6 Best Invoicing Software for Small Businesses

Best Invoicing Software for Small Business

Did you know that invoicing software can do much more than create and send invoices? 

Some invoicing software enables you to manage your entire business process. Such as creating new project estimates, recording your working hours, tracking what goods and services you provide to which customers, how much each one owes, and when payment is due. 

But which invoicing software is right for you?

Your decision depends on a couple of things, like your budget, business size, industry, and any specific services you need to run it successfully. 

To help you choose, I’ve listed six of the best below.

They’ve been carefully selected by their ease of use, integration abilities, additional features, and price to remove the guesswork and help you get the right invoicing software for your business.

Managing a new business requires the right tools, this is one of the most important steps when starting a new business. So read on!

FreshBooks’ goal was to create an online invoicing and accounting software system that makes financial record-keeping easy for small business owners with zero accountancy experience. 

They achieved it and more, and while their service is beginner-friendly, its level of detail will satisfy the most demanding accountants.    

FreshBooks serves its users by providing an all-in-one accountancy, invoicing, and admin automation service that simplifies their bookkeeping and billing process.

Sure, you can use FreshBooks to create and send client invoices. Also, its powerful capabilities combine customization and efficiency, allowing you to change your invoice designs and add elements. 

But additional features like double-entry accounting reports, expense tracking, project management, report viewing, and the ability to add your accountant to your team give it the professional edge.

Pros

  • Integrates with many other software apps
  • Includes automated payment reminders
  • Enables you to add discounts and taxes
  • Automatically updates when clients view or pay an invoice 
  • Has a recurring invoice & auto payment system
  • Easy-to-use accountancy and bookkeeping features
  • Provides transparent, easy-to-understand reporting
  • Offers a helpful time-tracking tool for anyone providing hourly service

Cons

  • There’s no free option
  • Cheaper invoicing software is available
  • Adding team members costs extra
  • The mobile app has limited functionality
  • Template customization has limitations

Price

  • $15 monthly for up to 5 billable clients with unlimited invoices.
  • $30 monthly for up to 50 billable clients with unlimited invoices.
  • $55 monthly for unlimited clients, invoices, and other features.
  • Custom pricing options include unlimited clients, invoices, and additional features.
  • $10 monthly for every additional team member.
  • Subscribe annually, and you’ll save 10%.
  • There’s a 30-day free trial. 

Pro tip:

FreshBooks accounting software suits independent contractors, freelancers, and small business owners who need a user-friendly professional-looking accountancy software package. However, the lack of inventory accounting can make it unsuitable for large-scale businesses in wholesale or retail.

Are you looking for free invoicing software before you jump into the deep end and sign an annual subscription?

Zoho Invoice could be for you; it offers free automation and customizable invoicing solutions that suit most small business scenarios. 

You can set up automatic payments and recurring invoices, track hours or tasks, and receive field updates and notifications on various projects using its app or browser. 

Zoho Invoice also lets you create client estimates, track your (and employee’s) task hours, add expenses, and update your invoices. Also, as your clients have password-protected access to view their estimates and payment history, it helps remove misunderstandings.

The easy-to-use platform includes customizable invoices, automated emails, and late payment reminders. It is an excellent choice for business owners who want to streamline their workflow while saving time and money.  

Pros

  • All the features are free.
  • You can set up recurring invoices and payment reminders.
  • Invoices are in several currencies.
  • It integrates with many other online services like Stripe, Office 365, Slack, QuickBooks, and G Suite.

Cons

  • Most integrations only work with Zoho products like Zoho CRM and Zoho Books. 

Price

It’s free!

Pro tip:

Perfect for start-ups on a budget who need more time before committing to a paid plan. The only downside is that you might need developer skills to customize the invoices. 

Square is best known for its secure credit card point-of-sale (POS) systems that help millions of entrepreneurs run their businesses, make in-house sales, and get paid faster. 

But their invoicing software capability is also a perfect match for product and service-based businesses.

For example, Square enables you to create customized invoices, schedule ongoing billing, and track your client’s invoice status, all in real time. Their one-click payment system makes it simple for customers to pay by phone, making it a fast and efficient invoicing service. 

Pros

  • Offers a free invoicing software plan
  • Easy to set up
  • Can create, send, and track unlimited invoices online and via its mobile apps
  • Have unlimited clients 
  • Install automatic payment reminders and recurring invoices
  • Tracks your invoices in real-time
  • The one-click payment option accepts most payment types 
  • Integrates with most other time-tracking and inventory software
  • Includes a client portal

Cons

  • Flat-rate transaction fees quickly add up
  • Add-on services are costly
  • Cheaper credit card transaction companies are available
  • The basic invoicing package doesn’t track time and expenses
  • The invoice customization has limitations
  • Gets some critical reviews regarding customer support

Price

  • Free
  • Plus Plan-$20 monthly for extra invoicing features.
  • Regardless of the plan, every Square invoice has a 2.9% + $0.30 processing fee.

Additional Fees

  • Online paid invoices cost 2.9% plus 30 cents per transaction.
  • Tap, swipe, and dip payments cost $2.6% plus 10 cents per transaction.
  • Card-on-file payments cost 3.5% plus 15 cents per transaction.
  • ACH payments cost 1% per payment with a maximum of $1 per transaction.

Pro tip:

Square Invoice suits service and project business owners who want to centralize invoicing and take payments from anywhere‌. However, it can become expensive, as they charge a percentage of every transaction. 

Now for another free/low-cost invoicing software that gives small business owners and freelancers access to high-quality accounting services, Invoice Ninja is a great option.

Invoice Ninja offers a free plan that includes unlimited invoices for up to 20 clients and access to several features that make everyday business account management run like clockwork.

Features include time tracking, receiving deposits and discounts, and adding taxes to your invoices. 

Pros

  • Free invoices for up to 20 clients 
  • Paid plans include unlimited invoices and clients
  • Can create quotes
  • Includes quotes and a time tracker you can convert into invoices
  • Integrates with over 45 payment gateways and accepts payment in foreign currencies, including cryptocurrency
  • Integrates with many partners and over 1,000 apps

Cons

  • No phone support
  • No automatic integration with bookkeeping or accounting software 

Price

  • The free plan gives you unlimited invoices for 20 clients. 
  • Ninja Pro costs $100 annually and includes unlimited clients/invoices and additional features.
  • The enterprise plan costs $140 annually and includes unlimited clients/invoices, 2 users, and all additional features.

Pro tip: 

Perfect for freelancers who work with fewer than 20 clients from multiple countries. But for a complete invoicing and bookkeeping solution that integrates with other apps automatically, FreshBooks might be a better solution. 

We know QuickBooks for offering excellent accounting tools, and its invoice software doesn’t disappoint. You can customize and automate your invoices, track and add billable hours, duplicate invoices to save time, and send them to multiple customers. 

QuickBooks is your go-to invoicing software solution when the devil is in the details as it also offers bookkeeping services that provide detailed reports and insights on invoicing, which is accessible through the dashboard and makes it easy to get information fast.  

Pros

  • Unlimited clients and invoices with all plans
  • Invoices integrate with the QuickBooks accounting system
  • Customizable reports
  • Access to QuickBooks accountancy tools
  • Sales tax tracking and calculation tool

Cons

  • More expensive than other invoicing software
  • The interface can be hard to navigate
  • Potentially expensive for small and start-up businesses
  • No telephone customer support option 

Price

  • Simple start plan: $30 monthly/one user and includes sales tax features
  • Essentials plan: $55 monthly/3 users, includes tax features, and you can add time tracking and project expenses to your invoices
  • Plus plan: $85 monthly/5 users, includes all essential plan features, and you can track inventory
  • Advanced plan: $200 monthly/25 users, includes all plus-plan features, extensive reporting abilities, and a dedicated customer service support team

New users receive 50% off for three months or a 30-day free trial.

Pro tip: 

Suits e-commerce businesses as it integrates with most e-commerce platforms. However, only the Plus plan offers accounting, time tracking, and inventory management features. 

We’ll finish with an easy-to-use, cloud-based invoicing software that provides everything you need to send invoices and receive payments. 

You can use the Hiveage free plan and user-friendly dashboard to create one-time or recurring invoices and track expenses, time, and mileage. It also integrates with project management, CRM, and accounting software via Zapier.

And as Hiveage is cloud-based, there are no downloads, and you can access it online wherever and whenever you need it. 

Pros

  • Includes a free plan allowing you unlimited invoices for 5 clients
  • A simple-to-use system that requires no previous invoice software knowledge
  • Integrates with several payment gateways

Cons

  • Required to use Zapier to connect and integrate with the software systems for payroll processing and bookkeeping 

Price

  • Free plan: Provides unlimited invoices for 5 clients
  • Basic plan: $19 monthly, includes unlimited invoices for 50 clients
  • Pro plan: $29 monthly, includes unlimited invoices for 250 clients and access for 5 team members
  • Enterprise plan: $49 monthly, includes unlimited invoices for 1,000 clients and access for 10 team members 

You can save 17% by subscribing to their annual plan.

Pro tip: 

An excellent choice for freelancers and small businesses that need easy-to-use invoicing software. The lack of in-house direct integrations can take some time to navigate.

Conclusion

The best invoicing software for your small business comes down to your daily needs.

Many freelancers and small business owners might find free and low-cost invoice software options more than adequate. However, those dealing in large-scale inventory or with several employees might need those additional accountancy features provided by the paid versions. 

 

Ultimately, the invoicing software you choose should make your life easier and help you get paid on time, every time.

Disclaimer

The information provided on this page is for information, educational, and/or editorial purposes only. It is not intended to indicate any affiliation between Tailor Brands and any other brand or logo identified on this page.