of which can be built from scratch or sourced from third-party services (like bill tracking, basic transactions, chat support, etc.). Even if you create some features from scratch, your software should smoothly and securely integrate with third-party application programming interfaces (APIs).
Security:
Since the app deals with personal and financial info, security is paramount. Beyond the essential security features, your development team must implement secure application logic, role-based access control, and other fintech app security measures to ensure data safety.
6. Software Maintenance:
After development, the final stage is maintenance and updates. This involves refining and enhancing the software based on user feedback. Billing software is dynamic, so at this point, you can add features, improve functionality, and more. Regular testing and updates are crucial.
Developing billing software is intricate and involves multiple stages. Also, remember that the project doesn't end after development. Consider Svenn, a Norwegian company serving small construction businesses across 45 countries. Their software continually evolves even after initial development.
How much does it cost to create custom invoicing software?
The cost of creating custom invoicing software can vary widely based on several factors, including the complexity of the features, the size of the development team, the technology stack used, the location of the development team, and the overall scope of the project.
To give you a rough idea, custom software development projects often fall within the range of $50,000 to $500,000 or even more. Here's a breakdown of some key cost factors:
Development Team: The number of developers, designers, testers, and other specialists involved in the project affects the cost. Hiring a team with a wide skill set can increase expenses.
Features and Functionality: The complexity and number of features you want in your invoice software will impact the cost. More features or advanced capabilities will generally require more development time and resources.
Design and User Experience: If you're aiming for a sophisticated and user-friendly interface, it might require additional design and user experience (UX) efforts, which can contribute to the cost.
Integration: If your software needs to integrate with other systems or APIs, this can add complexity and costs to the project.
Testing and Quality Assurance: Ensuring the software works smoothly and is free of bugs is crucial. This involves testing and quality assurance efforts, which can influence costs.
Maintenance and Updates: The ongoing costs of maintaining, updating, and supporting the software after its initial development should also be considered.
Geographical Location: The location of your development team plays a role. Rates can vary significantly depending on whether you hire a local team or an offshore team.
Customization: If you need highly specialized features or unique customization, this can increase costs.
Project Complexity: The overall complexity of the project, including technical challenges and unique requirements, can impact the cost.
Timeline: The project timeline can affect the cost. Rushed development might require additional resources, which could drive up expenses.
Summary
In an era of real-time transactions and government-mandated e-invoicing, incorporating billing software into your finance department is crucial. If you're considering creating your own, refer to this checklist to ensure nothing is overlooked.
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