If you’re a small business owner, it’s no secret how important invoicing is in keeping your cash flow flowing. But knowing which invoicing software to use can be tricky as the market is flooded with options. Luckily, we’ve researched for you and put together an up-to-date list of the best invoicing software for small business owners in 2023.
So, let’s explore the top invoicing software options to help streamline your billing process and ensure efficient financial management for your business.
What Is Invoicing Software?
Invoicing software is a software program that helps businesses keep track of their invoices and payments. It can help businesses create, send, and track invoices and keep tabs on when payments are due and received.
Invoicing software can also help businesses manage their finances by tracking spending and creating reports. Some invoicing software programs also integrate with other financial software, such as accounting software or payment processors, making it easier for businesses to track all their financial data in one place.
Why You Should Consider Using Invoicing Software for Small Business
Here are key reasons why you should use invoicing software in your business:
- Invoice software often includes features that save time, such as the ability to create and send invoices quickly, automatic invoice numbering, and the option to save frequently used phrases or paragraphs.
- With invoicing software, you can also track payments and expenses. This information can be helpful when preparing tax returns or other financial documents.
- Online invoicing lets you see when online payments are made and received, which can help you keep tabs on your cash flow and budget.
- A well-designed invoice that is easy to read will give a good impression to your customers.
Last but not least, most invoicing software allows you to understand your business better. This is because analytics provided by those software applications can help you understand which products sell fast and which ones move slower.
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Top Invoicing Software for Small Businesses: Our Methodology
Choosing the right invoicing software is a crucial step for small businesses, impacting how you manage your transactions, cash flow, and customer relationships.
The perfect tool should simplify your work, ensure you’re organized, and help you get paid promptly.
In our evaluation of invoicing software suited for small enterprises, we’ve used a comprehensive approach to address various operational needs and financial practices.
Here are the critical areas we focused on, ranked on a scale from 1 (least critical) to 5 (most critical):
Ease of Use and Interface (5/5)
The software should boast an intuitive interface, making it easy for you to create, customize, and track invoices with minimal hassle. Complex systems can slow down your billing process, negatively affecting cash flow.
Invoicing and Billing Features (5/5)
A wide range of features is essential. This includes the creation of detailed invoices, recurring billing, automatic reminders, late fees, and the ability to accept deposits or partial payments.
Payment Integrations (5/5)
It should support various payment gateways, giving your customers the flexibility to pay via their preferred method. This convenience can often translate into you getting paid faster.
Multi-Currency and Language Support (4/5)
For businesses operating globally, the software needs to support multiple currencies and languages. This feature will enable you to serve a broader client base without additional hassle.
Reporting and Analytics (5/5)
Insightful reporting on your invoices, payments, and overall cash flow can help you make informed decisions. The software should provide easy-to-understand analytics on your financial health.
Tax Compliance and Financial Regulations (5/5)
The tool should support compliance with local tax regulations and financial standards, reducing your risk of legal issues and ensuring accuracy in tax calculations.
Data Security and Backup (5/5)
Top-tier security measures are non-negotiable to protect sensitive financial data. The software should also offer reliable backup options to prevent data loss.
Cost and Value for Money (5/5)
We assess whether the software’s pricing plans align with the features offered, ensuring you get maximum value for your investment without straining your budget.
Customer Support and Resources (4/5)
Responsive customer service and a wealth of learning resources can significantly enhance your experience, especially when transitioning to a new system or during the busy season.
Scalability and Customization (4/5)
As your business grows, your invoicing needs may change. The software should be scalable and customizable, adapting to your evolving business requirements.
Integration with Other Business Tools (5/5)
Compatibility with other systems used in your business (like CRM, accounting software, or project management tools) is essential for streamlining your operations.
Through this thorough examination, we identify invoicing software options that encompass not just the technical requirements but also contribute to a smoother, more efficient financial workflow for small business owners.
Top Invoicing Software Solutions
Before digging too deeply into the list, here is a quick reference table that lets you quickly compare the top invoice software options:
|Zoho Invoice||Craft professional invoices, bill in multiple currencies, automate payment reminders||Free|
|Quickbooks Online||Create and track invoices on the go, integrate with popular third-party apps||Starts at $15 per month|
|Square Invoices||Send digital invoices and estimates, enable pay later option||Forever-free plan, $20 monthly plan|
|Brightpearl||Tailored for retail businesses, handles proforma and actual invoices||Flexible pricing based on business needs|
|PaySimple||Integrates invoicing with payments, ideal for service-based businesses||Starts at $69.95 per month|
|FreshBooks||Cloud-based accounting software, automated invoicing, online payment acceptance||Starts at $16.50 per month|
|Wave||Budget-friendly invoicing software, customized invoices, automated billing||Free|
|InvoiceSimple||Intuitive invoicing app, easy invoicing for small businesses and freelancers||Free|
|Sage Intacct||Ideal for merchants with complex invoicing flow, real-time payment status visibility||Pricing based on selected features|
|Xero||Customizable online invoices, automatic reminders, accept instant payments||Starts at $25 per month|
|Xero||Customizable online invoices, automatic reminders, and instant online payments.||Starts at $25 per month|
|Invoice2go||Create invoices on the spot, send via various channels, and customizable invoice templates.||Starter plan at $5.99 per month|
|ChargeBee||Automates recurring billing, supports multiple currencies and subscription models, real-time analytics for performance.||Free plan available|
|Harvest||Efficient time-based invoicing, automatic invoicing, integrated payments, and client management.||Free-forever plan, $12 per user/month|
|Invoice Ninja||Free invoicing tool, quote and invoice creation, tracking payments, and setting up recurring invoices.||Free plan available|
|Invoicera||Total invoice and billing management, customization options, and control of multiple businesses through a single account.||Starter plan available for free|
|Hiveage||Simplified invoicing, payment and cash management, easy tax calculation, and discounts.||Free plan available|
|BillBooks||Intelligent invoicing platform, assisted scheduling, automatic payment reminders, and mobile-optimized invoicing app.||Starting at $7.95 per month|
|ZipBooks||Invoicing and automation of the billing process, unlimited invoices and payment tracking.||Free invoicing tool|
|Bill.com||Managing accounts payable and accounts receivable, track payments, request money, and schedule payments.||Starting at $45 per user/month|
|SliQ Invoicing||Simple and powerful invoicing program, unlimited invoices and quotes, easy setup and usage.||£6 (or $7.3) monthly plan|
Here are the top invoicing software programs to pick the best invoicing solution for your business:
1. Zoho Invoice
Zoho Invoice is a free online invoicing software program for small businesses. It enables you to craft professional invoices, bill in the currency you want, and automate payment reminders. With Zoho Invoice, you can even automate recurring invoices. It simplifies billing so you can focus better on your business.
The Zoho Invoice tool is available for free.
2. Quickbooks Online
QuickBooks Online makes it easy to create and track invoices on the go. SMB owners can store HSN/SAC codes, generate invoices and automatically calculate payable taxes. QuickBooks Online ensures breezy invoicing and payment clearance. It also integrates well with hundreds of popular third-party apps.
The base plan of QuickBooks Online costs $15 per month. Higher plans with features such as expense tracking, analytics, and inventory management are also available.
3. Square Invoices
Square Invoices is an easy-to-use tool for sending digital invoices and estimates. It enables businesses to create invoices, track payments and monitor analytics from one place. Square Invoices even allows businesses to enable the pay later option. It’s an ideal tool for managing your transactions while maintaining customer relationships.
Square Invoices has a forever-free plan with all invoicing features. It also has a $20 monthly plan with more finance management utilities.
Brightpearl has flexible pricing and invoicing features to manage cash flow efficiently. You can even keep track of part payments and bank deposits and have a bird’s eye view of each payment status.
Brightpearl tailors its pricing to business needs.
- READ MORE: How to Create an Invoice That Gets Paid
PaySimple integrates invoicing with payments to simplify small business operations. It’s beneficial for service-based businesses that need to handle payments from multiple points of sale. PaySimple makes the workflow manageable with its online invoicing and easy processing of online payments.
Pricing for PaySimple starts at $69.95 per month.
FreshBooks is a cloud-based accounting software designed with small businesses in mind. It puts invoicing on autopilot. The professional automated invoicing of FreshBooks enables the quick creation of clean and customizable invoices. You can also accept payments online, track their status and send reminders for late payments.
FreshBooks’ pricing starts at $16.50 per month for unlimited billable clients. Higher plans with better tracking, analytics, and reports are also available.
Wave app helps in creating customized invoices and automating the billing process. You can even set up recurring invoices and automate payment processing for repeat customers.
Wave invoicing app is free for invoicing.
InvoiceSimple is an intuitive invoicing app for business owners. It touts itself as the simplest way for small businesses and freelancers to invoice customers. Invoice Simple makes invoicing straightforward for businesspeople. It allows invoicing via mobile and laptop to help you stay organized throughout.
You can try Invoice Simple for free.
9. Sage Intacct
Sage Intacct is ideal for merchants with a complex invoicing flow who need granular control over the process. This powerful tool provides complete control over invoicing with real-time visibility of payment status. A subscription to Sage Intacct includes access to a community of industry peers. Business owners can interact with them and get help and industry updates.
The pricing of Sage Intacct’s plans depends on the features you select for your business.
Xero online invoicing is another intuitive tool for small businesses. It enables you to customize your online invoices, set automatic reminders, and invoice directly from the app. You can choose from custom, ready-made, or pre-set invoices without leaving the app. With Xero, you can also accept instant payments online. It makes it easy for customers to pay you.
Pricing plans for Xero start at $25 per month, with higher plans for comprehensive accounting tools.
- READ MORE: 12 Printable Invoice Template Options
More Invoicing Software Options for Small Business
Here are some more billing and invoicing software for small businesses:
Invoice2go is an easy-to-use, mobile-friendly invoicing tool to create invoices on the spot. It enables business owners to send invoices via email, messenger, and even text. For new businesses, Invoice2go is a time-saver. You can customize the business logo, fonts, and colors and create an invoice immediately.
Invoice2go has a range of plans, with the Starter plan at $5.99 per month.
ChargeBee is a popular invoicing tool for businesses in the Saas and subscription space. It automates recurring billing, so you don’t need to process manual invoices. ChargeBee supports multiple currencies and subscription models and lets you manage global customer lists. You can also access real-time analytics to keep track of your invoicing performance.
ChargeBee has a free plan, offering essential invoicing and subscription management features. Higher plans are also available.
Harvest is an online invoicing and billing software tool that automates time-based invoicing efficiently. It’s the most suitable for businesses providing services. Harvest allows for automatic invoicing, integrated payments, and client management, all in one place. Depending on availability, you can bill clients automatically or assign work to your team.
Harvest has a free-forever plan for one user. It has a $12 per user per month plan for multiple users and projects.
14. Invoice Ninja
Invoice Ninja is a free-to-use invoicing tool. It enables business owners to quote, invoice, and take payments for free. It also helps track billable time, auto-invoicing, and setting up recurring invoices. The facility to take advance deposits and partial payments further ease the troubles. You can even set up a client-side invoice & payment portal with Invoice Ninja.
Invoice Ninja has a free plan along with higher plans for more features.
Invoicera is a total invoice and billing management system. It supports all types of businesses, from small businesses to enterprises. Invoicera easily integrates with existing business management tools to be customized as per the business. And it allows one person to control multiple businesses through a single account.
Invoicera’s Starter plan is available for free with limited features. The higher plans offer access to more advanced features.
Hiveage is a cloud-based invoicing tool for small businesses. It doesn’t burden you with a host of accounting features. With Hiveage, you can manage payments and cash with ease. Its simplified interface makes it easy to bill clients and keep track of revenue. You can easily enter regular tax amounts, discounts, and shipping charges.
Hiveage starts with a free plan. Upgraded plans are also available, giving access to many more features.
Billbooks is an online invoicing platform built specifically for small businesses. It’s an intelligent tool that speeds up invoicing. It offers assisted scheduling and automatic payment reminders for different time zones to ensure more efficient payments. Billbooks is a mobile-optimized invoicing app that simplifies invoicing and payments.
The pricing for Billbooks has been designed keeping small businesses in mind. The base price is $7.95 per month.
Zipbooks is an essential invoicing application for small businesses to manage and automate the billing process. It allows for unlimited invoices and payment tracking. Zipbooks has many relevant features, like outlining estimates and managing customer payments in one place. It also comes in handy for time-tracking and automated billing.
Zipbooks is a free invoicing tool with more features available on higher plans.
Bill.com is an online invoicing tool to save time and money. It lets business owners manage accounts payable as well as accounts receivable. You can efficiently keep track of payments, request money, and schedule payments. Its two-way sync with accounting software makes invoicing easier. So, managing financial transactions is a breezy experience with Bill.com.
The starting plan of Bill.com is priced at $45 per user per month.
20. SliQ Invoicing
SliQ Invoicing is a simple yet powerful invoicing program for small businesses. It lets business owners create invoices, payment reminders, and record payments. It’s simple to set up and use. And you can send unlimited invoices and quotes. SliQ Invoicing also helps handle invoices for multiple businesses with one admin panel.
SliQ Invoicing has a £6 (or $7.3) monthly plan. You can upgrade to a higher plan to onboard more team members.
What Is the Best Free Invoicing Software for Small Business?
When it comes to finding the best free invoicing software for small businesses, Zoho Invoice emerges as the top choice. With its user-friendly interface and robust features, Zoho Invoice provides small business owners with a comprehensive solution for managing invoices effectively. From creating professional-looking invoices to tracking payments and generating insightful reports, Zoho Invoice offers a seamless invoicing experience.
If you’re looking for more options in the realm of free billing software, Wave, FreshBooks, and Invoicera are worthy contenders. Wave stands out for its simplicity and versatility, offering invoicing, accounting, and receipt scanning features. On the other hand, FreshBooks combines user-friendly invoicing tools with advanced accounting capabilities, making it suitable for small businesses with more complex financial needs. Invoicera provides a range of invoicing features along with expense management and time-tracking functionalities, making it a well-rounded choice for small business owners.
Whether you choose Zoho Invoice, Wave, FreshBooks, or Invoicera, these free invoicing software options empower small business owners to streamline their billing processes, save time, and ensure prompt payment collection. Take advantage of the features and capabilities offered by these software solutions to enhance your invoicing efficiency and maintain a healthy cash flow for your business.
What Is the Best Way to Create Invoices for Your Business?
By opting for the right invoicing software, you can enjoy a multitude of benefits that go beyond simply using free customizable invoice templates. Here are some advantages of using the right invoicing software:
- Efficient Invoice Creation: With the right invoicing software, you can quickly and easily create professional invoices. These software solutions offer intuitive interfaces and pre-designed invoice templates that can be customized to suit your branding and specific needs. This saves you time and ensures that your invoices are accurate, consistent, and visually appealing.
- Seamless Estimate Generation: Invoicing software often includes the functionality to create estimates or quotes for your clients. This enables you to provide detailed cost breakdowns and project timelines to potential customers, helping you secure more business. The ability to convert estimates into invoices with a few clicks streamlines your workflow and eliminates manual data entry.
- Overdue Invoice Tracking: Keeping track of overdue invoices is crucial for maintaining a healthy cash flow. Premium invoicing software allows you to set up automated reminders and notifications for overdue payments. This helps you stay on top of outstanding invoices, send reminders to clients, and take necessary actions to collect payments promptly.
- Invoice Customization: The right invoicing software offers extensive customization options, allowing you to tailor your invoices to reflect your brand identity. You can add your logo, choose colors that align with your brand, and include personalized messages or terms and conditions. This level of customization helps create a professional image for your business and reinforces your brand identity.
- Time-Saving Automation: Premium invoicing software often includes automation features that can significantly reduce manual tasks. These features may include recurring invoice generation, automated payment reminders, and integration with payment gateways for seamless online payment processing. By automating repetitive tasks, you can save time and focus on other aspects of running your small business.
In short, utilizing the features and capabilities offered by the right invoicing software will streamline your invoicing processes, enhance professionalism, improve cash flow management, and save valuable time. Consider investing in a premium invoicing software solution that aligns with your business needs and empowers you to create and manage invoices more efficiently.
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