Best Invoicing Software for Small Business

Setting up small businesses is quite a challenge in itself. To keep things running smoothly, you’ll want to replace old accounting methods with something practical and quick to use. An invoicing software is a practical solution to create and manage hassle-free invoices.

Keeping your finances under one roof is essential to save money, time, and effort. Invoicing software allows you to generate professional invoices for goods and services rendered. These apps can single-handedly manage the entire process from drafting to processing paid invoices. 

They can even create estimates, track finances, follow up with clients, and integrate with other payment apps.

However, it’s no secret that there are a ton of invoicing software out there. In fact, you might have already surfed the internet to find a dizzying array of them. Picking the right software makes all the difference in minimizing exhausting billing procedures for entrepreneurs and freelancers. To help you navigate this landscape, we’ve conducted deep research to identify the best invoicing solutions tailored for small businesses like yours.

How To Select the Best Invoicing Software For Small Businesses

Finding the right software compatible with your demands is an overwhelming task. However, it gets easier if you’re familiar with the features beforehand. The final choice comes down to your preferences, but here are a few know-hows you should keep in mind:

Cost 

Staying within budget is crucial for small businesses. After all, you’ll want to curb your expenses as much as possible to avoid a financial crisis. This is why it is vital to consider the payment plans of the invoicing software you opt for. 

There are several free invoice software that might suit your needs if you’re on a budget restriction. However, these tend to be limited in their features and options. Thus, it’s often best to choose software that is economical, offers comprehensive features, and ticks off all your business requirements. Make sure that it offers a free trial, too, so you can find an ideal match before investing in it.

Features and Customizations

Since every business is different, you’ll want to look for features that nourish your business’s growth in the long run. 

For example, some invoicing software offer customizable templates that give you the freedom to play around with colors and fonts. Professional templates featuring your company’s logo can even instill a sense of competency and boost brand image.

Since you’re paying for the software, the services should also not be limited to generating invoices. Most invoicing software offers a complete package by handling all your money affairs under a one-stop solution. They should do more by handling tasks like automated recurring invoicing and tracking unpaid bills. 

Plus, they should store customer and client records so you can access them when necessary. This helps streamline the billing process by tracking expenses, staying organized, and automating invoices.

Lastly, make sure your chosen software is practical and easy to use. That’s why we say that free trials are important. Use that opportunity to test out the platform and find the one you’re comfortable using.

Integration and Billing Payments

The ideal invoice software should offer useful financial insights and speed up payments while minimizing errors. Choose a software that integrates well with other apps that you use for your business. Check if the invoicing software works well with your accounting software, too, to ensure a seamless workflow.

Furthermore, the best invoicing apps should feature payment gateways that accommodate your clients. Make sure to choose a platform that supports international billing, like credit cards or other apps like PayPal, and works with multiple currencies if you’re growing your business globally. 

Support for Multiple Languages

Aside from being able to send and receive payments using international currencies, your chosen invoicing software should offer support for multiple languages. This will come in handy, especially when you create invoices specifically tailored for customers in other countries.

With this, you will be able to minimize the risks of miscommunication between you and your clients, ensuring smoother and faster transactions every time.

Mobile App Support

A good invoicing software should allow you to stay on top of the financial transactions you need to make wherever you are. So, aside from automating invoices, the software you choose should have a mobile app or can at least be used via a smartphone or tablet device. 

Many invoicing software nowadays, like Paypal, have mobile apps that can be used to send and receive invoices anywhere, as long as there’s an internet connection. With this feature, you will also be able to monitor your invoices in real-time, whether to check if the client has received them or whether they’re already paid. 

Top 9 Invoicing Software for Small Businesses

Small business owners already have so much on their hands. Hence, it is only fair enough to prioritize your needs and choose software that is reliable, affordable, and easy to use. Here, we’ve ranked our favorite invoicing software for small businesses. We’ve also mentioned their unique features and pricing to assist you in making the right choice.

Best Overall Invoicing Software: Zoho Invoice

Website: Zoho Invoice

As an all-rounder app, Zoho Invoice perfectly adapts and caters to all the needs of small business owners. Its automation and customizable invoices are highly economical, making it a leading choice on our list.

Pros:

  •  Free for 1000 yearly invoices. 
  • International use with multicurrency and 14 languages.
  • Numerous features include recurring invoices and reminders.
  • Supports multiple payment gateways.

Cons:

  • Limited integration with other apps and software.
  • Free version is limited to 5 clients.

Description:

Zoho Invoice is ideal for freelancers and SMB owners due to its extensive features and affordable price range. It’s also extremely popular because of its user-friendliness and excellent customer support services.

However, the capabilities of Zoho extend far beyond invoicing. This software allows you to create estimates, track time, and log expenses for an in-depth insight into your future projects. It also allows recurring payments to save time in case of repetitive invoices. 

It even allows you to design and personalize your invoice templates. You can use this opportunity to  promote a professional and consistent image of your brand to your client.

With automation for external and internal needs, this software is a particular favorite of businessmen for simplifying finances. 

The busiest of entrepreneurs love this software for its remarkable automation capabilities, both for external client needs and internal financial processes. For example, you can customize the automation based on discounts and sales. Customers will also receive email notifications to remind them when payments are overdue. 

Moreover, the mobile app provides an overview of your business tasks and projects when you’re on the go.

The app boasts familiarity in 14 languages and worldwide currencies for ease of international clients. Another notable highlight of Zoho is its ten payment gateways, including PayPal, Stripe, etc. Everything is secured by an automatic backup on the cloud, so you’ll never have to manually write your ledgers again.

But there’s one small catch: Zoho Invoice doesn’t integrate well with third-party apps like FreshBooks. The company wants to encourage its users to use Zoho suite.

Standout Features:

  • Customizable and free invoice templates.
  • Automated billing.
  • Recurring invoicing feature.
  • Creates estimates and adds to invoices.
  • Tracks time expenses and manages projects.
  • Receipt scanning.
  • Self-service portals.
  • Multicurrency feature.
  • Compatible with payment gateways.
  • Efficient mobile application.

Pricing:

Zoho provides flexibility that allows it to work with all kinds of businesses. This software is free of cost, with accessible features and secure data storage. The free version offers 1,000 invoices per year to five clients and five automated workflows.

If you want to tackle more clients and automated workflows, the app features economical monthly payment plans from $9 to $29 a month. The $29 package features unlimited clients and ten automated workflows to access a broader spectrum.

Runner Up Invoicing Software: FreshBooks

Website: FreshBooks

Initially designed for freelancers, FreshBooks has evolved from a simple invoicing software to a full-fledged accounting software for every type of business owner. It is perfect for creating quick invoices while also providing bookkeeping and insightful financial reports. FreshBooks stands out as one of the most versatile options on our list.

Pros:

  • Unlimited customizable invoices.
  • Automated invoices, reminders, and late-payment tracker.
  • Native integration with over 100 apps.
  • Award-winning customer support.
  • Extensive financial reports.
  • Multi-currency, including 14 languages.

Cons:

  • No free plan.
  • Slightly pricey as compared to other software

Description:

There’s a reason why FreshBooks is a leading software in today’s world. It’s a secure cloud accounting and invoicing app that’s incredibly useful for managing finances. FreshBooks also offers a quick and reliable way to keep your finances in check with its strong features and enhanced functionality.

Small businesses often require a suite of accounting tools to ensure everything runs smoothly. With FreshBooks, you can send unlimited invoices customized with your company’s logo or choose from a pre-designed invoice template. The modern dashboard is redesigned to track expenses and log time easily.

Various time-saving automation features are also integrated into the app. For example, it manages recurring client billing and helps keep a tab when clients view or pay an invoice. Moreover, if you’re fed up with late payments, the software allows you to keep track of delayed payments and send automated, customized reminders. 

In fact, if you dig a bit deeper, you’ll find out that FreshBooks has an entire accounting system setup. It even boasts an award-winning customer service with an active team featuring high-quality professional services.

This software manages your finances by creating a chart of accounts, a balance sheet, and a trial balance. With the premium plan, you can also gain access to bank reconciliation, reports, double-entry accounting, and bookkeeping. 

Moreover, FreshBooks stands out on the reporting front. You can generate a general ledger report, track sales tax, and view profits, losses, and expense reports. All this is to ensure you stay updated with your business progress.

FreshBooks takes the stage with its maximal integrating capability and simplified online payments. With compatibility for over 100 apps (such as Zoom, Spotify, and Salesforce, among others) you can easily connect with other business systems. It has streamlined the payment process with online credit card payments alongside automated updates. 

Furthermore, you can access all the finances of your small business with a single click on your mobile, laptop, or tablet—what else could you ask for?

Standout Features:

  • Comprehensive accounting features.
  • Includes bookkeeping and double-entry journal records.
  • Automatic recurring invoices.
  • Pre-designed and customizable templates.
  • Online credit card and ACH payments.
  • Creates estimates for simple finance reports.
  • Notifications when invoice is paid or viewed.
  • Track time and expenses with automated reminders.
  • Automatic late-payment tracking.
  • Easy integration with multiple apps.

Pricing:

Although one can argue that FreshBooks leans slightly on the expensive side, the price is totally worth the services it offers. Starting out with a free trial, the plans range from $15 to $50 per month with up to 500 clients.

This software also provides custom plans if your business deals with more than 500 clients. The premium $50 package incorporates a modernized interface with an accounting and invoicing system to cater to all your finances in one place. However, if this seems too much to take in, you can always opt for the basic plan, which limits itself to invoicing only.

Best Free Invoicing Software: Invoice Ninja

Website: Invoice Ninja

For emerging businesses that struggle economically, Invoice Ninja can save the day. This invoicing software is designed to make managing your accounts much easier. It offers billing services and invoicing features, with every aspect focused on providing a productive financial experience.

Pros:

  • Unlimited quotes and invoices for 50 clients.
  • Standout free plan with premium features.
  • Compatible with more than 40 payment gateways.
  • Multicurrency, including crypto.
  • Available in 20 languages

Cons:

  • Limited customization options.
  • No financial reports.
  • Limited integrations with other apps.

Description:

Invoice Ninja is a company built from scratch with no compromise over quality. It provides a complete invoicing package, all without requiring any specialized knowledge from the user. The manageable dashboard grants new business owners the freedom to play around with premium features for their business.

Designed as an open-source software, Invoice Ninja wins the trust of many businesses owing to its forever free plan. It generates as many invoices as you want for 50 clients and gives you an option to add a logo to your template. 

However, the winning quality of this software, among the others, is the free access it grants to premium features. For instance, the software is highly inclusive, with auto-billing and recurring invoicing features that save both time and effort. 

Invoice Ninja also fully supports multiple businesses under a single account, so it’s perfect if your company plans to scale or branch out down the line. The Kanban board organizes your projects and item lists while managing contacts for a more assembled approach. This invoicing app is operative in 20 languages and can manage 50 currencies from different countries, so there’s always room for international clients. 

Furthermore, Invoice Ninja prioritizes user-friendliness. It helps you track time and expenses with ease. The software even supports creating estimates and collaborating with vendors for future growth. Plus, it lets you add taxes and discounts seamlessly.

The payment method is also highly flexible. Invoice Ninja integrates with more than 40 payment gateways, including those that support online credit cards and cryptocurrency. Clients are notified through email when they view and pay. They also have free access to view their payment history.

The only real downside we could think of is how the free plan restricts integrations with other business software. It also does not include reports.

Standout Features:

  • Unlimited invoices and quotes.
  • Track time and expenses.
  • Recurring and automatic invoices.
  • Organize tasks and projects for clarity.
  • Multiple payment pathways, including online options.
  • Global reach with 50 currencies and 20 languages.
  • Client portal to access transaction history.
  • Open-source and cloud-based invoice.
  • Efficient mobile app operation.
  • Voice command feature saves time.

Pricing:

Invoice Ninja has the leverage of being a fully functional free invoice software. This free plan can sustain 50 clients. If you require financial reports and wish to unlock supreme features, you can opt for the Ninja Pro Plan at $10/month with a 14-day free trial.

Expanding business demands can be overcome by choosing the enterprise plan for $14/month for multiple users and a fully-branded client portal. Nonetheless, we assure you that the free plan is perfectly commensurate with the needs of small businesses, so you won’t need to look any further.

Runner-up Free Invoicing: Wave

Website: Wave

For sole proprietorships and other small businesses looking for free accounting software with good invoicing features, look no further than Wave. Its invoice creation and transaction management features are so good you’d think you need to pay for the service.

Pros:

  • No subscription needed
  • Easy invoice creation
  • Recurring invoice features
  • Track payments
  • Automated invoice reminders
  • Invoicing and payment details automatically sync with Wave’s accounting features
  • Support for multiple currencies
  • Bank-grade security for all transactions

Cons:

  • Invoice customization features can be better
  • Not scalable
  • No integrations with third-party software

Description:

Wave is a free accounting software specifically designed to cater to small businesses, sole proprietors, and freelancers. It provides an easy-to-use platform for creating and sending customized invoices in seconds, as well as setting up recurring invoices for repeat customers. Wave seamlessly syncs all invoicing and payment data with the accounting and bookkeeping features in your free Wave account.

Users do not need to pay monthly subscription fees to use the platform’s excellent invoice creation and tracking. Instead, fees are charged whenever clients send payments/

In addition to sending recurring invoices, Wave can automatically send reminders to clients about unpaid bills, so you won’t have to. Clients can conveniently make payments directly from the invoice, and Wave allows you to accept payments via credit cards. All this provides your clients some payment flexibility, which can be good for customer satisfaction, among other perks.

Wave lets you keep track of the transactions you have with each customer. This includes every invoice you’ve sent, the automatic reminders the software has sent, and transaction dates. This comprehensive record provides valuable insights into your customers’ behaviors concerning your services. 

Plus, Wave keeps you informed about whether your clients have viewed the invoice.

On top of all these features, Wave also has a mobile app you can use to keep track of your invoices. The app boasts a dashboard that provides essential information with a quick glance. For example, you can find a summary of your invoices, details about overdue and upcoming invoice dates, and the average time it takes to receive payments for the invoices you’ve sent.

Unfortunately, Wave doesn’t have subscription options offering more features. It’s not scalable and doesn’t allow you to add more helpful features like those found in other software like QuickBooks. It’s good for invoicing, but that’s all that it is.

Standout features:

  • Absolutely free for invoicing purposes only
  • Accounting features are also free to use
  • Easy invoice creation and customization
  • Mobile app lets you view existing transactions and send new invoices on the go
  • User-friendly invoicing software

Pricing:

Wave’s invoicing features are free—you only need to sign up. However, online payment processing and payroll features are paid. Payments are on a pay-per-use basis. Credit card transactions are charged at 2.9% plus 60 cents per transaction, while AMEX transactions cost 3.4% plus 60 cents each. Bank payments incur a 1% charge per transaction.

Best Mobile Invoicing Software: Square Invoices

Website: Square Invoices

Square Invoices has earned a leading reputation as a mobile invoicing software for entrepreneurs on the go. It features streamlined payment processing with a single click, along with unlimited invoices for free. Alongside efficient monitoring of your transactions, this humble app has so much more to offer!

Pros:

  • Unlimited and free invoices.
  • Feasible payment processing.
  • Automated and recurring billing saves time.
  • Excellent mobile application.
  • Integrated with Square Club and other apps

Cons:

  • No multicurrency.
  • No tracking for time and projects.

Description:

Square Invoices, developed by Square, is specifically designed to assist businesses with secure invoicing and payments. This invoicing software is relatively simple for users to navigate their way around. It also incorporates several features that prioritize convenience and ease for customers and clients.

Square Invoice is a free-to-use invoicing platform for reusing and customizing invoice templates and then sending them to clients in a second. It gives an option to schedule automated and repetitive invoices to ensure a smooth process. 

However, what really makes Square Invoices stand out in the market is that it has no client limit or invoice limit. Boasting real-time tracking for invoices, this software is even able to send reminders in case the client forgets to make a timely payment. With a centralized mobile phone system, you can create estimates and contracts to add to your invoices for a more professional outlook. This makes the process faster and more simplified to erase doubt among clients.

You’ll also be surprised to find out that Square Invoice is more than just an invoicing platform. Since quick payments are a key to stabilizing small businesses, Square Invoice schedules payments from anywhere and at any time. The unique feature is the milestone-based payment, which avoids burdening your clients with hefty payments.

To enhance the efficiency of your business, Square Invoice keeps everything organized and systematic. The project dashboard keeps you updated with everything at a glance, while the folders and notes are also highly accessible. 

Unfortunately, this software does not deal in multicurrency at the moment. It also does not offer project tracking, which is a major need for some dealings.

Standout Features:

  • Customizable invoices.
  • Schedule automated, recurring invoices.
  • Automated reminders for delayed payments.
  • Unlimited multi-package estimates and contracts.
  • Track paid and unpaid invoices.
  • Instant one-click online payment.
  • Milestone-based easy payment schedule.
  • Organized work with folder access.

Pricing:

Sign up for a free Square account, and you’ll be able to use it utterly free of cost. However, if you want to unlock custom fields and multi-package estimates, you’ll have to pay $20 monthly.

Payment processes are free for payment in cash or with a credit card. However, there is a fee of 2.9% plus a $0.30 fee for invoice transactions. This amounts to an economical budget for low-volume businesses but might not be appropriate for large-scale business dealings.

Runner-up Mobile Invoicing Software: PayPal

Website: paypal.com

PayPal is a well-established online payment system that works through both a website and a mobile app. It allows users to send invoices and receive payments easily. Users only need to create an account and connect it to their bank in order to use it. PayPal currently holds a huge share of the global market for online payment services and is used by many businesses and freelancers worldwide.

Pros:

  • Save invoice templates
  • Receive payments easily
  • Secure payments and bank transfers
  • Support for many currencies
  • Full stack payment options including PayPal and Venmo for digital payments
  • Business plan offers more helpful features
  • Recognized by businesses across the globe

Cons:

  • Features might be confusing for new users
  • Fees can be confusing
  • Customer service could be better
  • Frequently targeted for phishing and scams

Description:

PayPal is a globally-recognized payment platform that’s popular among businesses and customers in many countries. It’s easy to set up, is known for its secure transactions, works with different currencies, and makes sending invoices and receiving payments easy.

To use PayPal, all you have to do is create an account and link it to your savings or checking account or even connect it to your debit and/or credit card. PayPal will verify the user’s identity before allowing them to make any transaction. Once verified, you can easily buy or sell services. Transactions are completed in minutes, allowing users to withdraw their funds to a bank account in no time. 

If you’re a new user, there might be a brief hold for around 20 to 30 days, but this should stop once you’ve used the platform a few times.

PayPal also offers accounts for merchants, giving some benefits to small-to-medium-sized businesses. It is integrated into thousands of marketplaces and allows businesses to sell their services and receive payments from customers on many different platforms. Users can also use PayPal Checkout on non-e-commerce websites, meaning you can even get buyers to pay for your services from your blog without the need for a shopping cart. 

More importantly, PayPal has full-stack payment capabilities, meaning businesses can receive payments made using cash transfers as well as debit and credit cards. 

Merchants can also use a PayPal card reader for in-store payments. This gives your customers many options to pay for their purchases, so they won’t abandon transactions. Moreover, the platform makes it easier for your customers to avail of your offerings by not asking for too many details.

The payment platform also allows merchants to customize subscription plans so you can set up promotional campaigns to entice customers. For example, your customers can pay a $10 sign-up fee for a service that usually costs $30 a month.

PayPal uses escrow to ensure that you get paid for the services and products your clients purchase from you and vice-versa. It also sometimes holds funds and makes them unavailable for withdrawals so that it can verify if transactions are without any issues. This security feature prevents you from getting your funds early but ensures that there won’t be any dispute over them.

Many consumers trust businesses using PayPal as a payment method. That said, it’s also a popular target for scammers and phishing attempts. If you plan to use PayPal as your invoicing and payment software, make sure to tell your customers to send their payments through the invoices you send, or the PayPal Checkout buttons on your website. This will help you gain a better reputation among clients and also ensure that you get paid for your services.

Standout Features:

  • Fully online
  • Mobile app allows invoicing on the go
  • Customized invoice templates
  • Tracks payment of invoices
  • Customized subscription plans
  • Full stack payment capabilities
  • Secure transactions
  • Sandbox feature lets users test subscriptions

Pricing:

PayPal fees vary depending on the transaction and can be confusing at times. Here’s a quick look at the platform’s fees:

  • For online payments using debit or credit cards, PayPal takes 2.59% plus 49 cents per transaction. 
  • For in-person payments made using debit or credit cards, PayPal charges 2.29% plus 9 cents per transaction. 
  • For in-person payments made using PayPal QR code, on the other hand, PayPal charges 2.4% plus 5 cents for transactions $10 and below and 1.90% plus 10 cents for every transaction above $10. 
  • For digital payments made using PayPal, Venmo, or cryptocurrency, PayPal takes 3.49% plus 49 cents per transaction. 

Best Software with Bill Management: Bill.com 

Website: Bill.com

If you’re fed up with tedious bill payments and processing, then Bill.com is all you need for your business. It greatly simplifies the sophisticated workflow and works wonders to manage all financial affairs single-handedly. Juggling between payable and receivable processes, Bill.com is a payment platform rendering humble invoicing services.

Pros:

  • Comprehensive billing with data inclusion.
  • Auto-generates invoices for unlimited users.
  • Unlimited document storage.
  • Variety of payment gateways.
  • Integrated with multiple software.

Cons:

  • Slightly overpriced for limited features.
  • Users might struggle with the complex system. 

Description:

Eliminating the need for paper invoices and manual checks, Bill.com has revolutionized the billing domain. The software eliminates most hurdles that slow down your business and keep everything fast-paced. 

The redesigned interface provides a better insight to keep finances aligned. Bill.com allows automatic and recurring invoices that can be sent within seconds, guaranteeing faster payments. You can take control over accounts payable and receivable through an advanced workflow. 

Moreover, the app allows extensive customization to encourage a professional appearance. Tracking payment of invoices and notifications for late payments are worth mentioning features.

Documenting bills as electronic records, Bill.com offers unlimited space to keep your invoices, records, and receipts secure. It is a cloud-based platform with end-to-end encryption of transit data. Payments are even made much easier due to seamless gateways like PayPal, ACH, or credit cards. This greatly impacts small businesses by broadening their horizon for international payments, too. By syncing with the accounting software, Bill.com simplifies the reconciliation with your bank account for hassle-free payments.

While Bill.com may have a slightly complex app interface, it compensates with strong customer support to cater to your queries. This invoicing software also offers integration with other accounting software like QuickBooks and Xero for a more diversified experience. The intuitive progress bar tracks everything so that you stay apprised of the current situation of your business.

Bill.com simplifies the tech stack pending on your shoulders to reap full benefits. It is an adequate digital replacement for traditional paper billing. Automated features not only save time but also encourage vendor invitations and recommendations. But again, due to its complex design, it might take some time to familiarize yourself with all the features. 

Standout Features:

  • Recurrent auto invoices for quicker payments.
  • Automatic payment reminders.
  • Tracks payment of invoices.
  • Customizable templates.
  • Cash flow control.
  • Variety of electronic payment methods.
  • Powerful integration with other business software.
  • Well-structured documentation.
  • Self-service portals.
  • Functional mobile application.

Pricing:

Bill.com leans slightly more on the expensive side, with payment plans beginning from $39 a month. In the lowest-paid plan, you can either choose between paying bills or getting paid. You can upgrade to the $69 plan for collective features as your business begins to mushroom.

We totally relate to the fact that the prices of Bill.com are way above its competitors. The possible reason for this is the extensive payment facilities and accelerated client invoice approvals. By giving flexibility to clients, this software is fully transparent to allow access to transaction details.

Best Invoicing Software With Accounting Features: Xero

Website: Xero

For a dependable invoicing software that goes beyond just sending invoices, choose Xero. It’s an accounting software designed to help businesses manage their finances, starting from billing customers for the services or products they purchased to handling their inventory and other business concerns. But the most important feature about it is that it’s mobile integrated.

Pros:

  • Customize your invoices
  • Send invoices on the go from your mobile device
  • Automatic reminders
  • Multiple payment options
  • Secure transactions
  • Pass transaction fees to clients
  • Keep track of payments

Cons:

  • User interface could be better
  • One-way phone support
  • Unlimited invoicing feature is hidden behind paywall

Description:

Xero is an all-around accounting software that helps businesses stay on top of their bookkeeping and accounting needs. One of the major features it offers users is invoicing on the go. With Xero, users will be able to create customized invoices, send them to clients, and keep track of payments, all without having to spend a lot of time doing it, and without being limited to doing these in front of a computer at home.

You can send these invoices from your office computer or through Xero’s mobile app on your smartphone or tablet. Once the invoices are sent, the software will automatically remind clients to pay invoices, so that you won’t have to spend time chasing after payments for services rendered.

This software even lets you personalize your invoices by adding your logo, giving them a professional and personal touch. 

Clients who are paying you for services and products purchased can conveniently do it using their debit or credit cards, too. What’s more, you can set it up so that transaction fees are passed on to your customers, effectively helping you earn more in gross sales.

Despite its many features, Xero has some drawbacks, especially for businesses looking for software focused on invoicing only. First, the entry-level “Starter” plan limits users to a maximum of 20 invoices. They will need to subscribe to the more expensive plans to create and send an unlimited number of invoices.

Second, while Xero offers some customer support, you won’t be able to call them at your convenience. A customer support representative will call you if necessary, but you won’t be able to call them for a personal inquiry or concern. You will be limited to the Xero Central support site, or you can send an email. Expect responses to arrive hours after your email.

Nevertheless, Xero is a great choice if you are hoping to use its accounting features, like financial recording, reporting, and bank reconciliation. It truly allows your business to efficiently manage all financial transactions, including invoices and payments, within a single, comprehensive platform.

Standout features:

  • Mobile app allows on-the-go invoicing
  • Lets you create customized invoices
  • Automatically keeps track of payments
  • Invoicing and payments are recorded alongside other financial transactions
  • Multiple payment options 
  • Accounting software features make it an all-in-one solution for your business

Pricing:

Xero has three subscription plans for all businesses. The Starter plan costs $25 per month but only allows users to send up to 20 invoices. The Standard plan costs $40 per month but allows sending an unlimited number of invoices to clients. The highest-tier Premium plan costs $54 per month but adds a number of features, such as support for international currencies.

If you want extra features, you can add them for just an additional $7 per month. With this, you can keep track of projects you’ve accepted so that every minute spent on the tasks and all of the changes that occur in the process of completing them will be reflected on the invoices you send to clients. This helps prevent under- or overcharging and fosters strong working relationships with your clients.

Best All-around Accounting Software For Freelancers and Small Businesses: Intuit QuickBooks Online

Website: Intuit QuickBooks

QuickBooks is one of the most popular accounting software among businesses. Its invoicing software offers a range of features that are particularly beneficial for small businesses. Moreover, if you have plans to expand your small business into a mid- to large-sized enterprise, QuickBooks is a scalable solution that can easily adapt to the evolving needs of your venture.

Pros:

  • Create personalized invoice templates
  • Automatically add billable hours to invoices
  • Track invoices in real-time
  • Great user experience

Cons:

  • Expensive
  • Learning curve

Description:

Intuit QuickBooks is a highly-rated accounting software used by many businesses across the globe. It has a slew of accounting and bookkeeping features, but one aspect where it stands out and draws small businesses in is, naturally, invoicing.

QuickBooks lets users create personalized invoices that clients can pay the moment they receive them. It also offers the convenience of setting up recurring invoices for repeat customers, eliminating the need to send the same invoices repeatedly.

The software also boasts of progress invoices, which allow users to receive payments even in installments. This means clients can pay based on milestones, stages, or the percentage of work that’s already completed, as opposed to paying for the entire project upfront.

What’s great about QuickBooks’ progress invoicing is that you won’t have to manually compute and keep track of the remaining unpaid amounts. The software will automatically track the total amount, what has already been paid, and the unpaid balance. This provides a clear overview of who owes you and how much they owe at a glance.

QuickBooks then consolidates all invoicing and payment data with all your financial transactions. This allows you to get insights into your business’s overall performance.

Standout features:

  • Personalized invoicing
  • Excellent user experience
  • Real-time tracking of invoices and payments
  • Syncs your invoicing data with your business’s financial transactions

Pricing:

QuickBooks is not free, but it makes its invoicing features accessible to most small businesses in the market. Its entry-level “Simple Start” plan currently costs $15 per month. This plan includes unlimited invoicing and payment features. QuickBooks offers higher-tier plans with additional features, but for SMBs, the basic plan should suffice.

Accounting Software vs Invoicing Software: Which Should You Choose?

We believe it is crucial to draw the line between accounting software and invoicing software to avoid confusion. After all, you might have noticed that reputable accounting software, like QuickBooks Online and Xero, are part of our list. Why should some small business owners choose these instead of pure invoicing software? Or, why shouldn’t they?

Invoicing apps are simpler and more straightforward compared to accounting software. They offer a streamlined interface, making them less overwhelming for users. This simplicity can be beneficial for small businesses looking to effectively manage their budget.

In our opinion, it’s better to opt for a separate invoicing software in the early stages of your business. While accounting software does have advanced features that can be useful for startups and growing businesses, invoicing apps are a practical choice for those seeking a cost-effective and user-friendly solution.

However, once your business starts expanding, dedicated accounting software becomes indispensable. It will play a vital role in managing your finances and expenses. Accounting software can also provide a comprehensive view of your company’s overall financial health, making it essential for the sustained success of your expanding business.

Final Takeaway

Amongst the free choices, Zoho Invoice, Invoice Ninja, Square Invoices, and Wave are our leading recommendations. Zoho takes the stage with its ultimate features, mainly designed for invoices. Invoice Ninja works best for multiple businesses. Square Invoices has emerged as a favorite choice for payment processing. Wave is perfect for small businesses that want a simple but effective invoicing tool.

However, in the end, there is no one “best” software for every small business. It all comes down to the kind of business you own, your budget range, and the purpose of the invoicing software. 

Choosing software that pairs up well with your financial goals and demands is crucial so that your investment doesn’t go to waste. Moreover, take special note of the invoicing software’s standout features, especially focusing on what sets each platform apart. The effectiveness largely depends on how well they align with your needs, so be sure to select software with a wide range of capabilities. Striking the right balance between features and cost is key to finding your perfect choice.

FAQ

What is the Best Free Invoicing Software?

There are several invoicing software that offer services free of charge. However, they come with limitations and may not deliver premium services. 

Still, if you’re on a budget, apps like Invoice Ninja and Zoho Invoice will live up to your expectations. Invoice Ninja is one of the most customizable options for unlimited clients. Zoho Invoice is free only for 1,000 invoices per year, but it’s a comprehensible app with manageable prices and high versatility.

Which Invoicing Software is Easy to Use?

In the realm of invoice-only software, simplicity is the name of the game. Across the options listed above, all options that are invoicing software and not accounting software are easy to use. However, if we had to pick one, we’d crown FreshBooks for its effortless and uncomplicated features. The interface is easy to navigate and helps create invoices in an instant. Such apps provide a well-rounded accounting experience even if you’re not an expert.

Are Invoice Software Safe to Use?

Most invoice software comes with robust cybersecurity measures to shield your data from potential hackers. For example, they employ strong encryption to safeguard your data and back it up in secure cloud storage. This way, your data remains protected and readily restorable in case of any unforeseen events. Security is not an issue for the options we’ve listed above.

At Hart Accounting Services, we offer a complete range of tax and accounting solutions to cater to the needs of all business types and sizes. Outsourcing your business’s accounting will not only ensure regulatory compliance and accurate performance tracking, but it will also free up your time and resources to carry out your business operations.

 
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