12 Best Invoicing Software for Small businesses
In this post, we will discuss the best invoicing software for small businesses.
What is invoicing software?
Online invoicing software is a tool that generates a bill for products or services provided to a client. The software creates an invoice that you can deliver by mail or other methods.
These apps often include billing integration, so you can get paid faster as your client receives the proper tools from making payments within the system.
Although you can create a simple invoice template in Excel or Microsoft Word, an invoice system will automate the whole process and will save you a lot of time (and money)
Choosing the best invoicing software for your small business can be one of the most important decisions you make, as it can make running your business more accessible and more efficient. The right invoicing software for you depends greatly on what your business needs today and will need in the future as your business grows.
In this article, we’ll know the 12 best invoicing software platforms for small businesses, mid-sized businesses, freelancers, contractors, consultants, accountants, and enterprises that we consider the best.
We’ll only focus on invoicing and billing since some platforms are complete accounting software.
Wave invoicing is a 100% free platform with no limits and no hidden fees. This software includes invoicing, accounting (with a fully functional double-entry system), and receipt scanning.
All your invoicing and payment information automatically syncs with the free accounting system included in your account.
Wave is easy to set up with a straightforward and friendly interface. Invoice templates look professional and clean, and you can customize them for free with drag-and-drop line items.
A free mobile app for receipt scanning works even if you are offline, and then incorporate receipts into the accounting reports.
You can run many businesses with one account and invoice in any currency. It’s easy to set up automatic payments for recurring invoices, the system will email an automatic remainder for costs. In our opinion, Wave is one of the best invoicing software for small businesses.
Wave reports are somehow basic, and if you require custom recurring billing may be difficult ( if not impossible) to set up.
Wave charges 1% per bank payment transaction and 2.9% + $0.030 per credit card transaction if you wonder how they make money.
Best for Small businesses, freelancers, and solo entrepreneurs.
PayPal is a giant worldwide payment processor with 346M+ users and claims that you can create and send an invoice in minutes from nearly any device.
You can send the invoice via email or using a shared link.
The customer doesn’t need to have a PayPal account; he can pay with credit and debit cards. And with PayPal credit, the client gets financing for six months on purchases of $99 or more. This works in 200+ countries around the globe and is a decisive advantage if you work with customers from other countries.
This platform provides 10+ pre-made templates that you can customize with your logo, contact information, and custom fields. It is also possible to track payments and set reminders. Full mobile support allows you to send invoices from your mobile on the go.
PayPal argues that their invoicing software can help get paid faster and that 78% of payments are made within one day the invoice is sent.
There’s no setup or monthly fee for online invoicing because the only cost associated is a 2.9% + $0.30 fee per transaction. This is a good solution for anyone to keep costs under control.
Best for: Freelancers and small businesses.
This is a platform focused on freelancers and independent contractors. Good time tracking, proposals, task management, expense tracking, and invoicing. A simple and robust system that manages invoicing for a meager price or even for free.
They offer a completely free plan for only one active client, but you must pay $18/month for unlimited clients and remove And. Co-branding.
When a client views and pays an invoice, you’ll get a notification, so you are up to date with your payment flow. But when an invoice is overdue, there is no payment reminder notification, and you must set it manually.
Invoicing and contract customization is not very functional, but this app does its job overall.
The mobile app is functional and intuitive. Allows track time, create, send invoices, accept payments, and see reports.
And.Co supports multiple currencies and manages payments through PayPal and Stripe. A client can sign and approve your proposal, and then you can accept payments straight from the document.
And.Co enables integration with several platforms, such as Slack, Shopify, G-Suite, and Zapier.
Best for: Freelancers, entrepreneurs.
This solid online solution provides tools to manage invoicing billing and accounting.
The whole process is accessible through a very functional dashboard.
Invoicely supports many countries and currencies and provides an easy way to add several taxes. If you work with overseas clients, this is an excellent feature.
Their free plan allows up to 5 invoices per month and three saved clients, with essential features and only PayPal integration, but still may be a good fit for freelancers.
If you need unlimited invoices and customers will have to move to a higher plan (starting at $9.99/month), you can track time and expenses and make estimates. In these plans, you can remove branding and add team members.
The client can receive a PDF file or a link with a payment option and send payments through PayPal, Stripe, and ACH.
You can create and send invoices and estimates track time, expenses, and mileages with the mobile apps. According to users, mobile apps are not the best, so you may end up opening your mobile browser to work in the field.
With only three integrations ( PayPal, Stripe, and Authorize.net), it’s hard to find where Invoicely stands out because you will need to use more than one software app to run your business.
Best for Small businesses and freelancers.
Invoice2go is easy to use, solid, and fully functional mobile support. This software does an excellent job on expense and time tracking, estimates, reports, and online payments.
With the mobile app, you can create and send invoices and estimates on the go, receive payments, and get notifications.
The app is outstanding, and you can manage almost every platform feature. So, if you spend most of your working day away from the office, this is a crucial point to consider.
Invoice2go provides several templates to customize your business logo for a complete branded design. You can create an estimate, and the client then can view, comment, accept or reject it on the platform.
You can send the invoice by email, WhatsApp, SMS, and even Facebook Messenger.
To manage payments, this platform integrates with Stripe and PayPal. Invoices include a payment button so your client can pay with a single click, and you get paid faster. The system also updates invoices payment information after payments.
The lower plan ($19/month) allows up to 50 invoices and five clients, a good fit for many freelancers and small contractors. But in this plan, you cannot generate estimates, time tracking, and payment receipts.
This pricing structure is not the best compared with other similar apps, like Zoho or PayPal.
Invoice2go offers few integrations and doesn’t support live bank feeds, a feature almost many accounting software offer.
Best for: Small businesses, solo entrepreneurs, freelancers, and small contractors.
This is an excellent option to consider if you are under Zoho’s ecosystem.
This software features invoices, payments, estimates, expense tracking, and time tracking. And it’s simple to set up and easy to use.
Zoho invoicing software allows to create and send professional invoices. You can easily send automatic payment reminders and accept payments online.
With real-time invoice reports, you can know how your sales are going to track expenses, payments, and taxes.
With Zoho, it’s easy to get paid; you can set automatic payments reminders, so you don´t have to manage payment dates elsewhere.
You can create professional-looking estimates, so your customer knows prices and the scope of work. These estimates can turn into invoices later and make any necessary changes before starting the invoice.
Zoho provides a comprehensive arrangement of templates, fully customizable and multilingual support, and tax management in certain countries.
The client portal is a vital feature of this platform where the client can access estimates and invoices, and you can choose to share other helpful information. You can collaborate and get feedback with the client through this portal, avoiding thus the need for emailing.
In Zoho free plan, you can bill up to 5 customers. A distinctive characteristic from most competitors is that the free program has almost the same element of higher plans, differing only in the number of customers you can invoice.
Zoho has integrations with G-Suite, CRMs, and other apps, but users often complain the integrations are difficult to use.
Best for Small businesses, non-profits, and freelancers.
Hiveage claims to be “easy online invoicing loved worldwide.” This simple and robust online invoicing and billing software helps with invoicing, time tracking, expense tracking, and quoting.
You can create manual invoices automatically and auto-billing recurring invoices. With Hiveage, you can prepare estimates, get acceptance from customers online, and quickly generate invoices from quotations.
This platform allows you to log the hours you worked on clients by tracking them in real-time and setting rates according to different tasks. From these tasks is easy to generate estimates and invoices.
You can create categories for the most common expense types within the mileage tracking section and add expenses entries based on them.
Hiveage is a strong player when it comes to payment integrations. Supports multiple currencies and more than a dozen payment gateways, including Stripe, PayPal, WePay, Coinbase, and more.
Payment options are added straight into invoices, making it clear and easy for your clients to complete their payments.
Free plan up to 5 clients and unlimited invoices, for financial reports, upgrade to $16/month.
Mobile support is good but somehow limited because not every feature of the desktop software is available on mobile.
Best for: Freelancers and small business owners.
Invoicera is a complete suite for online invoicing, project management, client and staff tracking, subscription billing, and task management.
With Invoicera, you can customize invoice templates with your logo and brand colors.
It takes a pair of minutes to create an estimate with Invoicera, and you can convert estimates to invoices. The client portal allows clients to pay, accept, reject, and comment on estimates.
Regarding mobile support, users have reported good usability of the mobile app with all core product features.
Invoicera has no live bank feeds, which is a valuable feature that has almost any invoicing system. So, if you need to know how money is flowing in real-time, you will have to track it manually.
This platform offers a free basic plan that allows up to 3 clients with basic capabilities. If you have only three clients, this plan may be acceptable but lacks API access and password PDF protection. The next plan for $15/month for up to 100 clients may suit a small business and offers good value for the money.
Invoicera provides multi-currency support and multi-language support. This software stands out, integrating with 31 payment gateways, but it is difficult to explain why there are only four third-party integrations.
Best for: Freelancers, small businesses, and mid-sized businesses.
Invoice Ocean is a cloud-based platform based on simplicity and ease of use.
Invoice Ocean supports 25 languages and all world currencies. You can define tax rates for specific countries.
Recurring invoices are issued automatically at a chosen date and time, and you and your client receive an email notification.
A payment widget allows clients to make quick payments with the payment button within the invoice form.
The Mobile app makes it easy to capture documents and file them as expenses and generate and send invoices.
You can email invoice documents directly to your clients from the app, and the recipient can view the invoice online or download it as a PDF.
Free plan up to 3 invoices per month and unlimited products and clients.
Best for: Freelancers and small businesses.
Invoice Ninja was built to provide freelancers and business owners with a complete suite of invoicing and payment tools.
This open-source platform offers invoicing and payments, proposals creation, expenses, ors tracking, time tracking, and projects.
You can set up recurring invoicing and payment notifications for a custom branded invoice design.
Invoice Ninja has 40+ payment gateways, providing complete flexibility with bitcoin, ACH, and partial payments. They also offer integration with 1000+ apps like Slack, Gmail, and more.
Invoice Ninja claims that mobile support is fully functional and that creating and sending an invoice from a mobile device only takes a pair of minutes.
The basic plan is free, providing you work with 100 clients and unlimited invoices and quotes, plus many features rarely seen in this type of platform. This is an excellent choice for businesses with few clients but still need a solid invoicing system.
This software features 30+ language support and several currencies.
Best for: Freelancers and business owners.
Featuring invoices, expenses, time tracking, accounting, projects, estimates, payments, and reports, FreshBooks is a well-known player in the accounting business. For sure one of the best invoicing software available.
FreshBooks offers mobile apps that are easy to use, but they don’t resemble the platform’s full functionality.
Templates are fully customizable and look professional, a key feature not available in every invoicing software.
FreshBooks features estimates and proposals. A proposal is a more detailed estimate and can be signed and accepted by the client. Both forecasts and proposals can be turned into invoices.
FreshBooks plans start at $10/month, up to 5 billable clients, unlimited invoices, sales tracking, and reports.
Best for: Freelancers, small businesses, mid-sized businesses, and entrepreneurs.
Xero is a solid player in the accounting business. They are designed for small businesses and accountants. This cloud-based platform automates your accounting tasks and related processes.
This is a complete suite and not only an invoicing system. Xero offers a double-entry system, fixed assets and inventory management, purchase orders, projects, quotes, bank reconciliation, bank connections, time tracking, multi-currency accounting, and expense tracking.
With a polished and customizable dashboard, this software is easy to use, but you’ll need some time to explore and learn all the features.
Surprisingly, Xero offers a single invoice template and the same template for quotes. You can create your templates and customize them, but any invoicing system in the market today has a minimum set of templates to choose from.
You can create quotes quickly using the contact, inventory, and pricing information. Then you can turn quotes into invoices and receive updates when they are opened, accepted, or rejected.
Xero features full mobile support, and mobile apps are fully functional.
If you use an online payment service, Xero adds a pay button with your invoices allowing your client to pay online instantly.
Thanks to the multi-currency support, you can get paid in 160+ currencies. All foreign transactions are converted into your local currency in real-time, but you can also enter the exchange rate manually.
The Xero Marketplace provides 700+ integrations, including financial services, CRM, inventory, reporting, payroll HR, and more. This is a massive advantage of Xero in terms of business process management.
The starter plan costs $20/month and allows you to send 20 invoices and quotes, but you must pay extra for projects, expenses, and additional users.
Best for small and medium-sized businesses.
How to choose the right Invoicing Software?
Finding the best invoicing system can be tough with an overcrowded market and many option challenging follow these simple steps to fine-tune your options:
1-Number of clients: Think about how many clients you have today and how this number could increase in the near future.
2-Number of invoices: How many invoices you create per month will determine the plan you have to choose,
3-Business growth: Note that you can shift plans as your business grows with specific platforms.
4-Automation: Important for recurring billing, payment reminders, and late fees.
5-Payment collection: A pivotal point to consider; an invoicing platform must have a billing solution integrated and many payment gateways available.
6-Mobile support: Not essential but essential if you spend most of the day out of the office.
7-Languages and currencies: If you work with overseas clients, this is a non-negotiable item.
8-Integrations: When you need some advanced features, you probably have to integrate the invoicing software with your CRM or accounting system.
Invoicing is a core process of your business. There are complete accounting solutions which include invoicing (FreshBooks, Xero, Wave ) and invoice and billing solutions( PayPal, Zoho)
Since not every business needs a complete solution, you must choose the right system for you, and we’ve written this guide to help you choose the best.
If you also need to evaluate proposal software, check this post 12 Proposal Software Tools (Paid and Free) + Free Templates.
Most of these offer free trials, so the only cost you have is investing some time until you find the best for your business.