Using HubSpot Invoices for Invoice Management: Pros & Cons

A couple of years ago, HubSpot launched their native invoicing feature, which helped change the game for many businesses that had been using an outside solution or keeping track of invoices themselves.

HubSpot’s native invoicing tool helps you create and manage invoices within the HubSpot environment. 

This billing feature is included with all HubSpot plans and products, so you can even take advantage if you’re using the free version:

Invoicing in HubSpot is free. All you have to do is add this feature.

Check out our list of pros and cons to using HubSpot’s native invoicing, aptly named HubSpot Invoices, to manage your client billing. 

What does HubSpot’s native invoicing feature do?

HubSpot’s native invoicing feature gives you an invoice management tool that you can operate entirely in HubSpot. 

This extends for the entire lifecycle of the invoice, from quotes in the Sales Hub to secure payment from customers using HubSpot Payments. 

HubSpot Invoices = Invoice Management & Payment

Here’s what you can do with HubSpot Invoices:

• Create, send, and track your HubSpot invoices without leaving the CRM.
• Keep your quoting and payments in HubSpot.

• Generate invoices directly from your deals and quotes.
• Sales teams can send invoices directly from HubSpot. 

• Send up automated messages to overdue clients.
• Send embedded payment links for direct, secure payment with HubSpot Payments.

How to use HubSpot Invoices 

First things first, you’ll need to go in and set up HubSpot Invoices in your CRM. While it’s technically free with all HubSpot plans, you have to be using the QuickBooks integration to get access to invoice templates. Otherwise, you’ll need a Starter, Professional, or Enterprise subscription and set up HubSpot payments to use the invoicing features.

When you go to set up, you’ll first put in place your invoice settings. This will include parameters like permissions and customizing the layout of your invoices. 

Check out HubSpot’s default invoice properties here before you configure, so you can get familiar with the terms and figure out where you want to change things.

From there, you’ll add your tax ID, and boom! You’re ready to start creating, sending, and managing your invoices in the HubSpot CRM. 

Remember that you’ll have to set up HubSpot Payments if you want your customers to be able to pay you securely with embedded links in the HubSpot environment. 

Pros & Cons

HubSpot Invoices will fit the bill for many businesses that are already using CRM for sales and can benefit from this free increase in functionality. That said, HubSpot’s native invoicing feature does have its limitations for certain types of organizations. Here’s what you can expect.

Pros:

• It’s free

If you already have the license with HubSpot, HubSpot Invoices is included free with your subscription. This is a great value-add to HubSpot in general, but it can also save businesses a lot of money. Third-party invoice management tools cost anywhere from $5 to $300 per month, so those who don’t need it, them’ll be able to replace these tools with HubSpot and save major cash.

• Improve the customer experience

HubSpot is known for its user-first mentality that helps businesses make life easier for their customers, and thus, more willing to purchase. HubSpot Invoices enables seamless billing for your clients, who will always know what to expect. This can go a long way in improving the customer experience and ultimately, the customer retention rate.

• Get paid faster

Using HubSpot Invoices together with HubSpot Payments makes it insanely easy for clients to pay you. They simply click on the embedded link and can provide a secure payment within minutes. 

• Quick insights

With HubSpot Invoices, people on your team don’t have to go looking for information to find out what the deal is with each client. Easily see with just a glance which invoices have been paid and which are pending. This can help in back-and-forth communication with clients.

• Save time (and money)

To expand, one of the biggest benefits of HubSpot Invoices is that you’ll save time and money not having to search for important invoice information. You’re already in the CRM anyway, so anything you need to know about invoice status is just a couple of clicks away. You can then get back to work without missing a beat.

Cons:

• Can’t easily pull billable hours

Tracking billable hours accurately is the lifeblood of many service businesses. Unfortunately, you can’t pull billable hours within HubSpot and allocate them to the correct invoice using the native invoicing feature. That means that consultancy agencies, for example, that bill by the hour will be forced to use an integrated project management app to avoid manual entry and/or wasting time with manual data migration. 

• Limited currencies

Service businesses are becoming increasingly global, both within their teams and with their clientele. However, HubSpot’s native invoicing capabilities only support the following currencies at this stage of the game: USD, CAD, EUR, and GBP. 

• Have to use HubSpot Payments or Stripe

If you want to get paid within the HubSpot environment, you’ll need to set up HubSpot Payments or Stripe. Other payment processing is not available. Remember that HubSpot Payments is only available to organizations in the US. To accept payments internationally, you will need to use the Stripe platform. 

FAQ

How much do HubSpot Invoices cost?

HubSpot Invoices, HubSpot’s native billing solution, is free for all plans and products. However, key software to leverage all the features will incur an additional cost. This includes QuickBooks as well as HubSpot Payments, the latter of which is only available with a paid HubSpot subscription. 

How do I get HubSpot Invoices?

To get HubSpot Invoices, all you have to do is set up the feature in your CRM. You will need the QuickBooks integration if you don’t want to start creating invoices manually.  

Do HubSpot Invoices include secure payment?

HubSpot Invoices include secure payment via HubSpot Payments and/or the Stripe platform. Those using other solutions will need to adopt a third-party invoicing tool. 

Bottom line– Who is HubSpot Invoices best for?

HubSpot Invoices offers basic invoice management functionality that will be more than enough for some users. Others may require a bit more from an outside invoicing solution that they can then connect to the HubSpot CRM.

At the end of the day, HubSpot Invoices is best for small HubSpot agencies based in the US. 

Medium-to-large-sized HubSpot businesses and those who need to be able to accept payment in multiple currencies aren’t the best candidates.

Furthermore, consultancy firms who charge by the billable hour are better suited with an integrated invoicing tool like PSOhub, where you can automatically allocate tracked time to the right project.