Introduction
Software for billing and invoicing allows freelancers and owners of small companies to keep track of the products and services they offer as well as the amount that clients owe. Creating estimates, keeping track of hours, and collecting payments are all automated online using the best alternatives.
The built-in invoicing tools of accounting software frequently provide all the functions you require. If you just need to manage expenses and create invoices, however, an invoicing-only tool can be a simpler and less costly option.
The top seven choices for small business invoicing software
1. Square Invoices: The best invoicing software overall
Why we selected it
Our best choice for invoicing software overall is Square Invoices because of its feature-rich free plan and simple design. The free plan offers options for advance deposit collection, limitless invoicing, and automated payment reminders. Batch invoicing and further customization features, such as changing field names, are available when you upgrade to its subscription plan. To ensure that your clients are aware of and comprehend your terms for payments, deadlines, and refunds, Square Invoices also enables you to submit contracts.
Pros
- All options include unlimited billing, estimates, users, contracts, and clients.
- Connects to the Square all-in-one payment system.
- Simple and easy to understand.
- Capacity to accept cash, cheques, ACH transfers, Apple Pay, Google Pay, and online and in-person card payments.
- Send continuing bills.
- Reminders for payments are sent automatically.
- Offers customers the choice to tip.
Cons
- Accepting online payments requires using Square’s internal payment processing.
- Auto-converting estimates into bills and custom invoicing elements are not available with the free plan.
2. FreshBooks: The ideal all-in-one accounting and billing software
Why we selected it
Invoicing software for independent contractors and creatives was the original purpose of FreshBooks. Its accounting features, such as online bank feeds and double-entry reporting, distinguish it from independent invoicing software, even if it doesn’t have a trial version like many of its rivals. Along with the online card, PayPal, and Stripe payments, the program also allows wire transfers for a nominal cost. In contrast to some of its rivals in the accounting application market, all of its plans come with the capability to track time, travel, and billable expenditures. If you’re a freelancer or solopreneur searching for a comprehensive accounting and invoicing solution with a modern mobile app, FreshBooks is a fantastic option.
Pros
- Communicate with customers using the FreshBooks smartphone application and receive alerts when bills are past due or have been read.
- Simple, adaptable invoicing features match those of more powerful accounting programs.
- In every plan, keep track of time and include billable hours in bills.
- All programs include weekday phone assistance.
Cons
- Only two users are included in the highest-tier Select plan ($11 a month for extra users), while lower-tier plans restrict the number of billable clients.
- Bank reconciliation, accountant access, and double-entry accounting reports are not included in the least-priced package.
3. Zoho Invoice
Why we selected it
Zoho Invoice is user-friendly and comprehensive. Using an app or web browser, you may monitor hours, costs, and items of inventory on a range of projects. After work is finished, you can send clients fully customizable bills and set up automated reminders via email for past-due payments. Although Zoho Invoice offers businesses free access to all of its features, the annual limit on invoices is 500. Invoicing features are included in the business’s accounting software, Zoho Books.
Pros
- Send 500 invoices annually at no cost.
- Through the portal, customers can examine their transaction history and pay invoices.
- Among the payment gateway connections are Square, PayPal, Stripe, and others.
- Attach receipts to expenditure reports by taking a picture of them.
Adding a timer bar to the home screen, sending invoices over iMessage, and adding new contacts by snapping pictures of their company cards are all made possible with this free iOS invoicing software.
Cons
- Restrictions on third-party connections beyond QuickBooks Online and other Zoho products.
4. Invoice Ninja: Best for flexibility in payments
Why we selected it
When processing online payments, Invoice Ninja offers you the freedom to select from hundreds of payment gateways, including Square and Stripe. It also lets you specify a minimum payment amount, request a deposit in advance from clients, and include taxes and a tip option on invoices. Customers can send money via ACH or make payments online. So long as you don’t have more than 20 clients, the trial edition is so powerful that you might never require an upgrade. The higher plans include more helpful features like mass invoicing. Only the most costly Enterprise plan allows for the addition of more users (at a cost).
Pros
- For a maximum of 20 clients, the free plan allows for limitless invoices.
- Give consumers the option to tip on bills or make incremental payments over time, and automatically shift credit card processing costs to them.
- Enables integration with over a dozen payment channels, such as Apple Pay, PayPal, Square, and Stripe
- Inventory is tracked as it is invoiced using an integrated inventory tool.
- The portal enables customers to examine their payment history and invoices.
Cons
- No direct connections to accounting or bookkeeping software.
- The cost of an enterprise plan goes up as the number of users increases.
5. Hiveage: Best for easy billing software
Why we selected it
Hiveage’s dashboard is user-friendly and makes it simple to create both recurring and one-time invoices. Even the free version of the billing software tracks time and expenses. Any plan can be used to collect payments online, but the most costly Plus plan is required to accept money offline in the form of cash, checks, and bank transfers. Through Zapier, Hiveage can also be integrated with project management, accounting, and CRM (customer relationship management) software.
Pros
- Up to 5 customers can receive limitless invoices under the free plan.
- Connects to twelve payment gateways, such as Square, PayPal, Stripe, and others.
- Give each kind of task a distinct billing charge.
- Use the Plus plan to direct customers to your own unique domain.
Cons
- No direct connections to accounting or bookkeeping software.
- There are client limits on all plans (the highest-level Plus plan has a 1,000 cap).
6. Harvest: Best for invoicing the projects
Why we selected it
Within the tools that project managers use, Harvest enables team members to keep detailed accounts of their hours worked. To ensure that teams are working effectively, managers can establish the project’s budget and keep tabs on hours and expenses. In terms of billing, Harvest provides user-friendly estimate, payment collection, and invoice tools along with useful features like automatic email reminders for clients who have non-payments. You can disable credit card payments through Stripe if you’re worried about processing costs for credit cards piling up. Rather, your bills will offer them the choice to pay exclusively through an ACH transfer.
Pros
- Provides a free plan that can only be used for two projects.
- Sophisticated time-tracking capabilities, such as integrated Google Calendar, Asana, Slack, Trello, and additional project management applications
- Show billable hours on bills by project, person, or task.
- Use the smartphone app to take and upload pictures of billable cost receipts.
- Connects with accounting software like Xero and QuickBooks Online.
Cons
- Customization possibilities for invoices are restricted. Company logos cannot be added to invoices by free users, and Harvest only provides two formats.
- Only PayPal and Stripe are able to integrate payments.
7. Invoice Home: Top choice for online free invoice templates
Why we selected it
For a fair monthly price, you may send an infinite number of bills to an infinite number of clients, and Invoice Home provides a vast collection of free invoice designs. Invoice Home is a solid option if all you require from billing software is the capacity to generate a large number of invoices rapidly and facilitate online payment for your clients. If your monthly invoice total is under one thousand dollars, you are allowed to utilize the invoicing software for free.
Pros
- Numerous editable invoice templates are available.
- Provide a free monthly invoice to a maximum of $1,000.
- Stripe, PayPal, and Authorize.net are examples of payment gateway integrations.
- No agreement and no penalty for cancellation.
Cons
- Lacks extra features like the ability to manage expenses and time.
- No direct accounting software integrations.
Other applications to think about for billing and invoicing
After reviewing fifteen different invoicing software options, we found that some of them are still excellent options that merit consideration. Should the choices on this list above not meet your company’s invoicing demands, take a look at one of the remaining options.
8. Xero: Another excellent option for integrated accounting and invoicing
You can generate personalized invoice templates with Xero, give clients automated payment reminders, and take payments by card, Google Pay, Apple Pay, or ACH transfer. In order to access time and mileage monitoring or submit an expense claim, you must be a member of the Established plan. In the realm of accounting software, Xero is notable for being scalable and supporting an infinite number of users across all plans. For small entrepreneurs who need to grant permission to use the program to several staff members, this makes it an excellent choice.
9. Wave Invoicing: Another excellent alternative for free billing software
Wave is a straightforward accounting & invoicing system for independent contractors, sole proprietors, and micro-businesses that primarily accept invoice payments. To add expenses to invoices later, there isn’t a simple method to indicate them as chargeable. A reimbursable expenditure account is a workaround, but it’s not as practical as the billable expenditure features found in other accounting programs.
10. Hopscotch: Perfect for getting invoice funds early
Similar to invoicing finance, Hopscotch’s Flow feature allows you to access invoice cash prior to your client making payment. This type of service is not anything you should utilize with every invoice because it is paid for. On the other hand, it might be a useful temporary fix for cash flow problems if you have faith that your clients will pay their bills on time. The program also enables you to link your bank account, remind customers to make payments, and charge them for credit card usage.
How to pick the top billing software
The following elements might assist you in choosing the best invoicing software for your small company.
1. Expandability
Remember to consider more than simply the present situation. The majority of invoicing software sets prices on the number of clients you have, thus expanding your business may result in increased expenses. Choose software that can help your business plan for the next year without forcing you to upgrade to a significantly more expensive tier.
2. Utilization ease
For prospective clients, the majority of invoicing software providers provide free trials. To ensure you know how to effectively utilize the capabilities you require, make use of them. If you have clients overseas and need assistance with several currencies, pick payment gateways that can handle your client’s needs. Also, spend some time testing the product from the client’s perspective.
3. Integrating software
Seek out an invoicing solution that interacts with any other software you currently use. Zapier is an intermediary program that users must set up on their own, but many of the alternatives on this list interface with other apps. Before committing to one application, make sure to test these integrations.
You might be able to combine several of your assignments into one location with the correct invoicing software. For example, if you now use time management software, think about moving to an invoicing program that has built-in or native connectors that can also accommodate those demands.
4. Cost
The majority of invoicing software applications operate on a “freemium” model, which can make cost projection challenging. A change in levels of staffing or an increase in your clientele could push you into a new price range. Additionally, certain crucial functions may be additions that cost extra. However, if cost is a concern, there are many free invoicing software choices.
How we identified the top software for invoicing
We took into account the following attributes while evaluating the top invoicing applications for small businesses:
1. Abilities for invoicing
Look for features like online payment acceptance and automated payment reminders, invoice personalization choices, a dashboard to conveniently monitor invoice status, and certain reporting capabilities. Most or all of the capabilities of standout products are available via a mobile app, and they also make it simple to convert estimations to bills.
2. Affordability
The majority of the software plans on our list have monthly prices under $20, and several of them are free.
3. Integrations
It is ideal for independent invoicing software to interface directly with well-known accounting programs, such as Xero and QuickBooks Online. Additionally, some of the top-rated items on our list provide direct interfaces with inventory management, CRM, e-commerce, and other software programs.
The availability of customer service, pricing clarity, and whether or not paid products come with a free trial were all taken into account.
Frequently Asked Questions
1. Do invoicing and billing software have the same functions?
Although invoices and bills are not the same thing, they are frequently used interchangeably. They both say that money is owed, but bills are usually paid immediately, whereas invoices have conditions that specify how long a client has to pay in full or in part. Bills usually provide more broad pricing and tax information, but invoices also act as a thorough, itemized record of the items and/or services that have been exchanged, along with the expenses per line item. You may hear clients referring to an invoice you sent as their “bill” regardless of whenever payment is due.
In that regard, unless your company is subscription-based, billing software and invoicing software are basically the same thing. Under such circumstances, you may search for subscription software for billing in particular.
2. Which billing software is ideal for small businesses?
Your budget, the features you require, the kind of business you run, and whether you offer goods or services will all influence the most suitable invoicing software for your small company. Project-based companies, for instance, might require more detailed billing information than retail companies, such as billable hours per job or individual.
Consider the beginning and end of your charging procedure. Perhaps it begins with a quote before moving on to the recording of billable hours and expenditures. Once an invoice has been created and sent, you may send your client automatic reminders to pay and then take their money online. Every stage will be supported by your ideal invoicing software.
3. Is it secure to take payments for invoices online?
If you want to take online payments, make sure that the payment processor you use complies with PCI, which means it adheres to the data security guidelines set by the world’s top payment companies.
4. Which functions ought to be included in invoicing software?
Look for fundamental features including the ability to charge for time and expenses and give estimations when selecting invoicing software. You should confirm that the invoice templates for each product have the fields you require. Invoice fields typically include things like sales tax as well as due dates.
The option to create multiple billable rates based on the assignment, a client portal, and connectors are further aspects of invoice software to take into account. It is ideal for your invoicing software to integrate with your payment gateway and exchange data with the accounting software.
5. Is the cost of invoicing software high?
Although many products provide free memberships, independent invoicing software may cost anything between $10 and $49 or more each month. While some invoicing software requires an upgrade if you wish to send an infinite number of invoices to an infinite number of clients, other software costs per user.
The least expensive solution, though, would be to continue using the invoicing component of your current accounting software rather than purchasing a new one.
