How To Choose an Invoice Management Software for your Agency: A Quick Guide

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Sibu Sahu
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Invoicing & Billing Management is often considered as an underrated activity in an Agency, you ask why? I have a long list of reasons, see if you relate to any of the reasons below.

Clientjoy Invoice

Reason 1: Creating an Invoice is just a Google away - There are so many free online invoice software creators that allow you to create personalized invoices with your brand colours as well.

Reason 2: Free Templates Available on MS Excel & Google Sheets that allow you to create an invoice within seconds 

Reason 3: Often Accounting work is outsourced to a CA or a CS firm 

Reason 4: The frequency of invoice creation is seldom in Micro & Small business 

Reason 5: New & small agencies or small businesses usually work with local and domestic clients who themselves have an incorrect understanding of compliances due to the virtue of their size of business.

Why Agencies should have implemented Invoice Management software yesterday?

Invoicing software helps protect your and other business systems' financial resources, helps with invoicing systems and saves time and money.

The following are the list of challenges, issues or consequences you could face without an Invoice management tool

Challenges & Issues: 

  • Forgetting to provide accurate contact details: It's important to make sure that the company's and the client's name, address, email, and phone number are included correctly. This helps avoid confusion and ensures smooth communication.
  • Mixing up or missing invoice numbers: It's easy to accidentally use the wrong invoice number or forget to assign one altogether. Keeping track of unique invoice numbers is crucial for record-keeping and simplifying audits or reconciliations.
  • Neglecting to include the invoice date: Remember to include the date when the invoice is issued. This helps both parties understand payment due dates and ensures accurate financial reporting.
  • Being vague or lacking detail in the description: Providing a clear and detailed description of the goods or services rendered helps prevent misunderstandings and disputes with clients. It's important to paint a complete picture of what was provided.
  • Failing to provide pricing information: Each item or service should have its unit price, quantity, and total amount clearly stated. This prevents discrepancies and ensures timely and accurate payments.
  • Forgetting to include tax information: Make sure to account for applicable taxes, such as VAT, GST, or sales tax, to remain compliant with regulations and avoid penalties.
  • Using the wrong currency or conversion rate: Double-check that the currency and exchange rate used on the invoice are correct and up to date. This avoids confusion during payment calculations and financial reporting.
  • Leaving out payment terms and conditions: Clearly outline the payment terms, including the due date, accepted payment methods, and any late payment penalties. This helps manage expectations and reduces the risk of payment delays or disputes.
  • Not complying with regulatory requirements: It's essential to follow specific invoicing regulations, such as including necessary tax identification numbers or using mandated invoice formats. This ensures compliance and helps avoid penalties and legal issues.
  • Sending invoices to the wrong recipient: Take care to double-check the recipient's information before sending out invoices. Accidental mistakes in this area can cause unnecessary delays and confusion.

Remember, implementing solid invoice creation, a review of manual processes can help minimise these mistakes, ensuring accurate and compliant invoicing practices.


In India:

  • Non-compliance with India's Goods and Services Tax (GST) requirements can lead to penalties and legal charges.
  • Invoices that do not adhere to the prescribed format may be challenged by tax authorities, causing delays in tax refunds or audits.


Not following the guidelines set by the Internal Revenue Service (IRS) may lead to penalties, fines, or even legal actions.

Failure to comply with specific state-level invoicing requirements may result in additional penalties or audits.

In the UK:

  • Non-compliance with the Value Added Tax (VAT) regulations can lead to penalties and potential VAT fraud investigations.
  • Invoices that do not include the required information, such as the business's VAT registration number, may be considered invalid.

In Australia:

  • Failing to comply with the Australian Taxation Office (ATO) requirements for invoicing can result in penalties and legal consequences.
  • Invoices that do not meet the necessary criteria, such as including the Australian Business Number (ABN), may be considered invalid.

In Canada:

  • Non-compliance with the invoicing requirements under the Canadian Goods and Services Tax/Harmonised Sales Tax (GST/HST) system can result in penalties and legal actions.
  • Invoices that do not include the required information, such as the GST/HST registration number, may be considered invalid.

Irrespective of whichever geography you operate from, the Invoice Management system you choose to adopt has to tick all boxes. Let's see which are those boxes that need to be ticked. 


How to Choose Your Invoice Management Software ?

1. Does it offer Invoice Templates & Design Customisations?

Invoice management software that offers invoice templates and design customisation plays a vital role in reflecting the agency's unique identity and enhancing the client experience. Here's why it's crucial:

A: Branding and professionalism: 

Invoice templates allow Agency Owners to incorporate their logo, brand colors, and fonts, creating a consistent and professional look across all client interactions. A well-designed invoice reinforces brand recognition and helps establish a positive perception of the agency.

For example, an advertising agency can customise its invoice template to showcase its creative style and incorporate elements that reflect its expertise in design. This type of visually appealing invoice reinforces their brand image and professionalism.

B: Personalisation and client engagement:

Customising invoice templates enables Agency Owners to add a personal touch to their professional invoices too. They can include a personalised message, express gratitude, or provide additional information relevant to the client. This fosters stronger client relationships and enhances engagement.

For instance, a marketing agency can tailor their invoice template by adding a personalised message that highlights the client's achievements during the collaboration. This gesture shows appreciation and encourages ongoing collaboration.

C: Clarity and transparency:

Well-designed invoice templates help present information in a clear and organised manner. Customisation options allow Agency Owners to arrange invoice elements logically, making it easier for clients to understand the breakdown of costs, services provided, and any applicable taxes.

For example, a graphic design agency can customise its invoice template to visually showcase different design stages, making it easier for the client to comprehend the creative process and associated costs.

D: Efficiency and time-saving:

Invoicing software that offers templates and customisation streamlines the invoicing process. Agency Owners can save time by predefining invoice templates with the necessary details, such as payment terms, contact information, and item descriptions. This reduces manual effort and ensures consistency in invoicing practices.

For instance, a web development agency can create a template with predefined line items for common services, eliminating the need to input the same information repeatedly for each client.

2: Check If You Can Create & Automate Recurring Invoices?

A: Time-saving convenience

Agency Owners often have clients with recurring billing cycles, such as monthly retainers or subscription-based services. By utilizing the recurring invoices feature, they can set up automated templates with predefined intervals, saving considerable time and effort. This enables them to focus on other crucial aspects of their business.

For example, an Agency Owner providing social media management services can create a recurring invoice template for a client's monthly retainer. The software will automatically generate and send the invoice each month, eliminating the need for manual invoicing.

B: Improved cash flow management

Automated recurring invoices ensure a predictable and regular cash flow for the agency. Rather than manually generating invoices every billing cycle, the accounting software takes care of it automatically. This promotes better financial planning, allowing the Agency Owner to anticipate and allocate resources accordingly.

Consider a web design agency that offers website hosting services on an annual subscription basis. By automating recurring payments and invoices, they can ensure timely invoicing and avoid delays in receiving payments, facilitating smoother cash flow management.

C: Reduction of human errors

Manual invoice creation is prone to errors, such as typos or missing information. With automated recurring invoices, the risk of mistakes is significantly minimised. Once the template is set up correctly, the software generates accurate invoices consistently, reducing the likelihood of payment delays or disputes.

For instance, an advertising agency offering a quarterly advertising package can set up automatic recurring invoices, to be automatically generated and sent to the client. This reduces the chance of errors in invoice amounts or missing billing periods.

D: Enhanced customer experience

Automating recurring invoices offers convenience to clients as well. They receive timely, predictable invoices without the need for reminders or manual intervention. This professionalism and reliability create professional invoices that contribute to a positive customer experience, fostering stronger client relationships.

Imagine a marketing agency providing a monthly newsletter service. By automating recurring monthly invoices, they ensure their clients receive invoices promptly and consistently, creating a seamless and professional experience.

3: Check if you can Create & Automate Milestone based Invoices?

A: Customized Invoicing

Milestone-based invoicing allows Agency Owners to approve invoices that align their billing with project milestones or specific deliverables. This tailored approach ensures that invoices accurately reflect the progress of the work performed. For example, an advertising agency can create milestones for concept development, design, and final delivery. This enables them to invoice their clients based on completed stages, enhancing transparency and accountability.

B: Simplified Tracking

Automating milestone-based invoices eliminates the need for manual tracking of project progress and associated billing. The software can automatically generate and send invoices when predefined milestones are reached, reducing administrative burden and potential errors. This streamlined invoice automation process saves time and ensures accuracy in time tracking late payment fees and billing.

C: Improved Cash Flow Management

Milestone-based invoicing allows for more predictable cash flow for the agency. Instead of waiting until the end of a project to invoice the entire amount, they can generate invoices throughout the project lifecycle based on achieved milestones. This steady stream of payments helps maintain a healthy cash flow, providing financial stability and the ability to manage expenses effectively.

D: Enhanced Client Collaboration

Milestone-based invoices provide a transparent and collaborative approach to the billing process. Clients can track project progress and associated invoicing, fostering better communication and understanding between the agency and clients. It also builds trust and strengthens client relationships as clients have visibility into the value they receive at each milestone.

For instance, a web development agency can establish milestones for wireframe design, front-end development, and back-end integration. By automating milestone-based invoices, they can showcase their progress and value to clients throughout the development process.

4: Does The Invoice Creator Integrate With Popular Payment Gateways?

A: Payment Flexibility

Integrating with popular payment gateways provides clients with a range of payment options, catering to their preferences and convenience. Whether it's credit cards, debit cards, or digital wallets, clients can choose the method that suits them best. This flexibility increases the likelihood of prompt payments and reduces barriers to completing transactions.

For example, an advertising agency utilizing an invoice management CRM like Clientjoy, which seamlessly integrates with Stripe, PayPal, Payoneer, RazorPay, Square Payments, and Instamojo, can offer their clients a variety of payment options. This allows clients to select the gateway they are most comfortable with, increasing the chances of timely payments.

B: Streamlined Payment Reconciliation

Integration with payment gateways automates the process of matching payments to specific invoices. This eliminates the need for manual reconciliation, saving time and reducing the risk of errors. The agency can easily both track payments and identify payments received, ensuring accurate financial records.

By integrating with payment gateways, such as the ones available in Clientjoy, an agency can streamline accounting processes and payment reconciliation. The software automatically matches online invoice payments received through different online payment gateways with the corresponding paper invoices, simplifying the accounting process.

C: Enhanced Security

Popular payment gateways offer robust security measures to protect sensitive payment information. By integrating with these trusted platforms, invoice management and billing software ensure that client payments are processed securely. This instills confidence in clients, reassuring them that their financial data is well-protected.

For instance, when using an online invoicing software like Clientjoy, which integrates with reputable payment gateways, the agency, and its clients can rely on the advanced security features provided by these gateways. This creates a secure payment environment, fostering trust between the agency and its clients.

In conclusion, integrating invoicing software with popular payment gateways offers payment flexibility, streamlined reconciliation, and enhanced security for both agencies and clients. With seamless integration with Stripe, PayPal, Payoneer, RazorPay, Square Payments, and Instamojo, Clientjoy ensures a convenient payment experience, efficient reconciliation, and a high level of security to accept online payments. By leveraging these integrations, agencies can optimize their payment processes and provide a seamless and secure payment experience to their clients.

You can also check out our blog on 10 Best Invoicing Tools For Hassle-Free Billing for more information.

5: Does The Software Support Invoicing Standards For All Major Geographies? 

A: Compliance with Legal Requirements

Each country has specific invoice regulations and standards that businesses must follow to ensure compliance. By using invoice management software that supports these standards, Agency Owners can generate invoices that meet the legal requirements of each country. This helps avoid penalties, fines, or legal issues that may arise from non-compliance.

For example, an advertising agency operating in the UK can utilize invoice management software like Clientjoy, which supports UK invoice standards. This ensures that their invoices include all the necessary elements required by the UK tax authorities, such as VAT information and specific invoice numbering formats.

B: Seamless International Transactions

When working with clients or vendors across different countries, having invoice management software that caters to multiple currencies and geographies simplifies international business transactions. It enables Agency Owners to generate invoices that are easily understood and accepted by clients or vendors in different countries. This smoothens the payment process and reduces potential misunderstandings or delays.

With invoice standards for various countries, including the USA, Canada, UK, Australia, and India, Clientjoy facilitates seamless international transactions for Agency Owners. They can generate customized invoices that align with the specific requirements and formats of the accounting systems in each country, ensuring clarity and smooth communication.

C: Professionalism and Credibility

Following invoice standards specific to each country demonstrates professionalism and credibility to clients and partners. It showcases a commitment to operating in accordance with local regulations and business practices. This can enhance the reputation of the agency and build trust with clients and partners from different countries.

For instance, a web development agency working with clients in the USA can use invoice management software that supports US invoice standards. By generating invoices that comply with US regulations, the agency presents itself as a reliable and trustworthy partner to their American clients.

6: Does the tool have an Automated Payment Reminder System?

automated payment reminder

A: Improved cash flow

Timely payments are essential for maintaining a healthy cash flow. The automated payment reminder system sends timely reminders to clients, prompting them to make payments on schedule. This reduces delays and late payments and ensures a consistent inflow of funds for the agency.

For example, with Clientjoy's Automated Payment Reminder system, an agency owner can set up personalised reminder emails that are automatically sent to clients at specific intervals. This helps to maintain a steady cash flow by reducing payment delays.

B: Time-saving and efficiency

Manually sending payment reminders can be time-consuming and inefficient. Automating this process frees up valuable time for the agency owner and their team. The system automatically sends reminders based on pre-set schedules automated reminders, eliminating the need for manual follow-ups.

Clientjoy's Automated Payment Reminder system allows customisation of email content and the scheduling of follow-ups. The agency owner can personalise the to automatically send payment reminders and set the frequency of follow-ups based on their preferences and client relationships.

C: Stronger client relationships

Sending payment reminders through an automated system helps maintain professionalism and consistency in communication. It allows the agency owner to maintain a friendly yet firm approach in reminding clients about their outstanding payments. This strengthens client relationships by demonstrating professionalism and emphasising the importance of timely payments.

7: Check If White-Labelling Is Possible Within The Tool? 

A: Brand consistency

White labeling allows Agency Owners to customise the invoice management software with their own branding elements such as logos, colors, and fonts. This ensures brand consistency throughout the entire invoicing process and creates a professional and cohesive image for the agency.

For example, with Clientjoy's white-labeling feature, an agency owner can customise the software interface and client-facing documents with their own branding elements. This enables them to present a unified brand identity to their clients, reinforcing their professionalism and strengthening brand recognition.

B: Client Perception

White labeling creates the impression that the invoice management process and software are developed and maintained by the agency itself. This enhances the agency's credibility and instills confidence in clients. Clients perceive the agency as having a robust and comprehensive invoicing system, further enhancing their trust and satisfaction.

By utilising invoice management software like Clientjoy, which offers white-labeling, agency owners can create a customised experience for their clients. The invoice software also reflects the agency's brand identity, creating a positive perception and reinforcing the agency's expertise and attention to detail.

8: Does It Offer A Repository To Retrieve Old Invoices?

old invoice list

A: Record keeping and Organization

A repository allows Agency Owners to store and organize their old invoices in a centralized location. This ensures that important financial records are easily accessible and can be retrieved whenever needed. It eliminates the hassle of searching through physical files or scattered digital folders, saving time and effort.

B: Compliance and Auditing

The ability to retrieve old invoices is crucial for compliance purposes, such as tax filings and audits. Tax authorities or auditors may require access to past invoices as part of their review process. Having a repository of duplicate invoices readily available simplifies the compliance process and ensures the agency can meet legal requirements efficiently.

By utilizing invoice management software like Clientjoy, which offers a repository to retrieve old invoices, Agency Owners can ensure compliance with tax regulations and facilitate smooth auditing procedures.

C: Customer service and dispute resolution:

A repository enables prompt client service by providing quick access to past invoices for client inquiries or disputes. When clients have questions or need clarification regarding past transactions, the agency can retrieve the relevant invoices without delay. This helps to build trust and maintain positive client relationships.

With Clientjoy's repository feature, Agency Owners can swiftly retrieve and share old invoices with clients, resolving any concerns or discrepancies promptly. This improves client service and demonstrates the agency's commitment to transparency and accountability.

9: Does The Tool Offer Invoice Tracking & Activity Logs ( Opened, Viewed ) ?

invoice tracking & activity logs

A: Transparency and Accountability

Invoice tracking and activity logs provide transparency in the invoicing process. They allow Agency Owners to monitor the status of invoices, including when they were sent, viewed, and paid. This fosters accountability and ensures that all parties involved are aware of the progress of each invoice.

For example, with Clientjoy's own invoice and payment tracking software and activity logs, Agency Owners can easily track the lifecycle of their invoices. They can see when an invoice was created, sent, or opened by the client, and when payment was made. This transparency promotes trust and reduces misunderstandings or disputes.

B: Workflow Optimisation

Tracking invoice activities helps in the invoice management processes optimising workflow expense tracking, and identifying bottlenecks or delays. By analysing the activity logs, Agency Owners can identify areas where invoices are getting stuck or where the payment process can be streamlined. This allows for continuous improvement and ensures timely payment collection.

With Clientjoy's invoice tracking software and activity logs, Agency Owners can proactively identify any issues in the invoicing process. For instance, if a client consistently delays payment after viewing an invoice, the agency can take necessary actions to address the issue promptly.

C: Historical Reference

Invoice tracking and activity logs serve as historical reference for future analysis or audits. They provide a comprehensive record of invoice processing-related activities, which can be useful for financial analysis, reporting, project management or compliance purposes.

10: Does the Tool show Basic Charts & Numbers around the status of Invoices & Payments?

summary of invoices dashboard

A: Financial Visibility

Basic charts and numbers in invoice management software provide a clear overview of the status of invoices and payments, offering insights into the financial performance of the business.

B: Decision Making

Having access to the number of outstanding invoices and their dollar value allows agency owners to make informed decisions about cash flow management, budgeting, and resource allocation.

C: Prioritization

Knowing the number of overdue invoices and their total dollar value helps agency owners prioritize collection efforts, reducing the risk of bad debt and improving cash flow.

D: Tracking Progress

The ability to see the number of invoices being paid and their total dollar value enables agency owners to track progress over time, accept payments, monitor payment trends, and forecast revenue.

revenue chart

Example: Clientjoy's analysis and reporting dashboard offers basic numbers like the number of outstanding unpaid invoices along with their calculated dollar value, the number of overdue invoices with their total dollar value, and the number of invoices being paid along with their total dollar value. Additionally, it provides a revenue chart with custom date ranges, allowing agency owners to visualise their revenue performance and monitor financial progress. These features empower agency owners to gain financial insights, make informed decisions, and track their invoicing, invoice approvals, and payment status effectively.

Benefit Of Using a Invoice Management Software

how i use clientjoy meme

This image below entails the single biggest Benefit Of Using a Invoice Management Software


In conclusion, selecting the right invoice management software is crucial for the smooth operation of your agency. By leveraging the benefits of automation, accuracy, and streamlined workflow, you can save time, reduce errors, and improve overall productivity. With features like organisation, cost savings, faster payments, and enhanced client communication, an efficient invoice management system becomes an essential tool for your agency's success. Experience the power of streamlined invoicing processes and payment with the best invoice management software by signing up for Clientjoy today: Book a Demo for Clientjoy CRM.

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Harness Under the sleeve insights for Massive
agency growth.
Know Clientjoy under 20 mins

About Author

Sibu Sahu
VP of Growth
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Sibu is a Compulsive Articulator, a CX Enthusiast & an Intrapreneur in Clientjoy a platform that helps 13K+ Agencies & Freelancers in 90+ Countries acquire & retain happier clients. He completed his B.Tech in Computers & there on went onto starting up a Digital Marketing & IT Agency which was later on acquired for over a deal size of $250k.

About the Editor & Reviewer

Pranoti Hinge
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Pranoti is a B.Tech Grad, having worked across 10+ business verticals with 6+ years of Exp. Pumping up organic traffic & optimising search engines is her bread, butter & cheese. she currently serves as a Sr. SEO Strategist at Clientjoy - a platform that helps 13K+ Agencies & Freelancers in 90+ Countries acquire & retain happier clients.

Tanmay Parekh
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Tanmay pursued his undergraduate studies in Information Technology but marketing piqued his interest & he finished his postgraduate in Marketing & Finance from Macquarie University, Sydney. With diverse experience across different domains like Ed-Tech, Digital & SaaS. He currently serves as a Growth Head at Clientjoy - a platform that helps 13K+ Agencies & Freelancers in 90+ Countries acquire & retain happier clients.