Best Invoicing Software for Small Business

Setting up small businesses is quite a challenge in itself. Pair it up with the escalating financial challenges, and it’s enough stress for a day. 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 single-handedly manage the entire process from drafting to processing paid invoices. But that’s not all. Today’s software and apps can do so much more; creating estimates, tracking finances, following up with clients, integrating with other payment apps, and generating accurate invoices.

Chances are, you might already have surfed the internet for invoicing and billing software. However, we’ve researched and provided a comprehensive outlook on some of the best software. Picking the right software makes all the difference in minimizing exhausting billing procedures for entrepreneurs and freelancers.

Best Invoicing Software for Small Business

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. Invoicing software will prove to be a faithful companion as you venture on your business journey. Here, we’ve ranked our top five choices for the best invoicing software. For a thorough insight, we’ve also mentioned their unique features and pricing to assist you in making the right choice.

Best Overall: Zoho Invoice

Website: Zoho Invoice

Being 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 multi-currency 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 entrepreneurs due to its extensive features and affordable price range. Being a standalone software, Zoho Invoice is extremely popular because of its user-friendliness and excellent customer support services.

This software gives you an upper hand in personalizing and designing invoice templates. Such customization features promote a professional image of your brand. 

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.

With automation for external and internal needs, this software is a particular favorite of businessmen for simplifying finances. You can customize the automation based on discounts and sales. Not only this, but the app also boasts familiarity in 14 languages and worldwide currencies for ease of international clients.

Since Zoho is a free, cloud-based invoicing software, all your data entries are secured by an automatic backup. Customers will also receive email notifications to remind them when payments are overdue. However, a notable highlight of Zoho is the 10 payment gateways, including PayPal, Stripe, etc. Moreover, the mobile app provides an overview of your business tasks and projects when you’re on the go.

But there’s one small catch. Zoho Invoice has complex integrations with other third-party apps. It is compatible with the Zoho suite so that you can benefit from Zoho Books for a streamlined workflow. However, it does not integrate well with other invoicing and financing software like FreshBooks.

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 1000 invoices per year to 5 clients and 5 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 10 automated workflows to access a broader spectrum.

Runner Up: FreshBooks

Website: FreshBooks

Initially designed for freelancers, FreshBooks has evolved from a simple invoicing software to a full-fledged accounting software. It is perfect for creating professional invoices and, at the same time, provides bookkeeping and insightful financial reports as well. We love how it is 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. This cloud accounting and invoicing app is a handy tool to manage finances securely. FreshBooks is a quick app to keep your finances under check with robust facilities 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 are also integrated into the app. 

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. FreshBooks also claims to have award-winning customer service with an active team featuring high-quality professional services.

Dig a bit deeper, and you’ll find out that FreshBooks has an entire accounting setup. 

This software manages your finances by creating a chart of accounts, balance sheet, and trial balance. With the premium plan, you can also gain access to bank reconciliation, reports, double-entry accounting, and bookkeeping. FreshBooks also stands out on the reporting front. You can generate a general ledger report, track sales tax, view profits, losses, and expense reports. All this 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, like Zoom, Spotify, Salesforce, etc., 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. It is a software suitable for everyone to make account management much more manageable. With billing services and invoicing facilities, every feature is geared towards generating a productive finance experience.

Pros:

• Unlimited quotes and invoices for 50 clients.
• Standout free plan with premium features.
• Compatible with more than 40 payment gateways.
• Multi-currency, 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. The manageable dashboard grants freelancers 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. The software is highly inclusive with auto-billing and recurring invoicing features that save both time and effort.

Invoice Ninja fully supports multiple businesses under a single account, so it’s perfect if your company has several branches. The Kanban board organizes your projects and item lists while managing contacts for a more assembled approach. User-friendliness is a top priority with Invoice Ninja, as it tracks time and expenses. The software encourages estimates and vendors for better future prospects and even allows users to add taxes and discounts.

The payment method is also highly flexible, eliminating the need for manual struggle. Invoice Ninja also integrates with more than 40 payment gateways to foresee the future of online credit cards and cryptocurrency. Clients are notified through email when they view and pay, and they also have free access to view their payment history.

However, the winning quality of this software among the others is the free access it grants to premium features. And still, there’s more! This invoicing app is operative in 20 languages and can manage 50 currencies from different countries, so there’s always room for international clients. However, on the downside, the free plan restricts integrations with other business software and 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:

Forever Free! 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-user 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.

Best Mobile Invoicing Software: Square Invoices

Website: Square Invoices

Square Invoices has earned a leading reputation as a mobile invoicing software for people 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 multi-currency.
• No tracking for time and projects.

Description:

Square Invoices, a software launched by Square, was solely developed with the purpose of helping 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 also 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 also sends 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.

However, you’ll 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, Square Invoice does not deal in multi-currency 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 Square Invoice 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.

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 aims to eliminate all hurdles that slow down your business and keep everything fast-paced. Designed as a standalone software, Bill.com lives up to its name.

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 a faster payment. 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 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.

Despite a slight app complexity, Bill.com features strong customer support to cater to your queries. This invoicing software 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 to traditional paper billing. Automated features not only save time but also encourage vendor invitations and recommendations. However, due to the 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 from 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.  

Accounting Software or Invoicing Software

We believe it is crucial to draw the line between accounting software and invoicing software to avoid confusion. You might have noticed that reputable software like QuickBooks Online, Xero, and Wave are missing from our list. Why? Read along to find out.

QuickBooks Online, Xero, and Wave are all popular accounting software packed with features you won’t require for invoicing. Most accounting software are more complex, with multiple options for bookkeeping and financial handling. Such extra features only confuse the users and lead to clutter. You surely don’t want that in a small business.

We’ve narrowed down our choices to apps that are explicitly designed for invoicing. Invoicing apps tend to keep things simplified with a less overwhelming interface. Moreover, small businesses can manage their budget successfully because invoicing software have pretty low prices as compared to accounting software.

To wrap up, it’s better to opt for a separate invoicing software to keep everything systematically organized. Early setups will find such apps more practical and quicker to use. However, once your business starts expanding exponentially, accounting software will be lifesavers by keeping your financial forecast in check. By handling all finances and expenses, accounting software guarantees a broad picture for your company in the long run.

How To Choose the Best Invoicing Software?

Finding the right software compatible with your demands is an overwhelming task. However, it gets easier if you’re familiarized with the features beforehand. Don’t shy away from doing your own research and trying out various apps till you get your hands on the perfect one. The final choice comes down to your preferences, but here are a few know-hows you should keep in mind.

Cost Expenses

Staying within your budget limits is crucial for small businesses. With your own startup, 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 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.

Choosing a software that is economical yet offers comprehensive features is the real deal. Consider the options we’ve listed above and choose one that ticks off all your business requirements. Based on the number of clients, the majority of the invoicing software goes on a price hike, so you’ll want to keep that in mind too. We highly recommend choosing an app that offers a free trial so that you can find an ideal match before investing in it.

Features and Customizations

Don’t shy away from exploring various features the software offers. Since every business is different, you’ll want to look for features that nourish your business’s growth in the long run. Customizable templates give you the freedom to play around with colors and fonts. Professional templates featuring your company’s logo instill a sense of competency and boost brand image.

At the same time, it is essential to prioritize user-friendliness and feasibility so that the app is straightforward in functioning. Since you’re paying for the software, the services should not be just limited to generating invoices. Rather, the software should save time and effort by automated recurring invoicing and tracking unpaid invoices.

It should also focus on saving customer and client records so that you can access this information whenever needed. Why do we say this? Because tracking expenses, organizing, and automating the invoices streamlines the billing process. Most invoicing software offer a complete package by handling all your money affairs under a one-stop solution.

Integration and Payments

The best invoice software should provide valuable financial insights and fast payments with minimal errors. You must consider an app that is consistent with other software programs that you’re using for your business. Check if the invoicing software works well with your accounting software for easy flow.

Furthermore, smooth and easy payments make everything a piece of cake. The best invoicing apps should feature payment gateways that accommodate your clients. Make sure to choose an app compatible for international billing and multiple currencies if you expand your business globally. Online payments through credit cards or other apps like PayPal are crucial for flexible and versatile workflow.

FAQ: Invoicing Software for Small Businesses

Still dubious about something? We’ve tried to tackle everything informative regarding invoicing software for small businesses. However, if we left out anything, here’s a short FAQ section to get it covered.

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 1000 invoices per year, but it’s a comprehensible app with manageable prices and high versatility.

Which Invoicing Software is Easy to Use?

Generally, a software designed only for invoices is pretty straightforward in functioning. All of the above-listed options are simplified software that anyone can use. But, 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?

Almost all invoice software feature cyber security to avoid user data being compromised by hackers. Renowned and professional companies take specific measures to protect their software through top-notch security, so there’s nothing to worry about. Your data is not only protected with the highest encryption but also connected to cloud storage as a backup. This ensures that your data remains safe and secured in case of a mishap.

Brief Takeaway

To put it all in easier words, here’s a brief conclusion that summarizes everything about our top five invoice software.

Amongst the free choices, Zoho Invoice, Invoice Ninja, and Square Invoices are leading recommendations. Zoho takes the stage with its ultimate features, mainly designed for invoices. Invoice Ninja works best for multiple businesses, whereas Square Invoices has emerged as a favorite choice for payment processing.

FreshBooks is an unmatched software owing to its accounting features like bookkeeping and journal entries. With a massive demand in the market, this software is the real deal for receiving financial reports and generating professional invoices. Bill.com is more of billing software and allows invoices to be generated automatically. It promotes client ease and maintains a streamlined workflow.

In the end, it all comes down to the kind of business you own, your budget range, and the purpose of the invoicing software. Choosing a software that pairs up well with your financial goals and demands is crucial so that your investment does not go down the drain. Read up our buying guide thoroughly, and you’ll find it much easier to come to a decision.

Note the particular features that make a difference, with significant emphasis on the distinguishing services of each software. The effectiveness largely depends on how you use the app, so make sure to choose an app with an enormous scope. Pair up the right balance of features with an affordable price, and you’ll find an ideal match.