7 Best Invoicing & Billing Software for Small Businesses 2026

The best invoicing software should make it easy to create invoices, collect payments, automate follow-ups, and track what customers owe. I compared seven leading platforms based on pricing, customization, payment collection, recurring billing, ease of use, and customer feedback. QuickBooks Online came out on top because it connects invoicing directly with accounts receivable, the general ledger, reporting, and other accounting workflows.

Here are my seven best invoicing and billing software options for small businesses:

Provider	Best for	Starting monthly price	My ratings
QuickBooks Online	Full accounts receivable and accounting	$38	4.8
FreshBooks	Automated payment reminders and service billing	$23	4.6
Xero	Scalable invoicing with unlimited accounting users	$25 ($27 starting Oct. 1, 2026)	4.5
Zoho Invoice	Free invoicing with recurring billing (capped at 2 users and 500 invoices/year)	Free	4.2
Wave	Free invoicing with basic bookkeeping	Free	4.0
Square Invoices	Fast payment collection, deposits, and milestones	Free	3.8
Stripe Invoicing	International payments and advanced recurring billing	No monthly fee; starts at 0.4% per paid invoice	3.2

Why you can trust Fit Small Business

I've spent the past several years handling bookkeeping and accounts receivable for US businesses, where invoicing is part of my regular work. I've created customer invoices, recorded and matched payments, applied credits, reviewed aging reports, and followed up on overdue balances. That experience has shown me that good invoicing software isn't just about creating an invoice — it should also reduce the work required to collect, record, and reconcile payments.

Full-cycle bookkeeping for US-based small businesses, from transaction recording to month-end reporting.
Managing the Accounts Receivable (AR) process, including creating invoices, recording customer payments, applying credits, and monitoring aging reports.
Using QuickBooks Online daily to automate payment reminders, track outstanding invoices, and reconcile customer accounts.
Working with business owners to improve cash flow by streamlining invoicing and collections.
Evaluating accounting software professionally, comparing features, pricing, usability, and real-world workflows instead of relying solely on vendor claims.

JR Suralta

My methodology

I evaluated each invoicing platform using a consistent scoring framework focused on the features that matter most to small businesses. Rather than looking only at invoice creation, I considered how each solution performs in real-world billing workflows, from customizing invoices and automating payment reminders to overall usability and customer satisfaction.

The final rankings are based on the following criteria:

Pricing (15%): I compared monthly costs, free plans, upgrade pricing, billing transparency, and the overall value offered at each pricing tier.
Invoice customization (20%): I evaluated how much control users have over invoice templates, branding, layouts, custom fields, payment instructions, and personalization options.
Invoicing Features (30%): I assessed core billing capabilities such as recurring invoices, automated payment reminders, online payments, estimates, customer portals, time tracking, multi-currency support, and invoice tracking.
Ease of use and customer support (25%): I considered how easy each platform is to learn and navigate, along with the quality and availability of customer support, onboarding resources, and knowledge bases.
User reviews (10%): I reviewed feedback from verified users to identify recurring strengths, common frustrations, and overall satisfaction with each platform.

Quick comparison of the best invoicing software for small businesses
Software cost vs. cost to get paid
Invoicing software vs. billing software
Why QuickBooks Online is my top pick for full accounts receivable and accounting
Why FreshBooks works well for automated payment reminders & service billing
Why Xero is a smart choice for scalable invoicing with unlimited accounting users
Why Zoho Invoice is my pick for free invoicing with recurring billing
Why Wave is a good choice for free basic invoicing
Why Square Invoices is ideal for businesses who want fast payment collection, deposits & milestones
Why Stripe Invoicing stands out for international and recurring billing
Which invoicing software is best for getting paid?
How to choose the best invoicing software for your business

Quick comparison of the best invoicing software for small businesses

Provider	Invoice or client limit	Payment-processing cost*	Recurring invoices	Payment reminders	Client portal	Multi-currency	Average payout speed**	Full accounting
QuickBooks Online	Unlimited invoices	Cards: 2.99%; ACH: 1%	✅	✅	✅	✅*	Typically within 2 business days	✅
FreshBooks	Lite: 5 clients; Plus: 50; Premium: unlimited	Cards: 2.9% + 30¢; ACH: 1%	✅*	✅	✅	✅	Cards: T+2; ACH: T+4	✅
Xero	Early: 20 invoices; higher plans: unlimited	Via payment provider; Stripe starts at 2.9% + 30¢ for US cards	✅	✅	✅	✅*	Depends on payment provider; Stripe is typically 2 business days in the US	✅
Zoho Invoice	500 invoices/year; 2 users	Zoho charges no extra fee; gateway fees apply	✅	✅	✅	✅	Depends on payment gateway	❌
Wave	Unlimited invoices	Starter: 2.9% + 60¢ cards; ACH: 1%, $1 min	✅	✅*	❌	❌	Cards: 2 business days; ACH: 2–7 business days	✅
Square Invoices	Unlimited invoices	Free plan: 3.3% + 30¢ online/invoice cards; ACH: 1%, $1 min	✅	✅	✅	Limited	Next business day standard	❌
Stripe Invoicing	No traditional invoice/client cap	Invoicing fee + payment-processing fees; US cards typically 2.9% + 30¢	✅***	✅	✅	✅	Typically 2 business days in the US	❌

*Representative US payment-processing rates. Fees can vary by plan, payment type, country, and payment provider.

**Payout times shown are standard or typical published timelines; first payouts, risk reviews, weekends, and bank processing can take longer.

***Recurring subscription billing uses Stripe Billing rather than standard one-time Stripe Invoicing.

Software cost vs. cost to get paid

A free or inexpensive invoicing platform isn't necessarily the cheapest option once customers start paying online. For businesses sending a high volume of invoices — or collecting large payments — the processing fee can matter more than the monthly software subscription. I recommend comparing both costs before choosing a provider.

Provider	Software cost	US card payments	ACH/bank payments	International or currency fees	Other payment-related cost
QuickBooks Online	From $38/month	2.99%	1%	+1% for internationally issued cards	Instant deposits: 1.75%
FreshBooks	From $23/month	2.9% + 30¢; 3.5% + 30¢ for some business/Amex cards	1%	+1.5% international card; +2% FX	AutoPay/AutoCollect by card: 3.5% + 30¢
Xero	From $25/month	Depends on connected payment provider; Stripe is typically 2.9% + 30¢	Depends on provider; Stripe ACH: 0.8%, $5 cap	Stripe: +1.5% international card and +1% if currency conversion is required	No separate Xero fee for accepting payments through a connected provider
Zoho Invoice	Free	Payment gateway fee applies	Payment gateway fee applies	Depends on gateway	Zoho Invoice doesn't charge an additional payment-processing fee
Wave	Free	Starter: 2.9% + 60¢; Amex: 3.4% + 60¢	1%, $1 minimum	Availability and fees vary by payment method	Instant payout: 1%, $1 minimum
Square Invoices	Free	3.3% + 30¢ on Square Free	1%, $1 minimum	+1.5% for international cards	Paid Square plans reduce some processing rates
Stripe Invoicing	No monthly fee for Starter	2.9% + 30¢	ACH Direct Debit: 0.8%, $5 cap	+1.5% international card; +1% FX	0.4% per paid invoice for Invoicing Starter

Representative US rates are shown. Processing rates can vary by plan, card type, transaction type, payment gateway, country, and negotiated pricing.

QuickBooks currently lists card and digital-wallet payments at 2.99% and ACH at 1%, while internationally issued cards add 1%. FreshBooks charges 2.9% + 30 cents for standard US consumer cards and 1% for ACH, with additional fees for international cards and foreign currency transactions.

Xero and Zoho Invoice work differently because neither requires businesses to use one proprietary processor for every invoice. With Xero, processing costs depend on the connected service, such as Stripe. Zoho Invoice itself doesn't add a fee when customers pay online, but the payment gateway does.

Wave's Starter plan is free, but Visa, Mastercard, and Discover payments cost 2.9% + 60 cents per transaction, while ACH costs 1% with a $1 minimum. Square Free charges 3.3% + 30 cents for online or invoice card payments and 1% for ACH invoice payments, with a $1 minimum.

Stripe is the clearest example of why software price and payment cost shouldn't be treated as the same thing. Stripe Invoicing Starter has no traditional monthly subscription, but it charges 0.4% of each paid invoice in addition to payment processing. Standard domestic card processing is 2.9% + 30 cents, while ACH Direct Debit is 0.8%, capped at $5. International cards add 1.5%, and currency conversion can add another 1%.

My take: Pay attention to the size of your typical invoice. On a $100 invoice, the difference between payment processors may only be a few cents. On a $5,000 or $10,000 invoice, percentage-based card fees become much more significant. For businesses collecting larger invoices, offering ACH can reduce payment costs considerably, especially when the provider caps the ACH fee.

For example, using Stripe's standard US rates, a $5,000 card payment would cost about $145.30, while its 0.8% ACH fee would hit the $5 cap. That's a much more meaningful buying consideration than whether the invoicing software itself costs $0 or $20 per month.

Invoicing software vs. billing software

Invoicing and billing software overlap, but they aren't always the same. Invoicing software is typically designed for businesses that send one-time or recurring invoices, estimates, payment reminders, and payment links. Billing software goes further by supporting more complex revenue models, such as subscriptions, automatic recurring charges, tiered pricing, per-seat billing, and usage-based billing.

For most freelancers and small businesses, an invoicing tool like Wave, Zoho Invoice, FreshBooks, or Square is enough. Businesses with more advanced subscription or usage-based pricing will generally be better served by a platform like Stripe.

Why QuickBooks Online is my top pick for full accounts receivable and accounting

Overall Score: 4.80 / 5

Pricing 4.59

Customization 4.90

Invoicing Features 5.00

Ease of Use & Customer Service 5.00

User Reviews 4.30

Pros

Invoicing is fully integrated with Accounts Receivable and accounting
Strong recurring, progress, and batch invoicing capabilities
Automated reminders and payment-status tracking
Inventory-linked invoicing in Plus and Advanced
Supports card and ACH payments directly from invoices

Cons

Starts at $38 monthly, making it expensive for invoice-only needs
Payment-processing fees are additional to the subscription
More complex than standalone invoicing software
Invoice design flexibility is somewhat limited

Pricing & other deciding factors


Monthly pricing	Simple Start: $38 for one user Essentials: $85 for three users Plus: $140 for five users Advanced: $340 for 25 users
Add-ons pricing	Workforce Payroll + Simple Start: $88 plus $7 per employee, per month Workforce Payroll + Essentials: $135 plus $7 per employee, per month Workforce Premium + Plus: $228 plus $13 per employee, per month
Discount	50% off for 3 months
Free trial	30 days
Customer support channels	Callback (direct phone support when you upgrade to Advanced), chatbot, live chat, self-help guides, and one-on-one meetings with a QuickBooks ProAdvisor

My evaluation

I've managed accounts receivable for a product-based business using QuickBooks Online, and its biggest advantage is that invoicing doesn't operate separately from the books. When I create an invoice, it updates the customer's balance and Accounts Receivable automatically, and the related activity flows into the financial reports. That saves me from maintaining one system for billing and another for accounting.

I also find QuickBooks especially useful when managing collections because I can see which invoices are open, overdue, partially paid, or credited without piecing the information together manually. Recurring invoices can also be scheduled, and QuickBooks Payments supports automatic card or ACH collection for recurring customers.

The tradeoff is cost and complexity. If all you need is to send a few invoices each month and collect payments, Wave or Zoho Invoice will usually be simpler and less expensive. QuickBooks makes the most sense when invoicing is only one part of a broader bookkeeping and accounting workflow.

Standout features

Full AR integration: Invoices, payments, credits, customer balances, and aging reports stay connected to the general ledger, giving you a more complete view of what customers owe.
Progress and batch invoicing: Progress invoicing is useful when billing customers in stages, while batch invoicing can save time when sending similar invoices to multiple customers.
Inventory-linked sales: Plus and Advanced can connect invoiced products with inventory quantities and cost tracking, which gives QuickBooks an advantage over standalone invoicing tools for product-based businesses.
Automated collections: Recurring invoices, automatic payment reminders, and AutoPay can reduce the manual work involved in billing repeat customers and following up on outstanding balances.

Payment costs and limitations

QuickBooks Online's subscription price doesn't include payment processing. With QuickBooks Payments, card and digital wallet payments cost 2.99% per transaction, while ACH bank payments cost 1%. Internationally issued cards add another 1%, so businesses billing overseas customers should factor that into their collection costs.

For larger invoices, the difference between card and ACH payments can be significant. For example, collecting a $5,000 invoice by card would cost about $149.50 at the 2.99% rate, while a 1% ACH payment would cost $50. Unlike Stripe, however, QuickBooks' ACH pricing doesn't have a low fixed cap, making it less attractive for particularly large bank-transfer payments.

QuickBooks also offers faster access to eligible funds through instant deposits for an additional fee, while standard deposits generally arrive within two business days after the initial account setup period.

The bigger limitation is that these processing fees come on top of a paid QuickBooks subscription starting at $38 per month. That's why I wouldn't recommend QuickBooks solely for collecting invoice payments. Its higher total cost makes more sense when you also need the accounting benefits such as AR tracking, reconciliation, inventory, and financial reporting that come with the platform.

Who should use it

QuickBooks is best for small and growing businesses that need invoicing and full accounting in one platform, especially when customer billing needs to connect with AR, reporting, inventory, and reconciliation.

If your priority is simply creating professional invoices and collecting payments at the lowest possible software cost, I'd choose Wave or Zoho Invoice instead.

Choose QuickBooks Online if you want invoicing, payment tracking, and full accounting in one system.

Why FreshBooks works well for automated payment reminders & service billing

Overall Score: 4.60 / 5

Pricing 3.94

Customization 4.70

Invoicing Features 4.63

Ease of Use & Customer Service 4.20

User Reviews 4.50

Pros

Excellent time and expense billing for service businesses
Estimates and proposals convert directly to invoices
Strong invoice customization and client portal
Multi-currency and multi-language invoicing
Easy to use for non-accountants

Cons

Lite is limited to five billable clients
Recurring invoices require Plus or higher
Additional team members cost extra
Lacks the accounting depth and inventory capabilities of QuickBooks and Xero

Pricing & other deciding factors


Monthly pricing	Lite: $23 per month; unlimited invoices to five clients max Plus: $43 per month; unlimited invoices to 50 clients Premium: $70 per month; unlimited invoices and unlimited clients Select: Custom pricing
Add-ons pricing	Additional users: $11 each per month Accepts credit card payments: $20 per month Payroll: $40 per month plus $6 per user
Discount	90% off for 6 months
Free trial	30 days
Customer support channels	Phone support, live chat, chatbot, self-help library, and a community page

My evaluation

After handling invoicing and collections for US clients, I've found that service businesses often need a different workflow from product-based companies. If you're billing for hours, reimbursable expenses, projects, or retainers, getting those charges onto an invoice quickly matters more than having advanced inventory or accounting features. That's where FreshBooks stands out.

Tracked time and billable expenses can flow directly into invoices, while estimates and proposals can become invoices without re-entering the details. I find that particularly useful for consultants, agencies, and other businesses where the amount billed depends on work performed rather than products sold.

The main limitation is how quickly a growing business can outgrow the lower plans. Lite supports only five billable clients, while Plus increases that to 50. That means even a small service business with a growing client roster may need to upgrade despite having relatively simple invoicing needs.

Standout features

Time and expense billing: Track billable hours and reimbursable expenses and add them directly to client invoices, reducing manual entry for project- and hourly-based work.
Estimate and proposal workflow: Create estimates or more detailed proposals and convert accepted work into invoices, which is particularly useful for businesses that quote projects before starting them.
Client-facing billing experience: Customers can use the client portal to review invoices, estimates, payment history, and other billing information instead of relying entirely on email.
International client invoicing: Multi-currency and multi-language capabilities make FreshBooks practical for service providers working with clients outside their home market.

Payment costs and limitations

FreshBooks Payments charges 2.9% + 30 cents for standard consumer credit and debit cards, while commercial, corporate, business, and American Express cards cost 3.5% + 30 cents. ACH bank transfers cost 1%, with caps available on select plans. Automated or business-initiated payments, including credit card AutoPay and AutoCollect, also cost 3.5% + 30 cents.

Businesses billing international customers should watch for additional charges. FreshBooks adds 1.5% for international cards and 2% when currency conversion is required. Instant payouts add another 1.5%. There are also less-common costs worth knowing about: failed ACH transfers cost $4, disputes cost $15, and the original transaction fee isn't returned when you refund a customer.

For businesses collecting larger invoices, I'd encourage ACH when practical. A percentage-based card fee can become significant on a large project invoice, while ACH may provide a lower-cost collection method — particularly for businesses eligible for capped ACH pricing.

Who should use it

FreshBooks is best for consultants, agencies, freelancers, coaches, and other service businesses that need to turn time, expenses, estimates, and projects into invoices.

The clearest switching triggers are client volume and accounting complexity. If the five-client Lite limit becomes restrictive, you'll need to move up a plan. If you begin needing inventory management, more sophisticated accounts payable, or deeper accounting and reporting, I'd consider QuickBooks Online or Xero instead.

For businesses that simply want free invoicing without FreshBooks' service-business workflow, Zoho Invoice is the stronger low-cost alternative.

Choose FreshBooks if you bill clients for time, expenses, projects, or recurring services.

Why Xero is a smart choice for scalable invoicing with unlimited accounting users

Overall Score: 4.50 / 5

Pricing 4.75

Customization 4.70

Invoicing Features 4.49

Ease of Use & Customer Service 4.00

User Reviews 4.45

Pros

Unlimited users on every plan
Invoicing is connected to full accounting and bank reconciliation
Recurring invoices and automated payment reminders
Strong invoice-status visibility, including when invoices are opened
Multi-currency and project billing are available on Established
Extensive third-party app ecosystem

Cons

Early is limited to 20 invoices per month
Multi-currency and project tracking require the highest-tier Established plan
Online payment costs depend on the connected payment provider
No direct phone support as the primary support channel

Pricing & other deciding factors


Monthly pricing	Early: $25 monthly ($27 starting Oct. 1, 2026); includes 20 invoices. Growing: $55 monthly ($59 starting Oct. 1, 2026); unlimited invoices. Established: $90 monthly ($97 starting Oct. 1, 2026); unlimited invoices. All plans have unlimited users.
Add-ons pricing	Gusto: starting $49 per month; $6 per person
Discount	80% off for 3 months
Free trial	30 days
Customer support channels	Email support, chatbot, self-help resources, online library, and access to a network of Xero Advisors

Pricing update: Xero will increase its US subscription prices on October 1, 2026. Early will increase from $25 to $27 per month, Growing from $55 to $59, and Established from $90 to $97. The new pricing will apply to both new and existing US subscribers.

My evaluation

Xero is a strong fit for businesses that have moved beyond basic invoicing but still want flexibility as they grow. What I like most is that invoicing connects directly with bank reconciliation, reporting, customer balances, and the rest of the accounting system, while every plan includes unlimited users. That can make Xero more practical than software that charges per additional user as the finance or operations team expands.

The biggest limitation is the Early plan’s 20-invoice monthly cap. A business can outgrow that plan quickly even if its accounting needs are still fairly simple. Moving to Growing removes the invoice cap, while Established becomes the better fit when you need multi-currency invoicing, project time and cost tracking, or more advanced reporting.

Compared with QuickBooks Online, I’d lean toward Xero when unlimited users and a broad integration ecosystem are bigger priorities. QuickBooks remains stronger for businesses that want deeper built-in AR and inventory workflows, while FreshBooks is simpler for service businesses focused mainly on time and project billing.

Standout features

Unlimited users: Every Xero plan supports unlimited users, which can make scaling more predictable for businesses adding bookkeepers, managers, or operational staff.
Invoice and payment-status tracking: Xero lets you see when an invoice has been opened and monitor its payment status, helping with collection follow-ups.
Accounting-connected invoicing: Invoices flow into customer balances, reporting, and reconciliation rather than operating as a separate billing system.
Advanced features on Established: Multi-currency support and project time and cost tracking make the highest tier particularly useful for businesses serving international customers or billing project work.

Payment costs and limitations

Xero itself does not set one universal processing rate for customer invoice payments. Instead, businesses connect payment services such as Stripe, so card, ACH, international, and currency-conversion fees depend on the processor selected. That gives businesses more choice, but it also means the Xero subscription price does not represent the full cost of getting paid.

For example, if you use Stripe, standard US online card pricing is generally 2.9% + 30 cents, while ACH Direct Debit is 0.8% capped at $5. International cards and currency conversion can add further fees. These processing costs are charged separately from the Xero subscription.

Who should use it

Xero is best for growing businesses that need full accounting, multiple users, and room to add more sophisticated invoicing workflows without changing platforms.

The clearest switching trigger is invoice volume: once you regularly exceed the Early plan’s 20-invoice limit, Growing becomes the practical minimum. If you begin billing international customers or need to turn tracked project time and costs into invoices, Established is the more appropriate tier.

For a very small business that only needs simple invoicing, Wave or Zoho Invoice is less expensive. For service businesses where time billing is the main priority, FreshBooks is easier to justify.

Choose Xero if you want invoicing connected to scalable accounting with unlimited users.

Why Zoho Invoice is my pick for free invoicing with recurring billing

Overall score: 4.20 / 5

Pricing 4.90

Customization 4.90

Invoicing Features 3.87

Ease of Use & Customer Service 3.50

User Reviews 4.50

Pros

Free with no monthly subscription
Strong invoice customization, recurring billing, and payment reminders
Built-in time and expense tracking for project billing
Client portal included
Supports multiple payment gateways and currencies

Cons

Limited to two users
Capped at 500 invoices per year
Limited to three projects
Not a full accounting system
Payment-processing costs depend on the connected gateway

Pricing & other deciding factors


Monthly pricing	Free forever; no credit card required to sign up, and no ads or in-app purchases You’ll have access to all features, including invoicing, expense tracking, and project management. It is capped at 2 users and 500 invoices/year If you exceed the invoice cap, Zoho pushes you to upgrade to Zoho Books (paid, starts around $20/mo)
Add-ons pricing	✕
Discount	✕
Free trial	N/A; software is free
Customer support channels	Phone, email, chatbot, and self-help library

My evaluation

Zoho Invoice stands out because it gives small businesses a surprisingly complete invoicing workflow without charging a monthly software fee. You can customize invoices, track billable time and expenses, send recurring invoices, automate reminders, and give customers access to a self-service portal. Zoho also supports auto-charging saved cards for recurring invoices.

I see it as a particularly strong alternative to FreshBooks for freelancers and service businesses that want project and time billing but do not yet need full accounting. The tradeoff is scale. The free plan allows only two users, three projects, and 500 invoices per year, so a business sending roughly 40 or more invoices each month can eventually hit the annual invoice ceiling.

Compared with Wave, Zoho Invoice gives me more flexibility around invoice customization, project billing, and the client-facing invoicing workflow. Wave is the better choice when you also want basic bookkeeping in the same free platform.

Standout features

Time and expense billing: Track billable hours and expenses and convert them into invoices, making Zoho especially useful for freelancers, consultants, and project-based businesses.
Client portal: Customers can review invoices, make payments, respond to quotes, and view their transaction history from one place.
Flexible invoice customization: Zoho offers customizable templates, multiple languages, scheduled invoices, and recurring billing.
Recurring payment automation: Recurring invoices can be generated and sent automatically, and supported gateways can automatically charge a customer's saved card.

Payment costs and limitations

Zoho Invoice itself does not add a transaction fee when customers pay an invoice. Instead, processing fees come from whichever payment gateway you connect, such as Zoho Payments, Stripe, PayPal, or Square. That makes the software cost easy to understand — $0 per month — but the true cost of getting paid still depends on your chosen processor.

For example, businesses using Stripe will pay Stripe's applicable card or ACH processing rates, while businesses using Square will pay Square's rates. Zoho does not add another payment-processing surcharge on top.

One limitation worth highlighting is that ACH availability depends on the gateway. Zoho Payments supports cards and ACH Direct Debit in the US upon request, rather than making ACH universally available by default.

Who should use it

Zoho Invoice is best for freelancers, consultants, contractors, and very small businesses that want professional invoicing, project billing, and payment automation without paying a monthly subscription.

The clearest switching triggers are the free-plan limits. If you need more than two users, three active projects, or 500 invoices per year, or if you start needing bank reconciliation, accounts payable, a complete general ledger, and financial statements, it makes more sense to move to a full accounting platform such as Zoho Books, QuickBooks Online, or Xero. Zoho itself recommends moving to a more powerful solution as the business scales.

For businesses that want free invoicing plus basic bookkeeping, I would choose Wave instead.

Choose Zoho Invoice if you want feature-rich standalone invoicing and project billing without a monthly software fee.

Why Wave is a good choice for free basic invoicing

Overall score: 4.00 / 5

Pricing 5.00

Customization 4.32

Invoicing Features 4.38

Ease of Use & Customer Service 3.20

User Reviews 4.40

Pros

Free Starter plan with unlimited invoices and estimates
Basic bookkeeping is included, unlike Zoho Invoice
Supports card and ACH payments directly from invoices
Pro adds bank feeds, automation, receipt capture, and unlimited collaborators
No invoice or client limits

Cons

Starter has higher per-transaction card fees than some competitors
ACH payouts can take up to seven business days
Limited invoice customization compared with Zoho Invoice
Not ideal for inventory, advanced reporting, or complex AR workflows
Many automation features require the $19 Pro plan

Pricing & other deciding factors


Monthly pricing	Starter: Free; one user only, standard features like income and expense tracking, and unlimited invoicing Pro: $19 (or $190 per year); unlimited users, plus bank feed connections, free unlimited receipt scanning, and enhanced invoice customization
Add-ons pricing	Receipt scanning: $8 per month or $72 per year in Starter; free in Pro Bookkeeping support (Wave Advisor): From $149 monthly Accounting and payroll coaching: $379 (one-time fee)
Discount	✕
Free trial	✕
Customer support channels	Starter: Online resources (access live chat and email support when you purchase an add-on) Pro: Phone, live chat, and email support, plus online resources

My evaluation

Wave is the option I’d choose when a small business wants free invoicing but also needs basic bookkeeping in the same system. That is its biggest advantage over Zoho Invoice. Zoho is stronger for standalone invoicing, customization, and project billing, while Wave gives you invoices, estimates, bookkeeping records, and basic cash-flow tracking without a monthly fee. Wave’s Starter plan currently supports unlimited invoices, estimates, bills, and bookkeeping records.

The tradeoff is that Wave’s free plan is fairly basic. If you want automatic bank transaction imports, auto-categorization, receipt capture, or additional users, you’ll need Wave Pro at $19 per month.

Compared with QuickBooks Online, Wave is easier to justify for very small businesses with straightforward books. I’d switch to QuickBooks or Xero once you need more advanced reporting, inventory, deeper accounts receivable controls, or a broader accounting workflow.

Standout features

Free invoicing plus bookkeeping: Starter includes unlimited invoices and estimates along with basic bookkeeping, which is unusual among free invoicing platforms.
Integrated online payments: Customers can pay Wave invoices by card or ACH, and payments flow back into the bookkeeping records automatically.
Deposits and recurring payments: Wave can request deposits through estimates and supports recurring billing with automatic payments for repeat customers.
Affordable upgrade path: Pro costs $19 monthly and adds automation such as bank feeds, transaction categorization, receipt capture, and unlimited user access.

Payment costs and limitations

Wave’s Starter plan charges 2.9% + 60 cents for Visa, Mastercard, and Discover transactions and 3.4% + 60 cents for American Express. ACH bank payments cost 1%, with a $1 minimum.

The Pro plan has a useful payment-cost advantage: the first 10 card transactions each monthly subscription period have no fixed 60-cent charge. That means Visa, Mastercard, and Discover transactions cost 2.9% + $0, while Amex costs 3.4% + $0 for those first 10 transactions. After that, Starter rates apply.

Payout timing is another consideration. Wave says card payments are generally deposited within one to two business days, while ACH payments can take one to seven business days. Eligible businesses can use Instant Payout for 1% of the amount withdrawn, with a $1 minimum, in addition to the regular processing fee.

That makes Wave particularly cost-effective for businesses sending many invoices but collecting relatively few online payments. However, the 60-cent fixed card charge on Starter can add up if you process a high volume of small invoices.

Who should use it

Wave is best for freelancers, solopreneurs, and very small service businesses that want unlimited invoicing and basic bookkeeping without paying a monthly subscription.

A good reason to upgrade to Pro is when manual bookkeeping starts taking too much time, and you want automatic bank imports, receipt capture, and more collaboration. A good reason to switch away from Wave is when the business starts needing inventory tracking, more advanced AR controls, deeper reporting, or accounting workflows that Wave no longer handles comfortably.

If invoicing flexibility and project billing matter more than bookkeeping, I’d choose Zoho Invoice instead. If the business has become complex enough to need a more complete accounting platform, I’d move to QuickBooks Online or Xero.

Choose Wave if you want unlimited invoicing and basic bookkeeping for free.

Why Square Invoices is ideal for businesses who want fast payment collection, deposits & milestones

Overall score: 3.80 / 5

Pricing 3.28

Customization 3.32

Invoicing Features 3.68

Ease of Use & Customer Service 2.95

User Reviews 4.50

Pros

Free plan with unlimited invoices, estimates, and contracts
Strong integration with Square’s POS and payment ecosystem
Supports deposits, milestone payments, and recurring invoices
Customers can pay invoices by card or ACH
Fast standard payout compared with many competitors

Cons

Free-plan invoice card payments cost 3.3% + 30 cents
Not a full accounting system
International and multi-currency invoicing is limited
More advanced invoicing features require a paid Square plan
Less suitable for businesses with complex AR requirements

Pricing & other deciding factors


Monthly pricing	Free: Free forever Plus: $20 for additional invoicing features (like custom fields and multipackage estimates), plus discounted payment processing rates Both tiers allow you to add unlimited users.
Add-ons pricing	✕
Discount	✕
Free trial	30 days for the Plus plan
Customer support channels	Automated chat assistant and phone support

My evaluation

Square Invoices makes the most sense when collecting the payment is just as important as creating the invoice. I particularly like it for contractors, event businesses, repair services, and other businesses that may collect a deposit upfront, invoice the remaining balance later, and accept payments both online and in person.

That's also what separates Square from Wave and Zoho Invoice. I'd choose Wave when basic bookkeeping is important and Zoho Invoice when invoice customization and project billing are the priority. Square is the stronger choice when the business already uses or plans to use Square for POS and payment collection.

However, Square isn't an accounting replacement. Once a business needs deeper AR reporting, bank reconciliation, inventory accounting, or financial statements, I'd connect Square to accounting software or consider QuickBooks Online or Xero instead.

Standout features

Deposits and milestone payments: Businesses can request an upfront deposit and divide the remaining balance into payment milestones, which is useful for projects that aren't paid all at once.
Online and in-person payment ecosystem: Square connects invoicing with its broader payment and POS tools, making it particularly useful for businesses that don't collect all customer payments through invoices.
Contracts and estimates: You can send estimates and contracts as part of the customer billing workflow rather than relying on separate tools.
Faster access to funds: Standard transfers are generally available as soon as the next business day, while eligible sellers can pay for faster transfer options.

Payment costs and limitations

With Square Free, online invoice payments made by credit or debit card cost 3.3% + 30 cents per transaction. ACH payments cost 1% with a $1 minimum. Square's paid plans can lower the online card rate to 2.9% + 30 cents, so businesses processing enough invoice payments should consider whether the processing savings help offset the monthly subscription.

International cards add 1.5% to the applicable processing rate. Standard transfers to a linked bank account are free and typically arrive the next business day, while faster transfer options carry an additional fee.

The processing rate is an important limitation when comparing Square with the other free options. On a $1,000 invoice, for example, Square Free's 3.3% + 30-cent online card rate works out to $33.30. The 1% ACH fee would be $10. For businesses collecting large invoices, encouraging ACH where appropriate can materially reduce payment costs.

Who should use it

Square Invoices is best for contractors, appointment-based businesses, retailers, and other small businesses that need to collect deposits or milestone payments and accept customer payments both online and in person.

The strongest reason to choose Square is that you're already using its payment or POS ecosystem. If you only need free invoicing, Zoho Invoice offers stronger standalone invoicing features, while Wave adds basic bookkeeping.

The switching trigger comes when invoicing and payment collection are no longer enough. If you need complete AR reporting, reconciliation, inventory accounting, or more sophisticated financial reporting, I'd move the accounting side of the workflow to QuickBooks Online or Xero.

Choose Square Invoices if you want invoicing, deposits, and online and in-person payments in the same ecosystem.

Why Stripe Invoicing stands out for international and recurring billing

Overall score: 3.20 / 5

Pricing 3.46

Customization 3.32

Invoicing Features 3.68

Ease of Use & Customer Service 2.95

User Reviews 4.50

Pros

Supports invoices in multiple currencies and payment methods
Excellent for subscription and recurring revenue models
Supports tiered, per-seat, metered, and usage-based billing through Stripe Billing
Strong payment automation and customer portal
Extensive APIs and integrations for customized billing workflows

Cons

Charges an invoicing fee on top of payment-processing fees
Advanced recurring billing requires Stripe Billing
More complicated to configure than Wave, Zoho Invoice, or Square
Not a full accounting system
Costs can become significant as payment volume increases

Pricing & other deciding factors


Monthly pricing	Starter Plan: Costs 0.4% per paid invoice, has 25 free invoices per month, and includes a hosted invoice page and insight and analytic tools Plus Plan: Costs 0.5% per paid invoice and adds estimate building, automatic collection, and auto reconciliation tools on top of the Starter Plan
Add-ons pricing	Standard card processing: 2.9% + $0.30 (online, domestic) ACH: 0.8%, capped at $5 — much cheaper for large invoices International cards: +1.5% Currency conversion: +1% Recurring billing via Stripe Billing (if used instead of one-off invoices): ~0.7% of subscription volume Disputes: $15 per chargeback, non-refundable even if you contest and lose
Discount	✕
Free trial	N/A, software is free
Customer support channels	Phone, chat, and email support

My evaluation

Stripe differs from the other providers on this list because its biggest strength isn't traditional small business invoicing. It's the payment and billing infrastructure behind the invoice. I would choose it for businesses selling internationally or using more complex recurring revenue models that simpler invoicing platforms aren't designed to handle.

Stripe becomes particularly compelling for SaaS and subscription businesses. Stripe Billing supports models such as flat-rate, per-seat, tiered, metered, and usage-based pricing, so a business isn't limited to charging the same fixed amount every month.

That flexibility comes with additional complexity and cost. If you're a freelancer who just needs to send an invoice and collect payment, Stripe isn't my first choice; Zoho Invoice, Wave, FreshBooks, or Square offer a more straightforward invoicing workflow. Stripe makes more sense when the billing model itself is becoming sophisticated.

Standout features

Advanced subscription billing: Stripe Billing supports recurring revenue models beyond simple fixed monthly subscriptions, including per-seat, tiered, metered, and usage-based charges.
International payments: Stripe supports numerous currencies and payment methods, making it better suited to businesses collecting payments from customers across multiple markets.
Customer self-service: Stripe's customer portal lets customers manage payment methods, invoices, and subscriptions without requiring the business to handle every billing change manually.
Developer flexibility: APIs and integrations make it possible to build Stripe's invoicing and billing capabilities directly into a website, app, or custom customer workflow.

Payment costs and limitations

Stripe Invoicing uses transaction-based pricing rather than a traditional monthly subscription. Its Starter plan costs 0.4% per paid invoice, while Invoicing Plus costs 0.5% per paid invoice. Importantly, that fee is separate from Stripe's payment-processing charges.

For US businesses, standard domestic card processing is 2.9% + 30 cents, while ACH Direct Debit costs 0.8%, capped at $5. International cards add 1.5%, and currency conversion adds another 1% when required.

The difference becomes noticeable on larger invoices. For example, collecting a $5,000 domestic card payment through Stripe Invoicing Starter would result in approximately:

Card processing: $145.30
Invoicing fee at 0.4%: $20
Total: $165.30

By comparison, ACH Direct Debit would hit its $5 processing cap, although the 0.4% Invoicing fee would still apply. That makes the payment method an important cost consideration for businesses issuing high-value invoices.

There is another cost to consider for subscription businesses: Stripe Billing is separate from Stripe Invoicing. Stripe's pay-as-you-go Billing pricing is currently 0.7% of Billing volume, so businesses using Stripe primarily for recurring subscription billing should evaluate Billing fees rather than assuming the 0.4% Invoicing fee represents their complete billing cost.

Who should use it

Stripe is best for SaaS companies, subscription businesses, and companies billing customers internationally, particularly when pricing goes beyond a simple fixed recurring invoice.

The clearest switching trigger is billing complexity. If your business moves from straightforward invoices to per-user subscriptions, pricing tiers, metered consumption, or usage-based charges, Stripe Billing provides substantially more flexibility than traditional small business invoicing tools.

The opposite is also true: if you're only sending standard invoices, Stripe's additional fees and configuration may be unnecessary. I'd choose Zoho Invoice or Wave for simple low-cost invoicing, FreshBooks for service billing, and Square when deposits and in-person payments are more important.

Choose Stripe if you need international payment collection or a billing system that can scale into complex subscription and usage-based pricing.

Which invoicing software is best for getting paid?

One thing I've learned from managing accounts receivable is that creating the invoice is only the first step. The bigger question is what happens after you send it. Can the customer pay immediately? Will the software follow up when the invoice becomes overdue? Can you automatically charge repeat customers? And does the payment flow back into your accounting records without extra work?

Here's how my recommendations differ when getting paid is the priority:

If your priority is...	My pick	Why
Simple, low-cost invoicing	Zoho Invoice	Free standalone invoicing with strong customization, time tracking, and project billing
Free invoicing + bookkeeping	Wave	Combines invoicing with basic double-entry accounting
Service-based billing	FreshBooks	Makes it easy to turn tracked time, expenses, and estimates into invoices
Deposits & milestone payments	Square Invoices	Strong fit for project-based businesses that collect deposits or payments in stages
International payments	Stripe Invoicing	Built around Stripe's global payment infrastructure and multi-currency payments
Scalable invoicing for growing teams	Xero	Combines invoicing with full accounting and includes unlimited users on every plan
Full accounts-receivable accounting	QuickBooks Online	Invoices connect directly with AR, the general ledger, customer balances, reporting, and other accounting workflows

How to choose the best invoicing software for your business

Start with how you bill customers and how you want to get paid. The lowest-priced platform isn't always the best value once you factor in payment-processing costs, invoice limits, automation, and whether you also need accounting.

I recommend comparing these factors:

Invoice volume: Check whether the plan limits invoices or clients. Xero Early, FreshBooks Lite, and Zoho Invoice can become restrictive as billing volume grows.
Payment costs: Compare card, ACH, international, and currency-conversion fees—not just the monthly subscription. ACH can be significantly cheaper for large invoices.
Recurring billing: If you only need fixed recurring invoices, QuickBooks, FreshBooks, Wave, and Zoho Invoice may be enough. For tiered, per-seat, metered, or usage-based pricing, Stripe is the stronger choice.
Service and project billing: FreshBooks and Zoho Invoice are better suited to businesses that need to turn tracked time, expenses, estimates, or projects into invoices.
Deposits and milestone payments: Square is particularly useful for contractors and project-based businesses that collect an upfront deposit and bill the remaining balance in stages.
International billing: Consider supported currencies, payment methods, international card surcharges, and foreign exchange fees. Stripe is the strongest option here for more complex cross-border billing.
Accounting needs: If invoicing needs to connect directly with AR, bank reconciliation, inventory, and financial reporting, QuickBooks Online or Xero will usually make more sense than standalone invoicing software.
Ease of switching: Think about what would cause you to outgrow the platform. Client limits, invoice caps, additional users, inventory needs, or more complex reporting are common reasons businesses eventually move to a fuller accounting system.

My recommendations by priority

For simple free invoicing, I’d start with Zoho Invoice. Choose Wave if you also want basic bookkeeping, FreshBooks if you bill primarily for services, time, and expenses, and Square Invoices if deposits and payment collection are central to your workflow.

For businesses that need invoicing tied closely to their books, QuickBooks Online is my top overall choice, while Xero is especially attractive when unlimited users and scalability matter. If your business has international customers or sophisticated subscription pricing, Stripe is the better fit.

The key is to choose based on the workflow you expect to have six to 12 months from now and not just the cheapest plan available today.

Frequently asked questions (FAQs)

What is the best invoicing software for a small business?

It depends on your needs. If you want invoicing and accounting in one platform, I recommend QuickBooks Online because it handles everything from creating invoices to tracking payments and generating financial reports. If you only need a standalone invoicing solution, Zoho Invoice offers one of the strongest free feature sets available.

Can I use free invoicing software for my business?

Yes. Many freelancers and small businesses do well with free options like Wave or Zoho Invoice. From my experience, the decision to upgrade usually comes when a business needs more automation, advanced reporting, or accounting features rather than simply sending more invoices.

How can invoicing software help me get paid faster?

The biggest advantage is automation. Features like automatic payment reminders, recurring invoices, and online payment links remove the need for manual follow-ups. When I managed accounts receivable, automated reminders consistently reduced the time I spent chasing overdue invoices because customers received timely prompts without extra work from me.

7 Best Invoicing & Billing Software for Small Businesses in 2026

Why you can trust Fit Small Business

My methodology

Quick comparison of the best invoicing software for small businesses

Software cost vs. cost to get paid

Invoicing software vs. billing software

Why QuickBooks Online is my top pick for full accounts receivable and accounting

Standout features

Why FreshBooks works well for automated payment reminders & service billing

Standout features

Why Xero is a smart choice for scalable invoicing with unlimited accounting users

Standout features

Why Zoho Invoice is my pick for free invoicing with recurring billing

Standout features

Why Wave is a good choice for free basic invoicing

Standout features

Why Square Invoices is ideal for businesses who want fast payment collection, deposits & milestones

Standout features

Why Stripe Invoicing stands out for international and recurring billing

Standout features

Which invoicing software is best for getting paid?

How to choose the best invoicing software for your business

Frequently asked questions (FAQs)

JR Suralta

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