For many small businesses, independent contractors and freelancers, managing invoices remains a frustrating task. Late payments, misplaced invoices and inefficient tracking methods disrupt cash flow and create administrative headaches. According to a survey conducted by the Independent Economy Council, 47% of the respondents are spending over six hours a month creating invoices and 74% said they are not getting paid on time. As a result, 59% of those who participated in the survey noted they are owed $50,000 or more, creating major cash flow issues for their business.
Traditional invoicing methods — such as manually creating PDFs or relying on spreadsheets — are time-consuming and prone to human error. Business owners often spend hours chasing payments instead of focusing on operations. Recognizing this challenge, Honcho developed an invoicing tool aimed at making the process faster, more reliable, and more transparent.
“We wanted to remove unnecessary steps that slow down small businesses from getting paid. Many entrepreneurs struggle with invoicing, so we built a system that automates the process and keeps payments on track,” said Miralda Ishkhanian, Chief Operating Officer of Honcho.
A Digital Solution for Small Business Invoicing
Honcho’s invoicing tool is designed for simplicity. Users enter their business and client details, input services provided, and generate a professional invoice instantly. The system offers customization options, allowing businesses to include branding elements such as logos and color schemes.
Once an invoice is created, users can send it directly through the platform. A built-in tracking system records when invoices are opened and viewed, reducing uncertainty about whether a client has received the bill. If a payment is late, automated reminders notify clients, helping businesses avoid uncomfortable follow-ups.
This type of digital invoicing is becoming more common. According to a Small Business Majority report, 66% of small business owners use online financial accounting software, with 43% having adopted these tools over three years ago and 39% implementing them during the COVID-19 pandemic. Honcho’s system integrates these features into a single dashboard, eliminating the need to juggle multiple tools.
Tracking and Automation Reduce Late Payments
Chasing overdue invoices is one of the biggest pain points for small business owners. According to the Federation of Small Businesses (FSB), 65.8% of small firms experienced late payments in the final quarter of 2023, an increase from 60.8% in the previous quarter. Additionally, the proportion of small firms reporting worsening late payments rose from 27.9% in Q3 2023 to 34.9% in Q4 2023. Honcho’s invoicing system includes a tracking feature that helps reduce these delays.
Users can monitor the status of their invoices in real time, receiving notifications when clients open, view, and pay their bills. If a payment remains outstanding, the system sends an automated reminder, allowing business owners to focus on work rather than debt collection.
Ishkhanian emphasized the importance of this automation, saying, “Small business owners don’t have time to manually chase payments. Our system ensures they know exactly when their invoice is received, viewed and paid, which helps prevent cash flow disruptions.”
Pricing Transparency and Tax-Deductible Benefits
Many invoicing platforms have complex pricing structures with hidden fees or per-invoice charges. Honcho uses a flat-rate pricing model: $15 per month, covering unlimited invoice generation, tracking, and payment reminders. In contrast, some competitors charge per invoice, which can add up for businesses that send multiple invoices each month. Honcho also offers a free trial, allowing users to send their first two invoices at no cost.
From a financial perspective, the service is classified as a business expense, making it tax deductible. This is a notable advantage for freelancers and small businesses looking to reduce operational costs.
A review of small business financial habits conducted by Xero in 2024 showed that 78% of businesses actively seek cost-saving tools for administrative tasks, reinforcing the need for clear and predictable pricing. Honcho’s model eliminates uncertainty, allowing businesses to manage their expenses effectively with one set monthly price for business service invoicing.
Integration with Business Management Tools
Beyond invoicing, Honcho provides features that support small business management. The system includes a quotation builder, enabling users to send estimates before finalizing invoices. This feature streamlines communication with clients, particularly for service-based businesses that require formal pricing approvals.
The platform also supports expense tracking, allowing businesses to monitor their cash flow in one place. Mobile accessibility ensures that users can create, send, and track invoices from their phones, an essential feature given the increasing reliance on mobile technology among small business owners. For instance, a 2023 survey by the American Bankers Association found that 81% of consumers used a mobile device to manage their bank account at least once in the previous month.
“Many of our users don’t work from an office — they’re on job sites, in meetings, or traveling,” said Ishkhanian. “We designed the system so they can manage invoices and payments anytime, from any device.”
Wider Adoption of Digital Invoicing
As businesses continue shifting toward digital solutions, electronic invoicing is expected to grow. According to a 2024 report by IMARC Group, the global e-invoicing market is projected to reach $68.7 billion by 2033, growing at a CAGR of 16.8% from 2025 to 2033, driven by the expansion of e-commerce and advancements in web and software-based-invoicing applications.
Governments are also encouraging electronic invoicing. The Australian Taxation Office (ATO) and the U.S. Internal Revenue Service (IRS) have both promoted digital invoicing standards to improve tax compliance and reduce fraud. This push is likely to increase adoption among small businesses.
With these trends in mind, the Honcho invoicing tool is part of a larger shift toward automation in financial management. By reducing administrative work and helping businesses receive payments on time, digital invoicing solutions are becoming essential tools for entrepreneurs looking to maintain financial stability.
