You need to invoice clients, but should you use a free template or invest in invoicing software? This guide compares both options honestly, including costs, time savings, and which works best for different business types.

Option 1: Free Invoice Templates

Invoice templates are pre-formatted documents (usually Word or Excel) that you fill in manually for each client. They're free and simple to start with.

✓ Pros of Templates

✓ Free - No ongoing costs
✓ Simple - Just fill in the blanks
✓ Full control - Customize everything
✓ Works offline - No internet required
✓ One-time setup - Download once, use forever

✗ Cons of Templates

✗ Time-consuming - Fill everything manually each time
✗ Error-prone - Easy to forget invoice numbers, make calculation errors
✗ No automation - Can't send automatically or set reminders
✗ Poor tracking - Hard to see which invoices are unpaid
✗ Manual filing - You organize and store everything
✗ Version control issues - Multiple copies, hard to find latest
✗ No payment tracking - Spreadsheet or notebook required

Option 2: Invoicing Software

Invoicing software is a web or app-based tool that creates, sends, and tracks invoices automatically. Most offer free plans or low monthly fees.

✓ Pros of Software

✓ Saves hours - Auto-fill client details, pre-set tax rates
✓ Professional look - Polished PDFs every time
✓ Automatic numbering - Never duplicate or skip invoice numbers
✓ Email directly - Send from the app with PDF attached
✓ Payment reminders - Automatic follow-ups for overdue invoices
✓ Status tracking - See sent, paid, overdue at a glance
✓ Automatic backups - Cloud storage, never lose invoices
✓ Reports - Revenue tracking, client history
✓ Mobile access - Invoice from anywhere

✗ Cons of Software

✗ Monthly cost - Most charge £5-20/month (though many have free tiers)
✗ Learning curve - Takes 10-30 minutes to set up initially
✗ Requires internet - Most are web-based
✗ Vendor lock-in - Switching platforms can be annoying

Time Cost: The Real Comparison

Let's compare the time cost - arguably more valuable than money cost:

Task	Template	Software
Create invoice	5-10 minutes	30-60 seconds
Convert to PDF	1-2 minutes	Automatic
Send to client	2-3 minutes	1 click
Send reminder	5+ minutes	Automatic
Track payment status	Manual spreadsheet	Real-time dashboard
Total per invoice	~15 minutes	~2 minutes

💡 Time Savings Example

If you send 10 invoices per month:

• Templates: 150 minutes/month (2.5 hours)
• Software: 20 minutes/month
• Time saved: 130 minutes/month = 26 hours/year

At £50/hour, that's £1,300/year in saved time - far more than software costs!

Which Should You Choose?

Choose Templates If:

✓ You invoice rarely (1-2 times per year)
✓ You're testing a new business idea
✓ You have lots of time and enjoy admin
✓ Your invoices are very simple
✓ You're comfortable with spreadsheets

Choose Software If:

✓ You invoice regularly (3+ times/month)
✓ You have multiple clients
✓ You want to save time
✓ You struggle with unpaid invoices
✓ You want professional, consistent invoices
✓ You value automation and reminders

The Hybrid Approach (Not Recommended)

Some people try using templates AND software together. This usually creates more problems:

• Invoice numbers get mixed up
• Can't track all invoices in one place
• Double the admin work
• Confusing for tax time

Pick one method and stick with it.

Real Talk: Free Software Options

You don't have to choose between free templates and expensive software. Many invoicing tools offer free plans:

• Experi: 1 invoice/month free forever
• Other tools: Various free tiers with limitations

This gives you software benefits without ongoing costs - perfect for occasional invoicing.

Try Software Risk-Free with Experi

Get all the benefits of professional invoicing software on our free plan. No credit card required, no strings attached.

✓ 1 invoice per month free forever
✓ Professional PDF generation
✓ Email delivery
✓ Payment tracking
✓ Upgrade anytime to £9/month for unlimited

Start Free - See the Difference

Bottom Line

Templates work if you invoice rarely. But if you're running an actual business, the time savings and professionalism of software pay for themselves immediately. Even better - start with free software like Experi and get the best of both worlds: zero cost AND automation.

Invoice Template vs Invoicing Software: Which is Best?