Best Invoicing Software for Small Business

The best invoicing software makes it easier for you to accept payments. It should also be easy to learn. Let's see the top 8 options you can try out.

Managing invoices can be a hassle. Some clients don't end up paying, so you have to send reminders constantly. This can negatively affect your cash flow.

Not to mention, it can take time to move the money to your business bank account. And as a small business owner, you don't always have the time for delays.

But a good billing software may be able to help you out. It can save you a lot of headspace. Read on for your best options.

8 Best Invoicing Software for Small Business

A good invoicing software can streamline your process, reduce errors, and get you paid faster. Some are free, while some are paid but may have a specific feature you need.

Check out our 8 top picks below.

Zoho Invoice: for Freelancers

Zoho Invoice is best for freelancers or sole proprietors since it's completely free. You only need to pay for the add-ons you want.

But even though the software is free, you still get to access essential features. You can accept online and offline payments, track work hours, and set automatic payment reminders.

You can even save credit card information for recurring clients. You'll save a lot of effort and headspace this way.

Pros + Cons:

Features:
Aside from what was mentioned, here's a list of the other things you can do with Zoho Invoice:

• Customize professional invoices
  
• Send invoices from any device
  
• Upload expense receipts and categorize them
  
• Assign user roles and permissions for team members
  
• Manage inventory
  
• Generate business reports

Pricing and Processing Fees:
Zoho Invoice is free to use.^[1] You only need to pay for add-ons if you need them. Also, Zoho Invoice doesn't have its own payment processor. But it does work with Stripe, PayPal, and Square^[2].

Where it fell short:
Unfortunately, you are limited to sending 1,000 invoices per year. So if invoicing is your main form of payment, then make sure that this number is enough. You'll have to contact them directly if you need to send more.^[1]

When you've finally grown from a one-man team to a small company, it might be better to start looking at FreshBooks.

FreshBooks: for Small Businesses

CREDIT FreshBooks

FreshBooks works great for small businesses since you can pay for what you need based on your number of clients. Say you only have 5 regular clients. Then you can opt for the cheapest plan.

Also, unlike Zoho Invoice, you can send unlimited invoices with FreshBooks. You can create these professional invoices according to your brand.

Because FreshBooks is also an accounting software, you can invite your accountant to work with it. Your accountant can have up to 10 team members. They can then update your journal entries and chart of accounts for you.

Pros + Cons:

Features:
Here are the other things you can do with FreshBooks:

• Accept online payments
  
• Request deposits upfront
  
• Track work hours using FreshBooks Chrome timer or app
  
• Scan receipts from the mobile app
  
• Import expenses from your bank account

Pricing and Processing Fees:
FreshBooks offers 4 plans to choose from:^[7]

Here's how much each transaction can cost you:^[8]

Where it fell short:
Automatic billing should already be an essential feature. But FreshBooks have it as an add-on.

Also, FreshBooks can be expensive for a larger team. Aside from paying for more billable clients, you'll also be charged per user.

These limitations are solved with Square Invoices. You'll have unlimited users, customers, and invoices all with the free plan.

Square Invoices: Free Unlimited Invoices

Like Zoho Invoice, Square Invoices doesn't sacrifice its features even with a free plan. But unlike Zoho Invoice, you can send unlimited estimates and invoices with Square.

Have bundles of services to offer? You can offer multi-package estimates to your customers, too. That way, you can promote your less popular items with your most popular ones.

You can also set milestone-based payment schedules if you require multiple payments for a single job. And if you have special promos, you can offer Square gift cards.

Pros + Cons:

Features:
Here's what else you can do with Square:

• Store customer details in the Square Customer Directory
  
• Send SMS campaigns and personalized emails
  
• Integrate with eCommerce providers
  
• Download CSV files for bookkeeping

Pricing and Processing Fees:^[9]
Square Invoices offers a free plan that comes with unlimited invoices, estimates, and customers. This means you can scale your business with no problem. If you need more advanced features like batch invoicing, the Plus plan costs $20/mo.

The processing rates for both plans are: ^[9]

Where it fell short:
Unfortunately, Square Invoices doesn't come with a time-tracking feature. There are also no mileage tracking and team management features. That means you either get a separate app to track your work hours or risk inaccurate billing.

Also, although you can download CSV files with Square, there is a better option if you're looking for accounting features. Take a look at QuickBooks.

QuickBooks Online: Accounting Solution

QuickBooks Online is an accounting software with invoicing features. But unlike FreshBooks, it's best for larger businesses with a team of accountants and auditors.

You can customize invoices, set up milestones for multiple payments, and link your business bank account to import your expenses and categorize them.

A small business wouldn't really be able to maximize the features offered. It's not a free accounting software, so if you don't need all the extras, you can use the free invoice generator instead.

Pros + Cons:

Features:
Here are the other things you can do with QuickBooks Online:

• Create and send estimates
  
• Accept online and in-person payments
  
• Manage project profitability
  
• Generate business reports
  
• Manage tax deductions
  
• Manage inventory

Pricing and Processing Fees:
There are 4 plans to choose from with QuickBooks Online: ^[10]

Also, to process payments, you'll be using QuickBooks Payments. Here's how much it can cost you: ^[11]

Where it fell short:
If you have a large team of employees, the payroll add-on will add to the expenses. Plus, you lose convenience without a time-tracker. You're better off with Invoice Ninja for this feature.

Invoice Ninja: for Consultants

Invoice Ninja is a great invoicing software for consultants. Aside from sending unlimited invoices, you can also track billable hours all with the free plan.

You'll be able to manage tasks and projects, too, making it easy to juggle multiple things at once. Plus, you can have up to 20 clients, which can leave plenty of room for growth.

To make managing payments easier and more efficient, Invoice Ninja offers apps for different devices. You can download one for iOS, Google Play, MacOS, Windows, and even Linux.

Pros + Cons:

Features:
Other things you can do with Invoice Ninja include:

• Email invoices and quotes
  
• Accept online payments
  
• Accept deposits and partial payments
  
• Convert currency automatically
  
• Integrate with banks and sync transactions
  
• Track inventory and categorize vendors

Pricing and Processing Fees:
There are 3 plans to choose from with Invoice Ninja:^[12]

The processing fees will depend on what you integrate your account with. For example, Stripe's fees will be different from that of PayPal's.^[13]

Where it fell short:
Since there's no POS hardware available, you're really limited to taking payments through invoicing. If you want an all-in-one option, you're better off with others on this list.

Also, although Invoice Ninja offers features for enterprises, it may still fall short in that area. You can check out Invoicera instead.

Invoicera: for Large Businesses

Invoicera is packed with features that can help you manage your business globally. It might be too much for a small business. But it works great for a large, established company.

You can send and receive purchase orders and convert them into invoices. You can also integrate the software into your legacy ERP or CRM systems.

Because you'll likely have a huge team, you can assign different clients to your staff members. You can even set productivity benchmarks for everyone to encourage efficiency.

Pros + Cons:

Features:
Here are the other things you can do with Invoicera:

• Accept online and offline payments
  
• Set an invoice approval process
  
• Send invoices in different languages and currencies
  
• Set automatic payment reminders and automate late fees
  
• Offer group discounts and group tax options
  
• Track currency loss
  
• Generate business reports
  
• Manage accounts receivable and accounts payable
  
• Host the software on your own server^[14]

Pricing and Processing Fees:
There are 4 plans to choose from based on your number of clients and staff members. ^[15]

Also, Invoicera doesn't have in-house payment processing. But it works with over 30 international payment gateways.^[16] Some of these include 2checkout, Authorize.Net, Stripe, and PayPal. Be sure to check out their corresponding processing rates.

Where it fell short:
Unlike its competitors, you can't design your own invoices with Invoicera. You'll have to contact them to get one designed for you. It's more of a hassle to get your own branded invoices.

Also, you'll get limited clients and very limited staff members for lower-tiered plans.

If you don't want to spend $149/mo for unlimited staff and clients, check out Invoice2Go. It'll only cost you about 6 bucks.

Invoice2go: Unlimited Staff and Clients

Invoice2Go can be another good option for professional services. There's a time-tracker and appointment feature that can make your work convenient. You can also organize estimates, photos, notes, and contact information so you're not all over the place.

Aside from invoice templates, you can also use templates for receipts, business plans, and purchase orders. This can definitely save you time and help you focus on other areas of your business.

Plus, you can have unlimited staff, clients, and projects with Invoice2Go, even with the cheapest plan. The catch is you're limited to the number of invoices you can send.

Pros + Cons:

Features:
Here are other features you can get, depending on your plan:

• Customize and send estimates
  
• Accept online and in-person payments
  
• Free bank transfers
  
• Detailed insights on monthly payments
  
• Integrate with over 3,000 applications
  
• Export data to a separate accounting software

Pricing and Processing Fees:
There are 3 plans to choose from with Invoice2go: ^[17]

For payment processing, Invoice2go offers flat-rate pricing. The transaction fees are: ^[17]

Where it fell short:
You'll need the most expensive plan to send unlimited invoices and recurring ones. So if you opt for a lower-tiered plan and have regular clients, you'll have to manually create invoices every time.

Now, imagine manually creating invoices for every client or project. Not very convenient. You can try Harvest instead.

Harvest: for Project Management

Harvest is primarily a time-tracking software. Its invoicing features are only secondary to this. But unlike others on this list, it's the best for invoicing clients with complex projects.

It enables you to get an overview of how your team is doing and how your project is progressing. You'll even see who's getting overworked and underutilized, which means you can make arrangements as necessary.

That said, remote teams will benefit the most from it. It may also be overkill for a freelancer who's a one-man team.

Pros + Cons:

Features:
Although it's not exactly packed with invoicing features, there are still plenty of things you can do with Harvest.

• Track hours worked per task
  
• Send invoices based on the tracked hours
  
• Accept online payments
  
• Create automated reminders for work hours
  
• Review and analyze the profitability of projects
  
• Integrate with QuickBooks Online or Xero for accounting
  
• Integrate with business and project management tools like Asana, Slack, and Google Calendar

Pricing and Processing Fees:
There are 2 pricing plans to choose from based on the number of users and projects you have:^[18]

Similar to Invoice Ninja, Harvest won't charge you transaction fees for online payments. Instead, you'll have to use your Stripe or PayPal account to take these payments, which also means you'll be paying their respective processing fees.

Where it fell short:
Harvest is not packed with features that are available to its competitors. You won't have accounting features, POS hardware, and can't sync bank transactions, for example.

Not to mention, you only get 1 user account and are limited to 2 projects for the free plan. This is wayyy unlike Invoice Ninja's free plan, where you get loads of benefits.

Knowing your options, how do you actually take your pick?

How to Choose the Best Invoicing Software?

Invoicing software programs offer different solutions for managing your invoices. When shopping for the best one, here's a list of features you can consider:

• Invoice management
  Most invoicing software offer customizable invoices. If you have regular clients, make sure you can create recurring invoices, too. And if you're a freelancer, it helps if the software lets you invoice unlimited clients.

• Payment management
  A good invoicing software lets you accept online and offline payments. That way, you're not limiting your customers. To ensure they don't forget their dues, see if you can also set automated payment reminders.

• Expense tracking
  As small business owners, you have payments to receive, but you also have bills to pay. A good invoicing solution should have billing features that ensure you make payments on time. Being able to view your accounts payable will also help with cash flow management.

• Mobile invoicing
  Mobile apps let you manage invoices on the go. You can typically track work hours and mileage to send accurate invoices. Some apps even let you categorize business trips, which can help come tax time.

• Detailed reporting
  A detailed report can help you get an overview of your business. You get to have a bird's-eye view of the money coming in and going out. You also see which projects are making the most profit and which need to be let go.

A free billing software (like Zoho, Square and Invoicera) typically has basic invoicing features. If that's the only thing you need, then there's no need for extra costs or add-ons.

But all-in-one solutions (like Zoho and Quickbooks) can do more work for you. Some software even let you manage customers and employees. Choosing an option will really depend on what your business needs.

Methodology

You could be someone who wants something simple and direct. Or you could prefer all-in-one options. So, we considered invoicing software that are good for one or the other.

We took note of their features and identified what type of business they're most suited for. For some options, it was about their best strengths.

We also considered those with free plans and trials. That way, you can test them out first before committing to a plan. The best invoicing software has to be affordable or at least worth its price.

Frequently Asked Questions

How can I create invoicing for my business?
You can create invoices through invoice templates or automated invoicing software. An invoicing software typically offers more features like time-tracking and expense management.

Does Microsoft Office have an invoicing program?
Microsoft Office lets you create invoices from templates^[19]. But it doesn't have extensive invoicing features like FreshBooks or Zoho Invoice. You'll find invoice and bid templates for Word and Excel on Microsoft's website.

Is Excel or Word better for invoices?
Creating invoices through Word is easy in terms of flexibility. You can customize the design according to your brand with less effort. On the other hand, Excel is convenient in terms of calculation. You can include formulas to calculate costs automatically.

Bottom Line

The right invoicing software can lift so much work from your shoulders. You can automate invoicing, set late payment notifications, import receipt information, and so much more.

It can get costly with extra features you don't need. Comparing what your options offer can help you avoid those extras.

When looking for the best invoicing software, keep an eye on the core features, pricing, and processing fees. The cheapest option isn't always the best. So just make sure you're getting the most bang for your buck.

References