7 Best Invoicing Software for Small Businesses

QuickBooks Online stands out with its exceptional invoicing features, which is one reason why it’s our best small business accounting software. Its invoices are extremely customizable—you can upload your logo, change the layout, add custom fields, and more. Additionally, you can customize invoices based on your niche. For instance, law firms can set up additional fields for case numbers and retainer amounts, while construction companies managing long-term projects can set up progress invoicing when they have the Plus or Advanced plan.

After sending an invoice, you can track the status in real time, helping you ensure that the invoice gets paid on time. You can even set up automatic reminders to alert customers of overdue invoices. Additionally, unlike any other bookkeeping and invoicing software we’ve reviewed, it’ll calculate the sales tax rate automatically to apply to your invoice based on the customer’s address. It then tracks your sales tax collected by jurisdiction and helps you file required returns.

Standout Features

• Choose from different templates and customize invoices by adding your logo, changing colors, and including personalized messages.
• Track all of your business activity with the leading small business accounting software in the US
• Set up invoices to send on a scheduled recurring basis; this feature is particularly helpful if you have multiple clients that you bill monthly

Use Cases

• Small businesses in general: QuickBooks Online can be customized to different kinds of businesses. My most recommended plan, Plus, can provide you with all the necessary accounting features for your business, including inventory management and time tracking.
• Multistate retailers: QuickBooks lets you collect, track, and remit sales taxes across multiple jurisdictions based on the customer’s address.
• Ecommerce businesses: It has direct integration with popular ecommerce platforms for a seamless transfer of ecommerce data to your accounting system, making it our leading ecommerce accounting software.
• Service-based business: Employees can track their time spent on customers and projects. Then, with a couple of clicks, the time entered can be transferred to an invoice when the customer is billed.

In my case study, QuickBooks Online stood out for its exceptional invoicing capabilities, particularly in customization and general invoicing features. Its ability to let you create customizable invoices and implement features like recurring billing makes it an excellent choice if you need to handle regular payments, such as equipment rentals or subscription-based services.

However, I couldn’t award a higher mark for pricing, as QuickBooks Online is more expensive than many competitors. While the platform is user-friendly, its extensive feature set could present a learning curve for some users.

Another drawback I found lies in customer support—direct phone access to the support team is only available for Advanced users. For other plans, you’re required to submit a ticket and wait for a call back, which can be inconvenient, especially when needing to address time-sensitive issues.

While I usually recommend integrating invoicing with your accounting system, I think Invoicera is a great option if you’re looking for a standalone solution. That said, if Invoicera’s lack of accounting functionality doesn’t work for you, I recommend QuickBooks Online or FreshBooks instead.

What impressed me most was Invoicera’s invoicing customization. You can choose from seven templates, create your own, or even request a fully customized template based on your specifications. It also lets you schedule invoices, send recurring invoices, set reminders, and charge late fees, making it incredibly flexible.

Standout Features

• Get a dedicated client portal where your customers can view invoices, access project updates, and securely handle payments; it’s a great way to keep clients in the loop and streamline communication.
• Enjoy A/R and A/P tracking in one dashboard, making it easier to stay on top of pending payments and vendor obligations
• Fully personalize your invoices to match your brand; from adding your logo and choosing colors to selecting fonts and layouts, the customization options help make your invoices look professional and unique

Use Cases

• Companies looking for standalone invoice software: Invoicera is an invoicing and billing solution for businesses wanting dedicated software for A/R and A/P. It also integrates with multiple accounting software, like QuickBooks Online, so it will be easy to transfer data to your bookkeeping system.
• Project-based businesses: If your business invoices on a project basis, Invoicera streamlines the process by letting you create and manage projects and assign them to customers or staff. You can also use it to log project work time to bill your clients.

In my assessment, Invoicera stood out for its invoicing features and customization options, nearly acing both criteria. If you deal with complex billing workflows, it’s a great choice because it lets you set up customized invoice approval workflows. This feature helps streamline the process of reviewing, authorizing, and approving invoices within your team before sending them to clients or customers for payment.

That said, I think Invoicera could improve its pricing by offering a free plan or discounts for new customers, as other platforms like Wave and Square Invoices do. I also found Invoicera less user-friendly in some ways, as it’s not a full bookkeeping solution and requires integration with accounting software like QuickBooks Online to handle broader financial management tasks.

FreshBooks offers invoicing features like QuickBooks Online but with a focus on solo business owners and freelancers. Since all plans include only one user, it’s a better fit for those managing their own operations. Its intuitive interface makes it user-friendly, even for those without accounting experience. FreshBooks allows you to create recurring invoices, accept online payments, calculate late fees automatically, and print lists of outstanding invoices. It connects with your bank to import transactions, reconcile accounts, and generate basic financial statements like balance sheets and P&L statements.

However, when it comes to invoicing across multiple states, FreshBooks requires manual setup of sales tax for each state, whereas QuickBooks Online calculates it automatically based on your customer’s location. If your business operates in several states, this difference might make QuickBooks a better choice. For a detailed comparison, check out our QuickBooks Online vs FreshBooks analysis.

Standout Features

• Monitor outstanding invoices and set up automatic, friendly reminders to encourage timely payments from clients
• Create detailed estimates and seamlessly convert them into invoices upon client approval, streamlining the billing process
• Use project management and time-tracking features to log billable hours and expenses, which can be directly added to invoices, ensuring accurate client billing

Use Cases

• Freelancers and solopreneurs: FreshBooks is a simpler accounting software than QuickBooks Online, making it suitable accounting and invoicing software for users without bookkeeping knowledge and experience as it is easy to understand and use.
• Creating outstanding invoices: FreshBooks started as an invoice creation software before venturing into bookkeeping. It is popular for its powerful invoicing capabilities that combine flexible customization and efficiency, such as modifying invoice designs and adding elements.
• Service businesses: FreshBooks has a great time tracking tool for service businesses but lacks the inventory accounting needed for wholesale and retail companies.

FreshBooks nearly nailed my evaluation of customization and invoicing features. Like QuickBooks Online, it provides great-looking invoices and includes all the features you’d expect from a complete bookkeeping system except inventory accounting.

That said, I had to dock the pricing category because FreshBooks includes only one user in each plan. Each additional user costs $11 monthly, and those costs can add up quickly. If price is a major concern, I recommend checking out a free alternative like Wave, which provides decent invoicing features.

On the bright side, FreshBooks offers excellent customer support in various forms, including phone, live chat, chatbot, email, and a self-help section. The only thing missing is a user community, which is where it lost points. Even so, it’s well-regarded for its outstanding customer service.

I chose Square Invoices as the best invoicing software for infrequent or low-volume transactions because it’s a merchant services provider with no monthly fees. It offers good invoicing features and affordable credit card processing rates for low-volume businesses, such as those processing less than $10,000 a month.

While it’s not as robust as standalone invoicing platforms, it allows you to create, send, and track invoices online or via its mobile apps. You can also set up automatic payment reminders and recurring billing. That said, its invoicing features are less extensive than QuickBooks Online. For example, it doesn’t automatically calculate sales tax rates based on your customer’s location and its payment processing could be improved by offering payment links for easier customer transactions.

Standout Features

• Set up recurring payments to bill customers on a predefined schedule
• Collect client payments through different options, such as credit or debit card and ACH bank payments
• Build and manage client information through the free Square Customer Directory
• Create reminders to alert customers of late invoices

Use Cases

• Square users: I recommend choosing Square Invoices if you’ve been using other Square services like Square Payments and Square Point of Sale (POS).
• Project-based businesses: You can ask for in-progress payments from clients based on project milestones or completion in just one invoice

Square Invoices earned top marks for its general invoicing features and customization. It lets you tailor invoices to fit your brand while offering essential tools like recurring billing and automatic payment reminders.

I couldn’t award higher marks for ease of use and customer support since Square Invoices isn’t a full bookkeeping solution, which might require you to rely on additional tools for accounting tasks. Pricing could have been better too—an annual plan option would have added flexibility and potentially saved users some costs over time.

Zoho Invoice is completely free—it supports unlimited users and lets you send unlimited invoices at no cost. I chose Zoho Invoice as the best free standalone invoicing software because of its exceptional invoice customization and robust invoicing features. It offers tools like cloning invoices and setting up payment reminders, along with a self-service client portal where customers can log in to view and pay invoices. You’ll also get alerts when payments are made.

Additionally, Zoho Invoice lets you track time, mileage, and billable expenses, which you can easily add to invoices. Another thing that stands out is its fully-featured iOS and Android mobile app. You can use it to send invoices, estimates, and account statements via iMessage, and even leverage the time-tracking widget for billing.

Standout Features

• Have your customers access their transactions via an online portal, allowing them to track their payables and print copies of their transactions if needed
• Record both billable and nonbillable expenses, including mileage expenses for business travel, and easily add them to invoices
• Use the built-in time tracker or manually enter hours worked; convert tracked hours into invoices to bill your clients accurately
• Clone an existing invoice to quickly create a new one with similar details—ideal for recurring billing scenarios
• Generate detailed financial reports such as sales by customer, A/R aging summaries, billable expense details, and project revenue summaries
• Send invoices in your customer’s currency, and choose from a variety of languages for seamless international transactions

Use Cases

• Businesses billing clients by project: Zoho Invoice lets you create multiple projects per customer and assign time and expenses by project. Once assigned to projects, you can include these expenses on client invoices.
• Service providers: If you offer a professional service, such as marketing or law, or personal services like housekeeping, Zoho Invoice’s timesheet feature allows you to track employee time by client to bill later.
• Zoho users: Zoho Invoice connects with other Zoho products like Zoho Inventory, Zoho CRM, and Zoho Books—which is our top pick for the best accounting software for freelancers.

Zoho Invoice excelled in my evaluation of pricing and invoice customization and even aced invoicing features. It offers a variety of invoice templates, allows you to upload your company logo, and supports adding unbilled labor and expenses directly to invoices. Additionally, it provides valuable reports, such as an A/R aging summary and project revenue summary, which can help you manage your finances effectively.

I found that the platform’s main limitation is that it requires integration with accounting software to function as a complete bookkeeping solution, which impacted its score in ease of use. It also lacks live chat support, which I found to be a drawback. Additionally, while Zoho Invoice integrates seamlessly with Zoho Books and QuickBooks Online, you must consider the extra subscription cost for the accounting software when factoring in your total expenses.

I recommend Wave for small businesses, startups, and freelancers needing a free invoicing solution within a full accounting system, as the free plan allows you to send unlimited invoices. While its invoicing features are basic, they’re a great fit if you’re looking for a simple way to invoice clients.

You can also create recurring invoices for regular billing arrangements. However, if you’re particular about invoice design, Wave’s free option might not meet your expectations. Customization, like choosing templates or changing colors, requires upgrading to Pro. That said, if your business outgrows Wave’s basic features, you might want to explore more advanced options like QuickBooks Online.

Standout Features

• Send an unlimited number of invoices at no cost, making it ideal for businesses with multiple clients
• Automate billing for repeat customers by setting up recurring invoices, even on the free plan

Use Cases

• Businesses seeking free invoicing and accounting software: Businesses on a budget wanting free invoicing software along with a full double-entry bookkeeping system will appreciate Wave’s free plan.
• Companies needing affordable receipt scanning: You can use Wave’s receipt scanning feature, Wave Receipts, to scan and attach receipts to expenses and invoices. If you upgrade to the Pro plan, then you can use this feature for free. Wave is one of our top receipt scanner apps because of its OCR^? technology, which helps extract data from receipts automatically.

Even though Wave is free, I found that it still performed well in general invoicing features. The main drawback is that you can’t email invoices directly from Wave on the free plan—you must send them through your personal email instead. It also lost points in customization because of the limited availability of invoicing templates.

While the free tier is great for cost savings, it supports only one user, which could be a limitation for growing teams. Additionally, its customer support is quite restricted; live chat and email support are only available with an add-on or a paid upgrade. If having robust support is a priority, I suggest looking into FreshBooks, which offers direct access to a live agent by phone.

• Time Tracker Premium: $15 per user, per month plus a base fee of $25
• LawBillity: $30 per user monthly with no base fee

You can try all the plans for free for 14 days with no credit card needed.

Time Tracker by eBillity offers lawyers, accountants, engineers, and other professional service firms an invoicing option integrated with powerful time tracking features. It makes sense to combine these functions for professional service firms since billable hours are the primary item on your invoices.

What sets Time Tracker apart from other invoicing options in this guide is that it tracks billable hours that are written off. A billable realization report shows the billable hours sent to clients vs written off, which is a crucial report to gauge the productivity of your professionals and the profitability of your firm.

Furthermore, Time Tracker allows you to bill your clients directly from time entries and billable expenses—which is great for businesses that offer services billed by the hour or project. To help you speed up payment collection, you can add payment links to your invoices that your clients can use to process their payments conveniently.

In our evaluation, Time Tracker by eBillity missed out on some important invoicing features, such as the ability to set up recurring invoices and accept short payments from customers. Also, invoices are not as aesthetically pleasing as those in QuickBooks Online or Invoicera since you can’t edit invoice fields and change invoice colors.

Moreover, it didn’t meet our expectations in pricing because it doesn’t offer a free plan and is priced per user rather than offering scalable plans. It also took a hit for its ease of use because it requires a bookkeeping integration and its user interface isn’t as easy to navigate as its competitors.