Best Invoice Automation Software: Revenue 365

October 22, 2025

5 min read

Managing subscriptions in today’s digital landscape often means processing a high volume of invoices each month sometimes numbering in the hundreds or thousands.

Each payment cycle involves renewals, upgrades, add-ons, and cancellations. Managing all these billing activities manually can quickly become time-consuming and full of small mistakes.

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Quick Read

Summary generated by AI, reviewed for accuracy.

Invoice automation software is a digital tool that helps businesses create, send, and manage invoices automatically. Instead of preparing invoices one by one, this system does it for users based on your billing rules, pricing plans, or customer subscriptions.

That’s where invoice automation software comes in. It helps businesses save time, reduce manual work, and get paid faster.

A research by McKinsey says that, the vast majority of B2B buyers are now willing to transact more than $50,000 online, which shows a major shift in how companies prefer to buy and pay.

In this blog, we will explore the features, benefits and best practices to implement invoice automation.

Why Manual Invoicing Holds Businesses Back?

According to APQC, manual invoicing processes typically lead to a 2% invoice error rate annually. With automation, that percentage can drop to just 0.8% per year. That small difference can have a big impact on your revenue and customer trust. Here is how manual invoicing slows your business down.

1) Consumes Valuable Time

Preparing, reviewing, and sending invoices manually can take up a large part of your workday. Business owners and teams often spend hours on repetitive tasks that could otherwise be used to improve services, strengthen customer relationships, or focus on strategies that drive growth.

2) Susceptible to Errors

Even a minor mistake in an invoice, such as an incorrect number, missing detail, or wrong calculation, can create confusion and lead to billing disputes. These errors can delay payments, disrupt cash flow, and require additional effort to correct.

3) Challenges in Scaling

As your customer base grows, manually keeping track of invoices and payments becomes increasingly complicated. According to a study by Adobe, the cost of processing an invoice can range from $15 to $40 for most businesses. This can make it difficult to manage multiple accounts efficiently and may slow down the overall growth of your business.

4) Potential Payment Delays

Invoices that are sent late or contain errors often result in slower payments from customers. This not only affects your immediate cash flow but can also impact budgeting, planning, and the ability to reinvest in your business.

5) Difficult to Monitor Revenue

Without an automated invoicing system, tracking which payments are complete, which are pending, and the total revenue due can be time-consuming and confusing. This lack of clarity makes it harder to make informed financial decisions or spot trends in your business performance.

Invoice automation helps you remove these barriers, giving you a faster and more reliable billing system that matches the speed of your business.

How Invoice Automation Software Works (Step-by-Step)

Automated invoice processing software works like a digital assistant that takes care of every stage in your billing process. Here’s a clear, step-by-step view of how it functions.

Step 1: Customer Data Collection

The system begins by collecting customer information from the online invoice software. This includes names, contact details, plan type, renewal dates, and payment preferences.
By keeping all customer information in one place, you don’t need to manually update spreadsheets or worry about missing details.

Step 2: Billing Rules Setup

Users decide how and when invoices should be generated.
For example, you can set:

Monthly billing for standard users
Annual billing for enterprise clients
Prorated billing for upgrades or add-ons

Once this setup is done, the system follows these rules automatically no need for reminders or manual checks.

Step 3: Automated Invoice Creation

When the billing date arrives, the invoice automation software automatically creates an invoice using your selected format. It pulls data such as item names, quantity, taxes, and payment due dates from your setup.

Step 4: Sending Invoices to Customers

Users can create custom invoices tailored to each customer, including all relevant details such as products, services, taxes, and payment terms. Once ready, these invoices can be automatically sent via email or integrated communication channels, making it easier for customers to pay on time.

Step 5: Tracking Payments

The invoice automation tracks incoming payments and updates invoice statuses in real time. Whether a payment is complete, pending, or overdue, users can see everything in one centralized dashboard.

Step 6: Recording and Reporting

Every completed transaction is automatically recorded. The system generates financial reports, showing total revenue, unpaid invoices, and payment trends. This helps you understand your cash flow and make smarter financial decisions.

Key Features of Invoice Automation Software

Modern invoice automation software is built to make business billing process faster, smarter, and easier to manage especially for businesses that handle recurring payments and multiple customer plans. Below are the main features that make this system powerful and practical for everyday use.

Custom Invoice Templates
Every business has its own identity, and invoices should reflect that. Invoice automation software allows users to design and store multiple invoice templates that align with your brand.
Users can choose the layout, add your logo, select colours, and organize information the way you prefer. Businesses can also set up separate templates for different pricing plans, product lines, or client categories.
This custom invoice feature helps you maintain visual consistency while keeping all your invoices structured and easy to read.
Flexible Tax Management
Taxes can differ based on customer location, service type, or product category. The automated invoice processing software automatically applies the correct tax rates and adjusts them as per the latest regional tax updates.
Users can configure multiple tax rules, set inclusive or exclusive tax formats, and handle country-specific tax systems such as GST, VAT, or sales tax.
This flexibility is especially important for global businesses dealing with customers in different regions. It helps maintain accuracy across all transactions without manual input.
Multi-Currency Support
Subscription-based companies often have customers around the world, each paying in their local currency.
The multi-currency invoicing feature allows businesses create invoices in various currencies while automatically converting values based on current exchange rates.
This make sure that every client receives an invoice in a familiar format making it easier to process payments.
Advanced Reporting
Comprehensive reporting tools give businesses a complete view of their financial performance. The system tracks all invoices, payments, refunds, and pending balances.
Users can generate reports by date, customer, region, or product to understand trends and identify patterns in your cash flow.
The reporting dashboard usually includes visual charts and downloadable summaries, making it easy for subscription business to analyse keep a record of all billing activity and monitor progress month after month.
Custom Fields
Not all invoices are the same, and sometimes businesses need to include extra details. With custom fields, you can add data points like project names, purchase order numbers, department codes, subscription IDs, or internal notes.
They can decide which fields appear on each type of invoice and how they are displayed.
This flexibility helps manage invoices to different client requirements or internal workflows without creating entirely new templates.
Personalized Themes
Design plays a major role in creating a good impression. The personalized themes feature allows you to choose from different visual styles for your invoices.
Businesses can modify elements like font style, background colour, section spacing, and alignment.
Some systems even offer drag-and-drop design editors to help you create invoices that look professional and modern without needing any design skills.
Centralized Platform
All invoicing activities happen in one place. The centralized dashboard displays customer lists, active subscriptions, payment statuses, and invoice records together.
It also lets multiple team members access the same workspace, with role-based permissions for added security.
Every action from invoice creation to payment tracking happens inside the same platform, keeping your billing process simple and organized.
Recurring Billing Automation
For subscription-based companies, recurring billing is the heart of the business model. This feature automatically generates invoices for renewals, upgrades, downgrades, or add-ons according to the customer’s plan cycle.
Users can set start and end dates, define billing intervals, and adjust for free trials or promotional offers.Once configured, the system handles all future billing events on its own accurately and on time.

Benefits of Implementing Invoice Automation

Invoice automation offers a range of powerful benefits that can streamline your billing process, boost efficiency, and ensure smooth cash flow. Here are some key advantages to consider.

Saves Time
Automating invoicing handles repetitive tasks like creating invoices, sending them, and tracking payments automatically.
The finance team can focus on analysing subscription revenue and planning business growth instead of spending hours on manual data entry.
Billing cycles occur on schedule every month, and the extra time gained can be used to improve products, services, or customer support.
Reduces Costs
Manual invoice processing can be expensive due to labour, printing, and follow-ups, which add up quickly for subscription-based businesses.
Invoice automation software performs most tasks digitally, removing repeated manual checks. Fewer mistakes mean quotes are managed faster, keeping money flowing smoothly into the business.
Over time, these savings can be reinvested in marketing, product upgrades, or customer service improvements.
Predictable Cash Flow and Revenue
Automated invoicing creates predictable cash flow by sending invoices on schedule and tracking payments in real time.
Businesses always know what income to expect and when it will arrive, making it easier to plan monthly and yearly budgets, allocate resources, and manage payroll or investments.
A steady, organized cash flow provides the stability required for business growth and reduces the risk of unexpected cash shortages.
Supports Data-Driven Decisions
Automation platforms provide detailed reports on payments, revenue trends, and customer behaviour. Businesses can identify which clients pay promptly and which may require follow-ups.
Insights from this data help you adjust subscription plans; design better offers and make strategic decisions to improve revenue.
Decisions are guided by accurate, reliable information, enabling your business to grow confidently and strategically.
Improves Customer Experience
Clear, professional, and timely invoices make it easier for customers to understand and pay their bills. Automated reminders are sent at the right time, reducing the risk of missed payments or misunderstandings.
This results in a smoother, more transparent billing experience, building trust and encouraging repeat subscriptions.
Customers feel valued and are more likely to continue their subscription, contributing to long-term loyalty.
Maintains Compliance
Businesses serving customers across regions must follow various tax rules and invoicing regulations.
Automated systems apply correct tax rates, keep detailed digital records, and simplify reporting for audits.
This reduces the risk of legal or financial issues while providing accurate documentation for financial oversight.
Minimizes Errors and Ensures Accurate Billing
Automated invoicing systems take care of calculations, apply discounts correctly, and manage taxes based on predefined rules, significantly reducing the chance of errors.
This high level of accuracy ensures invoices are sent correctly the first time, leading to timely payments and smoother billing processes.
As a result, your team can spend less time correcting mistakes and more time focusing on strategic initiatives and business growth.
Enables Seamless Business Growth
Automation allows your billing system to grow alongside your business without added stress. Whether you manage hundreds or tens of thousands of customers, the system can handle increased volumes efficiently and reliably.
Seasonal spikes, rapid expansions, or sudden surges in demand are easier to manage, ensuring billing remains organized, consistent, and professional always.
This makes it easier for your business to scale confidently while maintaining excellent customer experiences.

Manual vs. Automated Invoicing: A Quick Comparison

When it comes to managing subscription payments, businesses often face a choice between manual invoicing and automated invoicing. Understanding the difference helps you see why automation can make billing more efficient and manageable.

Aspect	Manual Invoicing	Automated Invoicing
Time Required	High staff must create, send, and track each invoice individually.	Low software creates, sends, and tracks invoices automatically.
Accuracy	Can include mistakes due to human error, like wrong amounts or missing details.	Very accurate calculations, taxes, and customer details are handled digitally.
Scalability	Difficult to manage when customer numbers grow or subscription plans change.	Can handle hundreds or thousands of invoices without extra effort.
Payment Tracking	Manual tracking is slow and requires constant checking.	Real-time tracking of payments, overdue invoices, and reminders.
Reporting & Insights	Requires separate effort to compile reports from spreadsheets or records.	Built-in reporting provides insights into revenue, pending payments, and trends.
Cost	Labor-intensive and can be expensive due to mistakes or delayed payments.	Lower long-term cost reduces labor and speeds up payments.

Best Practices to Implement While Managing Invoices

Following best practices while managing invoices helps businesses stay organized, get paid faster, and maintain smooth financial operations.

1. Use Clear and Detailed Invoices

Clear and detailed invoices make it easy for customers to understand what they are being charged for, reducing questions and delays. A well-structured invoice reflects professionalism and helps maintain smooth cash flow for your business.

Include invoice number, date, and itemized charges.
State payment terms and due dates.
Add contact information for queries.

2. Standardize Your Invoicing Format

Using a consistent format ensures every invoice looks professional and makes record-keeping easier. Standardization helps customers recognize your invoices instantly and simplifies internal tracking.

Use the same template for all invoices.
Include branding elements like logo and colors.
Keep numbering sequential for easier reference.

3. Automate Recurring Invoices

Automation saves time and reduces repetitive tasks, especially for recurring revenue based or repeat clients. It helps maintain regular cash flow without needing to manually create invoices each time.

Set up recurring billing for regular customers.
Schedule invoices in advance.
Reduce manual effort and delays.

4. Track and Follow Up on Invoices

Keeping track of sent invoices and pending payments helps you maintain steady cash flow. Regular follow-ups prevent overdue payments and help manage financial planning effectively.

Monitor which invoices are unpaid.
Send polite reminders when due dates approach.
Keep records of customer communications.

5. Maintain Compliance and Security

Protecting sensitive financial and customer information is essential. Compliance with regulations ensures your business avoids legal issues and builds trust with clients.

Include tax information and follow local regulations.
Use secure methods for sending and storing invoices.
Restrict access to authorized personnel only.

Revenue 365 – Manage Invoice Efficiently

Revenue 365 is built on the Microsoft ecosystem and seamlessly integrates with SharePoint, MS Teams, Outlook, Power BI, and Power Automate. Users can create custom invoices tailored to each customer’s preferences, making billing more personalized and accurate. The platform supports multi-currency transactions and flexible tax management, ensuring it meets diverse business needs. With its automation features, Revenue 365 streamlines the entire invoicing process, saving time and improving overall efficiency.

Future Trends in Invoice Automation

AI will help categorize invoices, detect late payments, and suggest improvements.
Mobile-friendly apps will allow businesses to create and manage invoices on the go.
Advanced analytics and integrated payment options will provide predictive insights and faster collections.
Enhanced global features and automated communications will simplify international operations and improve customer experience.

Conclusion

For subscription-based businesses, automated invoicing is more than a convenience it is a tool that improves efficiency, reduces costs, and supports growth.

Choosing the right invoice automation solution involves understanding your business needs, evaluating essential features, ensuring ease of use, checking integrations, and considering security and support.

Ready to simplify your invoicing? Get started with Revenue 365 today and enjoy a 14-day risk-free trial. No credit card details required!

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Frequently Asked Questions

What is invoice automation software?

Invoice automation software is a digital tool that helps businesses create, send, and manage invoices automatically. It reduces manual effort by handling calculations, taxes, and recurring billing, while also tracking payments and generating reports.

How do you automate an invoice?

Use invoice automation software to create invoice templates.
Set up recurring billing for regular customers or subscriptions.
Enter customer and payment details into the system.
The software automatically generates and sends invoices on schedule.
It calculates taxes, applies discounts, and tracks payment status without manual effort.

Can billing be automated?

Yes, billing can be automated using specialized software. Automated billing handles invoice generation, payment reminders, recurring subscriptions, and integration with accounting systems.

Does CLM 365 offer a clause library?

Yes, it includes a centralized clause library for consistent and compliant contract drafting.

How to automate an invoice?

Automating an invoice involves selecting suitable software, creating invoice templates, entering customer and product/service details, and setting billing schedules.

How are invoices sent to clients?

Invoices are usually sent to clients via email or integrated communication channels directly from the automation software. Businesses can also include payment links for easy online transactions, making it faster and more convenient for customers to pay.