July 22, 2022

What is quoting software? A complete guide

A digital quote with a thought emoji thinking

Quoting software is a form of CRM (read our guide on what is a CRM for more information) that allows service businesses and contractors to create digital quotes online. Sometimes referred to as quoting and invoicing software or e-invoicing, it is designed as an alternative to paper quotes. By using this software, businesses can produce quotes and invoices in less time and to a higher standard. This makes it particularly popular in the service industry where speed of delivery is especially valuable.

Who uses quoting software?

This software is used by companies that frequently need to produce quotes and invoices. The ability to turn around quotes in a short time allows businesses to win more jobs, which makes the software very valuable to small companies.

As a market, quoting and e-invoicing software is growing rapidly and is expected to quadruple in size, however, the use of the software still varies globally.

Currently, the uptake is the highest predominantly in North America and Scandinavia, although there are still many users across the rest of Europe. There is still room for considerable growth in uptake worldwide, with particular potential in Australia and New Zealand which both have strong service industries.

Some of the most frequent users of quoting and invoicing software are found in the following industries:

  • Electrical engineers
  • Gas engineers
  • Heating & plumbing
  • Pest control
  • Carpentry
  • Insulation
  • Painting & decorating services
  • Roofing
  • Landscaping & fencing
  • Fenestration
  • Home security
  • Kitchen fitting

Due to the simplicity of the software and the positive impact on small businesses, this form of e-invoicing can be used by any industry that generates quotes and invoices.

How does the software work?

Most quoting software tools are accessible via a subscription, paid monthly or annually. Depending on the software provider that is used, a business may have to pay extra for additional features beyond just quoting, however, there are companies that do offer all-in-one solutions.

The software is accessed online and is usually available with a complimentary app so that businesses can use the quoting and invoicing features in the field. Once signed up, users can access the features online and input all their own data and information. Some quoting services even allow a company to add their own custom branding and logo.

The best providers also offer further features beyond quoting and invoicing such as job management and customer relationship management.

What are the benefits of using this software?

There are a number of different benefits for businesses associated with using quoting software. Many of these benefits are related to the speed of delivery that is made possible by sending forms digitally rather than being drawn up on paper. In some instances, this can reduce time spent creating quotes from 4 hours down to just 30 minutes.

More leads converted to paying customers

One of the biggest attractions for service businesses is the impact an effective quoting CRM has on the number of jobs won. In one example a garden room company that integrated Payaca’s quoting and invoicing software into their business saw a 29% increase in the jobs they won.

In fact, evidence supports, that by making customer interactions easier and by turning around quotes and invoices more quickly, a company is far more likely to win business from potential customers.

As many as 80% of customers are likely to support businesses with personalised customer support over those that do not offer it, so by providing quality customer care through customer-friendly quotes, more business is secured.

The quality of the quote or invoice and its ease of access is a big part of what makes online invoicing such an effective tool. For customers, the experience of interacting with the quote is made far easier, while service businesses are able to produce better quality quotes than they were previously able to.

Businesses receive payments on time

Currently, one of the biggest challenges to the service industry is late payments. In the UK, 24% of businesses consider late payments to be a threat to their survival, the highest reported level amongst all European countries.

What's more, over half of SMEs that experience late payments wait one month or longer for the invoice to be paid; a fifth wait longer than two months. This creates real financial pressure on small businesses that often run tight budgets and rely on their next payment.

The best quoting software CRMSs offer additional features designed to help tackle the issue of late payments. Automated reminders are key to this, as these work by automatically sending out payment reminders to customers. Rather than letting a late payment run on without follow-up, reminders are set to automatically be sent after a pre-decided period of time.

The impact of this technology allows businesses to receive their payments on time far more reliably and reduces payment delays significantly.

Who provides quoting software?

There are a number of different companies that provide software for quoting. Many of these companies are primarily job management platforms that also offer quoting and invoicing.

Depending on what a business is after, having an understanding of the features these companies offer is important. For the highest quality quotes and a software designed with quoting and invoicing first, then Payaca is a great choice.

To find out more about some of the other quoting companies check out our blog on 6 of the best heating software tools.

Conclusions

Quoting and invoicing has for a long time been a slow and tedious process. Many quotes are not produced to a high standard, which can result in lost custom. Today, digital quoting and invoicing, allows companies to create quotes in record time while producing proposals that are of far higher quality.

For tradesmen, this software is a game-changing solution that is already benefiting businesses all over the world. As a growing industry e-quoting is only going to get bigger as more service workers discover the positive impact it can have.

For more information on Payaca’s quoting and invoicing software visit the Payaca website.

Transcript

How do you find the best job management software for your business?

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