The Internet has influenced just about every aspect of business today. Many smaller enterprises in particular are now seeing the Internet as not just a place to do business, but also as a utility they can use to help them more efficiently manage their enterprises.

The Web 2.0 paradigm is showing how moving some business functions online can have massive benefits in costs and usability. One area that is getting a great deal of development at the moment is online accounting, specifically the generation, sending and tracking of invoices. Even a quick search of the Internet reveals a plethora of services that are now available. Many have the freelance consultant in mind, but some of the current batch of services can easily be used by any business.

As all owner/managers know, one of the fundamental components of an efficient and therefore profitable business is a robust and comprehensive invoicing system. So which online invoicing services are available today?

FreeAgent

Simply Invoices

Cashboard

SimplyBill

FreshBooks

Blinksale

LessAccounting

Invoiceplace

Invoice Machine

Invotrak

PayPal

Acuinvoice

Invoicejournal

Zoho Invoicing

All of these applications attempt to duplicate online the invoicing feature of an accounts application. For many small businesses the number of actual invoices they generate can be quite small. In this scenario, moving your invoicing online makes sense. Some of the online services are free if you send very few invoices per month. Zoho Invoices allows you to send five invoices per month for free, with invotrak and Invoice Machine allowing you to send two and three invoices respectively each month for free.

The good news is that costs can be very low when compared to the purchase price of a new accounting system that offers invoicing features, or a bolt-on for your existing accounts application. FreeAgent for instance costs a reasonable £15 per month for sole traders. Some services such as Cashboard and Invoiceplace offer a tiered approach to their fees. Cashboard has a whole range of services that you can match to your precise invoicing needs. Invoiceplace uses a three tiered approach to fees. You choose either their Lite, Professional or Premium services.

One issue with online invoicing is that to a degree the services will be divorced from your business’s accounting systems. Being able to feed into your accounts paid invoices and see at a glance which invoices are outstanding and what impact this has on your enterprises cashflow shouldn’t be underestimated.

Look closely at your invoicing needs and think about how much integration you actually need with your accounting software. You could of course move your accounting online as well. Systems like FreeAgent offer just this service. You can even use their services to help you complete your tax return. Other platforms you could consider include Accounting Express and Online50.

Any discussion of online invoicing can’t ignore the rise of PayPal. Now not simply the integrated payments system that eBay uses, PayPal can now be used by any business. From your PayPal account invoices can be quickly generated and sent to their recipient. The power of PayPal is the fact that the system also has a complete payment system that can be used by anyone with a PayPal account to make a payment. Increasingly businesses are using it to get paid much faster than traditional invoicing. When a PayPal invoice is received, an instant payment can be made. And with easy invoicing and payment tracking available on your business’s account, you always know what you are owed and who has paid.

Online invoicing and accounts is rapidly developing. The advantages of moving these components of your business online can mean freedom from desktop based applications. With your accounts and invoicing on the Internet you can access this information from any location via any computer with an Internet connection. You may find that this liberation frees you from what can often be complex accounting packages, and enables you to focus on running your business profitably.