13 Best Invoicing Software for Small Business Billing (2020)
Whether you run a small business or are a freelancer, you already know collecting on-time payments is challenging.
In fact, over 39% of invoices are paid late in the US – and 61% of late payments occur due to incorrect invoices.
This is where the best invoicing software comes into play.
Whether you work from home as a freelancer or run a large enterprise, having an efficient invoicing tool goes a long way in generating more revenue and closing sales.
To help you make your final decision, I tested, ranked, and reviewed some of the best invoicing tools to try this year.
Let’s get started.
Here are my top picks for the best invoicing software to use this year.
FreshBooks is one of the most popular invoicing tools on this list. It’s capable of doing a lot of automated tasks, including invoice reminders and collecting payment. It also helps you keep track of your business finances through insightful reports that help you make smarter decisions.
It’s best for businesses that want the most capable tool and don’t want to spend a lot of time on invoicing.
- Tracking Expenses: Efficiently track expenses based on client requirements. You can also easily add an expense component to any invoice as a part of reimbursement.
- Simple User Interface: It comes with a modern user interface that promotes easy collaboration with the team members. Its redesigned dashboard offers excellent customization capabilities.
- Mobile App: It comes with highly functional mobile applications to stay connected with clients and remote teams all the time. Moreover, you can take pictures of receipts to create invoices on the go.
- Financial Reports: It helps you gain easy access to all the crucial financial reports generated by Freshbooks on your dashboard. It also provides intuitive reports with color-coding to save you from the headache of number crunching.
- Allows you to easily add the expense tool to your bank account to track expenses
- Comes with an automated late payment tracking feature
- Chat with clients and team members on the go through mobile apps
- Allows you to collect late fees automatically on an invoice
- Send automated and customized reminder
- Allows you to create customized proposals and estimates easily and enables clients to approve with a single click
- Track the time of your team spent on a particular project through the timer
- Enables you to create invoices in multiple languages
- Ensures seamless collaboration by giving selective access to files to different parties
- Not suitable for complex or larger businesses
- Doesn’t allow you to access reports on the go
Its paid plans range from $15 to $50 per month based on their Lite, Plus, and Premium plans.
QuickBooks is another popular invoicing software that efficiently consolidates your accounting data to help you monitor all the transactions efficiently. Moreover, it ensures access to sales and customer management modules, allowing you to handle all the invoices in one place.
This tool is suitable for mid-sized businesses that are witnessing brisk growth.
- Seamless Integration: With support for over 180 third-party integrations, it offers robust integration capabilities with your business’ existing applications.
- Industry-Specific Solutions: It offers industry-specific accounting solutions to meet specific business requirements to expedite the process of integration with the native system.
- Automated Reporting: Easily customize reports, schedule in a calendar, and send them to different stakeholders. It also offers business-specific templates for efficient customization.
- File Manager: Ensure version control, store client passwords securely, organize all the QuickBooks files of clients, and easily upgrade clients’ business files in batches.
- Start reconciliation instantly with all the accountant tools present in the Accountant Center
- Easily reclassify heaps of transaction data and rectify incorrect sales tax payments
- Clear the undeposited funds through a single screen
- Instantly send journal entries to the client with the required changes
- Get access to immersive reports through easy-to-read consumer tools
- Efficiently consolidate multiple invoices in a single email to enable customers to make payments easily
- Customer support is not efficient
- It’s a bit more expensive than other invoicing options
Its yearly subscription cost starts from $1,091 and goes up to $1,746.
Xero is an online invoicing software for businesses that works well from any location. It comes equipped with impressive features, including automatic reminders, customizable templates, and online payment options. On top of that, it offers robust data security for all the shared invoices.
Xero offers excellent customer experience with a free trial. It’s good for businesses and for professionals looking to try the software solution before making their final purchase.
- Streamlined Transactions: Leverage its multiple-approval model and two-factor authentication to minimize financial fraud possibilities.
- Inventory Management: It allows you to track your inventory and keep detailed records. These records include purchase costs, descriptions, committed quotes, tax status, among others.
- Easy to Use: It comes with an easy to use dashboard that helps you easily monitor business-wide invoicing and billing statuses.
- Integration with a Large Number of Tools: It offers reliable integration with a large number of popular third-party solutions, including Kabbage, ZenPayroll, Evernote, Deputy, Vend, Stitch Bill, Labs, Synergy, Mogul, Workflow Max, Carbon Analytics, among others.
- Easily control purchase orders, categorize invoices as drafted, or awaiting approval, and payment, or delayed
- Make an efficient comparison of finances through interactive charts
- Allows you to reduce the entry of repetitive data entry
- Expedite invoice generation by leveraging existing invoice templates and setting recurring invoicing
- Easily send invoices from your tablet or smartphone
- Embed ‘Pay now’ option on your online invoice to enable the customer to make payments instantly
- Easily add your costs and expenses on an invoice
- Offers limited reporting options
- All digital payment solutions require a paid subscription
Its monthly subscription plans start from $9 and go up to $60. You also get a 30-day free trial that comes with all the features.
4. Zoho Invoice.
Zoho is one of the best invoice software for small businesses. It enables small businesses to create and send professional invoices automatically. The good news is that it allows invoicing in multiple countries and enables sending recurring invoices with proper branding.
Zoho Invoice works best for small business owners looking for simple and effective invoicing features.
- Decimal Precision: It’s capable of recording invoices in foreign currencies with decimal precision. Customers can easily make the payment online through invoices only.
- Time Tracking: Easily track expenses and time to follow up payments and track finances in immersive visual graphs.
- Data: With Zoho, you can manage all the data and store it on the local server and reliable external data centers. You can also recover this data at any point in time. Moreover, it takes automatic backup of the data regularly.
- Business Information Review: Easily check out all the business information at a glance, including the sale of products & services or customers who regularly make timely payments.
- It offers support with multiple payment gateways, including PayPal, Stripe, and more
- Send your invoices with appropriate branding through easily customizable templates
- Automate recurring tasks including sending invoices or reminders
- It comes with a forever free plan that any self-employed user (with less than five customers) can leverage
- Offers an open-API architecture for easy integration with existing business applications
- Allows you to easily create projects from estimates and convert it into an invoice
- You can track time, read reports and create invoices on the go with its efficient mobile application
- Mobile apps don’t have all the features of a website
- Integration with some third-party applications is complex
The paid plans start from $9 per month and range up to $29 per month.
If you want more advanced accounts receivable and accounts payable features, you can also check out a similar product – Zoho Books.
Wave is another powerful invoicing software on this list. It enables small businesses to create and send professional invoices within seconds easily. It also helps you track the status of invoices on the go through its iOS and Android mobile apps.
It’s most suitable for small businesses that are looking for free but capable accounting software.
- Instant Notifications: Easily get updates whenever the customer views your invoice, regarding due invoices, and completed payments.
- Free to Use: With no paywalls and hidden charges, Wave is an excellent platform for small businesses and startups that are thin on budget.
- Tax Calculation and Deduction: Make payment to your team from anywhere through online pay stubs. You can also choose direct deposits. It can also simultaneously make any taxation regulations and provisions.
- Automated Billing: Helps you save a lot of time with automated billing software. You can also send automatic reminders to the client.
- Follow the budget by tracking your expenses efficiently
- Easily scan bills or connect Wave with your bank account to monitor your expenses daily
- Allows you to accept online payments
- Invoicing and payment data syncs automatically with Wave
- Instantly switch between automatic and manual billing at any point in time
- Customize invoices instantly as per your business’ branding guidelines
- Allows you to send unlimited invoices
- Handles payment processing, expense tracking, and cash flow
- Accepting electronic payments instantly costs extra
- Doesn’t provide credit notes feature
Available for free. You can also choose to pay per use for credit card processing or choose a flat monthly fee.
Intacct is more than just an invoicing platform since it comes with plenty of other accounting tools as well. It helps in increasing the efficiency of the accounting team and enables businesses to receive payments at a faster pace. Moreover, it automates the invoicing process and enables you to connect with customers for timely payments.
It’s suitable for ecommerce businesses that are also looking for a capable accounting tool to integrate with.
- Faster Order Processing: It works closely with online retailers to streamline the process for faster processing of orders.
- Limited Control and Access: It’s capable of controlling the movement of a user within the software.
- Customizable Report: It comes equipped with dashboards, basic graphs, and charts that are relevant to basic reports. Users can also easily eliminate manual computation from MS Excel sheets.
- Easy-to-Use: It offers a highly functional and easy-to-use user interface. Its dashboard is highly customizable, and you can create shortcuts for almost any task.
- It leverages Oracle’s reliable database system to avoid data security threats
- Provides granular insights about invoices
- You can create a configurable process that can work automatically to achieve greater internal control
- Manage customer communications in a structured and automated manner
- Go through the real-time history of customers, including payment history, delay, and modes of payment
- Generate recurring invoices and send them directly to the customer via email
- It efficiently interacts with your CRM solution to give a birds-eye view of sales, orders, quotes, and invoices
- Doesn’t have any mobile app
- It will cost you extra to get additional modules
The pricing details are available on request.
Brightpearl is an omnichannel retail software, designed to manage invoices for companies with an inventory. It automatically accounts for bookkeeping entries for invoices, orders, and payments. It also secures essential data for reporting purposes.
Brightpearl is most suitable for retail channels and for businesses that are in retail.
- Centralized Inventory Management: Easily ensure centralized inventory management through all the data kept, updated, and changed in real-time in the database.
- Automated Accounting: It automatically accounts for bookkeeping entries for invoices, payments, and orders to reduce manual bookkeeping efforts.
- Marketplace Connection: Easily improve and manage an omnichannel business from a single location with its powerful integration with Shopify or Amazon.
- Single Resource of Information: It becomes a central hub of all the information through which you can easily manage your business.
- Generates automated reports to track the health of finances efficiently
- Allows you to automate invoice tracking and billing on ecommerce platforms
- Get real-time financial data of your business, including sales, purchase, and inventory
- Works on mobile devices
- Offers a free trial with all the relevant features
- Allows you to create recurring invoices and send automated reminders to customers
- Provides feature-rich reports so that you can gain actionable insights about the business
- Automatic payment reminders
- Only for retail businesses
- Some reviews cited issues with the loading time
It offers a monthly subscription of $60. You can save 20% on a yearly subscription that will cost you $576.
ZipBooks is a free to use invoicing platform that works well enough for your small business. It allows users to accept payments online from many different providers, just like any enterprise-grade software.
It’s suitable for startups and freelancers who are looking for free invoicing solutions.
- Flexible Invoice Maker: Easily create and modify invoice templates for specific business needs and branding.
- Core Accounting Functionality: Easily gain access to total account receivables, average invoice age, and paid invoices, among others.
- Connect With Bank Account: Keep all the financial data up to date by efficiently connecting the software with your bank account to track the expense of every penny.
- Reconciliation Feature: Categorize your bank expenses and quickly check them from one place.
- Allows you to track the time each team member is spending on a project to generate an invoice with accurate work hours. This works great when coupled with project management software.
- You can receive customer reviews through its feedback functionality
- Its reporting feature allows you to go through the finances of the last 12 months
- Provides reliable and responsive customer support
- Its data-driven intelligence report gives financial health score
- Automate recurring auto bills and reminders
- Connects your bank accounts to track business expenses
- Integrates seamlessly with essential third-party tools, including Asana, Google Drive, Google Apps, Google Chrome, and Slack, among others
- Poor sorting of time tracking jobs
- Its mobile application is not user friendly
The Starter plan is available entirely free. After that, the paid plans start from $15 per month.
Hiveage works in 140 countries and has a healthy user base of over 50,000. It helps you create professional and elegant invoices and, at the same time, enables you to accept and approve online invoice payments.
It’s most suitable for small businesses and freelancers.
- Tracking Mileage: Efficiently track both the time spent and expenses incurred on a project. If miles matter to your business, then you can also easily track the miles covered by your employees.
- Analytics: It offers a plethora of insightful reports to help you track the financial health of the business. It also generates standard reports and immersive graphs on payables/receivables to keep track of your financial activity.
- Estimates: Easily create quotes for clients and get the payment on the same quote by transforming them into invoices.
- Branded Invoices: Easily add your logo, name, contact information, and other business details to make your invoice look highly professional.
- Offers integration with all the leading payment gateways
- Easily charge subscriptions through automatic, manual, and auto-billing recurring invoices
- Allows employees to track their respective bills and invoices
- Enables you to share financial information within the team through a secured channel
- Create an invoice from any device, including tablets and smartphones
- Exports and imports reports or data in a CSV file, through its API. You can also leverage its convenient tools to connect with third-party software
- Offers uptime of 99.99% and takes regular backup of your data to prevent any sort of data loss
- Customer support is not responsive
- Default payment button is not prominent
Its monthly subscription price starts from $16 and ranges up to $42.
Stripe offers reliable invoicing solutions and is also capable of receiving wire transfer payments without revealing your bank details. Its recovery tools help you reduce payment and increase revenue by several basis points.
If your business needs to accept wire transfer payments regularly, then Stripe is a great tool for you.
- Virtual Bank Account: Stripe allows you to create virtual bank account numbers through which you can accept funds from anyone without divulging your sensitive bank account details.
- One-Off Invoices: Automatically bill your customers on a recurring basis by sending one-time invoices. You can accept the payment through ACH, card, or wire transfer.
- Stripe Billing API: It’s a delight for developers as it allows easy and reliable integration with the existing mobile apps, web applications, or CRM systems. Developers can leverage its “out-of-the-box functionality” to start instantly.
- Customized Pricing: It offers multiple pricing plans, including per seat, flat rate, and usage-based, among others, to meet specific requirements of various businesses.
- If you’re a developer, then you can leverage Stripe’s composable API building blocks to customize the subscription logic and pricing plans
- Allows you to create and manage different subscription plans without writing a single line of code
- Add an unlimited number of team members to handle various roles and permissions
- Its unified API allows acceptance of any payment method without separate contracts of one-off integrations
- Creates automated payment reminders through highly customizable emails
- Gives direct payment option on the invoice itself
- Supports invoicing in 13 languages
- Provides download reports to find out the amount of tax collection for easy remittance
- The user interface needs improvement
- In the eagerness to block fraudulent transactions, it also sometimes prevents legitimate transactions
It offers several customized pricing plans that you can access here.
Invoice2go is a simple and intuitive invoicing software that allows users to make the payment from the simplicity of a click. It offers reliable support with global payment gateways, including Xero, PayPal, and Square.
It offers all the functionalities that a contractor, freelancer, or small business would need.
- Automatic Time Tracking: Bill more hours by keeping track of your time automatically and add billable time to the invoice.
- Payment Reminder: Send automated payment reminders through emails to ensure on-time payments.
- Send Invoice Through Multiple Channels: Create an invoice link and send it through multiple channels, including Google Hangouts, WhatsApp, email, text message, and Facebook Messenger.
- Measure Performance: Easily track the performance of your business through easy to understand charts and immersive graphs.
- You can create invoices on the spot instantly after finishing the job
- Allows you to select from a wide range of templates to create a highly customized template for your business
- Easily track expenses by merely clicking a picture of the bill
- Track every moment through from the job site or field and easily add in your invoice
- Accepts all major debit and credit cards
- Enables you to track invoices and alerts you when your clients view the invoice
- Requires elaborate setting for non-US users
- Lacks various advanced features
The paid plans start from USD 1.49 per month and range up to USD 16.99 per month.
Bill.com offers an intuitive progress bar to track the payment of invoices. It contains milestones, including invoice sent, the bill created, approved, and payment incoming, among others.
It’s best for businesses that are looking at a more automated method of payments.
- Powered by Machine Learning (ML): ML enables Bill.com to automatically enter data and also prevents the generation of duplicate invoices.
- Advanced Payment Methods: Receive payments through international wire transfer, ACH, and virtual cards.
- Security: It ensures end-to-end encryption of transit data through Transport Layer Security (TLS).
- Cloud-Enabled: Allows seamless collaboration with team members and customers in real-time.
- Easily get access to an audit trail to enter, approve, and pay bills efficiently
- Ensures documentation retention to decrease its approval time
- Enables automatic payments through invoices
- Easily edit/cancel payments or make any other customization
- Helps you manage the permission of users
- Provides powerful integration with ERP tools
- Offers limited approvals
- Doesn’t provide auto payment options
Its paid subscription plans start from $39 per month and go up to $69 per month. It also offers a quote-based ‘Enterprise’ plan.
Tipalti is an end-to-end payable platform that efficiently manages issues such as late payments, noncompliance, administrative overload, human errors, among others. It also offers excellent customer support across 190 countries.
With a global reach in 190 countries, it’s a capable option for large corporations with footprints all over the world.
- Supplier Management Portal: The portal allows vendors to manage taxation data easily. You can then verify the data by the Remittance Validation Engine for compliance through 26,000 national and international standards.
- KPMG-certified App: It collects both W-9 and W-8 US tax forms to withhold the payments of non-compliant payees.
- Payment Automation: It’s capable of automating more than 50 percent of global, manual, and mass payments across 190 countries.
- Simplified Payment: It enables the business to take payment from almost every country globally through 6 payment options, including Paypal, Prepaid Debit Card, Wire, US ACH, Local bank transfer, or Global ACH, among others.
- It’s one of the best solutions for AP, payment reconciliation, and financial reporting
- It consolidates data across different payment gateways to renders directly to ERP applications
- Its multi-entity architecture ensures unified AP operations across different brands, subsidiaries, business units, and international divisions
- Achieve bi-directional sync with an open API architecture
- Works well on both PC and Mac
- Implement APIs to popular systems, including Microsoft Dynamics GP, Oracle, and Xero, among others
- AI-driven approval and line-item workflow
- Achieve touchless invoice processing with inbuilt OCR
- Not the best software for beginners
- Doesn’t provide live chat support
Its pricing is available on request only.
Sending invoices to your clients on time is likely to be one of the essential tasks of your business.
An invoice specifies the items purchased, the due of the payment, and the terms and conditions of the same.
To put it simply, invoicing software helps businesses create invoices, along with a list of services/products requested/delivered. It also helps you compile corresponding costs, keep track of the invoices, provide reminders, and more.
Invoicing tools are suitable for your business if you want to avoid spending the extra budget on a dedicated finance team.
Here are some of the benefits of using invoicing software:
- Reduces late payments – It can streamline your process of billing and keeping a tab on all clients. This helps monitor and collect any overdue payments, increasing your cash in hand.
- Reduces missed payments – Invoicing tools can help your monitor and schedule your, which helps eliminate missed payments.
- Eliminates human error – It helps reduce the factor of human error since the entire process is taken care of by the software.
- Protects against fraud – Invoicing tools usually come with very high-security measures, protecting you against unwarranted attention and hackers.
Invoicing tools are powerful and replete with a lot of functionalities. However, most of them are easy-to-use and learn.
Using it properly means taking advantage of the multiple in-built powerful modules.
So how do you use it?
- Use anywhere you want – Most of these tools are cloud-based. Hence, it doesn’t matter where you are. You don’t need to stick to a traditional way of invoicing anymore. Moreover, you can customize and create your templates, fonts, colors, and logo.
- Integrate with third-party payment gateways – You no longer have to keep a tab on clients to make payments since most of these tools come equipped with modern payment gateway interfaces that allow clients to make payments directly. Also, make sure to integrate with payment gateways like PayPal, Skrill, Intuit, to make the payment process more comfortable.
- Generate financial reports – generate error-free financial reports to keep track of your payments. You can also convert them into PDF files and share them via emails.
- Leverage in-built data analytics tools – You can also take advantage of the in-built data analytics module of most of these tools. These tools help you access and study facets like how many payments are on time, average payment cycle time, and more. You can generate actionable insights and incorporate them into your business for long-term benefits.
Every business is different and has varying needs. Some may need a tool for merely invoicing, while others may prefer a holistic tool to take care of all the accounting processes in the enterprise.
The final choice is down to the user, but here are some features that are necessary for an invoicing tool:
The software should provide you with a range of templates to choose from. Professional-looking templates help boost your image in the marketplace and also build brand equity.
Keeping customer records is essential as it helps segregate customers and pool personal details with their purchase details. It also enables you to club relevant information in a single database, which you can search and access readily in the future.
Cards are the preferred mode of payment for a majority of customers. In case a client makes repetitive purchases, the feature of recurring billing for credit card payments can also come in handy.
Some businesses may require automatic billing of long-standing clients every month. Instead of having to repeat the same task every month, repetitive billing can save time and effort.
If you conduct business with clients from several different countries or have plans for global expansion, then you need to have an invoicing tool that is compatible with multiple currencies. Xero is an excellent example of such a tool.
While making invoices, real-time exchange of information can be crucial. Businesses sometimes need to receive or send messages for better understanding. That’s why the information exchange feature can come in handy.
That ends the list of the best invoicing tools available today. These tools help you generate correct invoices, automate alerts, connecting with your accounting software, and stay in touch with your customers.
It’s essential to make the correct choice based on your requirements.
For instance, if you’re a freelancer or run a small business, then you might want to go for cost-efficient solutions like ZipBooks or Wave. However, if you want a slightly premium tool with all the relevant features, you can consider Freshbooks that come at a moderate subscription price.
And if you don’t have any budget constraints, then you can go with premium options that offer all advanced features like QuickBooks Enterprise and BrightPearl. Consider your requirements carefully and select the most suitable option for your business.
Which one of the above invoicing software do you like best? Let me know your feedback in the comments below.