The Best Invoicing and Billing Software 2024 – Top 10 Compared

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Whether you’re a freelancer, small business owner, or a manager, one of the apparent reasons for using invoicing software is to simplify your billing processes. The best invoice software offers automated workflows for tracking projects, payments, and, most importantly, converting quotes to invoices at an affordable price.

With many options available for different business needs, choosing the right one is critical. That’s why I’ve carefully selected the 10 best invoicing software solutions to help you make an informed decision.

The Best Invoicing Software for 2024

FreshBooks - Best for Instant Invoicing

70% off for first 3 months
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Zoho Invoice - Best for Free Invoicing

Free plan available
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Xero - Best Invoicing for Small Businesses

70% off for 6 months
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Melio - Best for Payment Simplification

Transaction fees only
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HoneyBook - Best for Online Invoicing

7-day free trial
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Square Invoices - Best for Recurring Billing

30-day free trial
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Invoice Ninja - Best for Creating Customizable Invoice

Free plan available
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Invoice Home - Best for Easy Invoicing

Free plan available
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Avaza - Best for Contractors’ Project Collaboration

Free plan available
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Invoicely - Best for Multiple Small Businesses

Free plan available
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The Best Invoicing Software

  1. FreshBooks: Best for Instant Invoicing
  2. Zoho Invoice: Best for Free Invoicing
  3. Xero: Best Invoicing for Small Businesses
  4. Melio: Best for Payment Simplification
  5. HoneyBook: Best for Online Invoicing
  6. Square Invoices: Best for Recurring Billing
  7. Invoice Ninja: Best for Creating Customizable Invoice
  8. Invoice Home: Best for Easy Invoicing
  9. Avaza: Best for Contractors’ Project Collaboration
  10. Invoicely: Best for Multiple Small Businesses

The Best Invoice Software Reviewed

Having tested several HR and invoicing solutions, I’ve narrowed down the list using criteria like providers that offer the best capabilities for a range of users, ease of use, pricing, and unique features.

1. FreshBooks – Best for Instant Invoicing

FreshBooks Logo

Free Trial 30-day free trial
Price From Starting from $19/month (60% off for first 4 months)
Top 3 Features Recurring Invoice Generator, Payment Reminders, Multiple Invoices
Why We Picked It

FreshBooks’s simplicity and customization make it a suitable option for instant invoicing. I found that it delivers a great aesthetic, with impressive invoices and “thank you” emails that you can fully customize with your brand colors, font, and logo, helping to enhance your brand experience. With its support for flexible payment options, you can choose several popular payment methods from your invoice, including debit cards, credit cards, and Apple Pay.

Features
  • Recurring Invoice Generator: Freshbooks’ invoice generator is very easy to use. For instance, if you bill by the hour, you can easily add your tracked time to invoices and add billable expenses to your client. Plus, you can keep customers in the loop by sending summary points at any stage.
  • Payment Reminders: You can also use FreshBooks’ automation tools to send payment reminders, set up recurring invoices, and charge late fees using your customers’ on-file credit cards.
  • Multiple Invoices: You can easily add due dates, specific payment terms, tax calculations, discounts, and currency specifications to each invoice. With these features, you can create multiple invoices in minutes.
    Pricing

    FreshBooks’ pricing plan is feature-based and competitive. Its prices are in four tiers, giving businesses the flexibility to choose based on their needs.

    Plan Lite Plus Premium Select
    1 month $19/month $33/month $60/month Quote-based
    1 year $228/year $396/month $720/month Quote-based

      While FreshBooks’ Lite plan is feature-rich enough to support startups and freelancers with less than 5 clients, established businesses would prefer its Plus plan, which allows recurring invoices and up to 50 clients’ invoicing.

      FreshBooks also offers a substantial discount on their pricing plans. You can save 60% off for the first 4 months on monthly plans. If you opt for annual billing, you’ll receive an additional 10% discount on top of the 60% off for 4 months. This promotion allows you to try FreshBooks’ features at a significantly reduced cost, whether you prefer monthly or annual billing.

      Who's It Best For
      FreshBooks is suitable for freelancers, self-employed, and small businesses that seek instant and customizable ways to approach invoicing. FreshBooks customization, invoice templates, and easy usage facilitate quick invoice generation for businesses.

      Pros

      • Multiple customization options to facilitate instant invoicing
      • Variety of payment options
      • Take up-front deposits
      • Allows you to invite your accountant

      Cons

      • Unlimited invoicing to an unlimited number of clients is only available on its highest tiers
      • Adding more team members makes it expensive
      FreshBooks

       

      2. Zoho Invoice – Best for Free Invoicing

      Zoho Invoice

      Free Trial Yes, Invoicing is free
      Price From Starting from $15/org/month billed annually
      Top 3 Features Project Management, Integration with Zoho Products, Professional Invoice Templates
      Why We Picked It

      Zoho Invoice is an online invoice management software for small businesses that offers features similar to FreshBooks, such as customizable invoices, the ability to set up recurring invoices, and automated reminders for invoice payments. However, it distinguishes itself with its free-to-use features and support for Mac users.

      Features
      • Professional Invoice Templates: Create tax-compliant invoices in one click. It offers multiple and flexible template customization, allowing you to create a professionally-looking invoice that matches your brand identity.
      • Integration with Zoho Products: As a free invoicing software, Zoho offers every feature you may need to experience seamless payment management. However, if you need more functions, you can easily integrate with other Zoho products such as Zoho Billing, Zoho Books, Zoho Inventory, and more.
      • Project Management: Log time and manage projects, allowing you to monitor every project on your plate and plan accordingly.
      Pricing

      Zoho Invoice is entirely free to use. Despite being free, you can easily add up to two organizations. However, businesses that need more invoicing features may need to choose from any of its priced plans. See the table below.

      Plan Free Standard Professional Premium Elite Ultimate
      1 month $0/month $20/month $50/month $70/month $150/month $275/month
      1 year $0/month $15/month $40/month $60/month $120/month $240/month

        Zoho’s free plan comes at no cost and is suitable for businesses with an annual revenue of less than 50,000 USD. The Standard plan supports three users and includes everything in the free plan, with the management of up to 5,000 invoices, custom field addition, journal templates, custom reports, API access, and sales tax tracking.

        Zoho Invoice offers price plans that scale with business needs, making it a fair deal. Its free offering makes it particularly attractive to users on a low budget compared to competitors like FreshBooks and Xero.

        Who's It Best For
        Zoho Invoice is a great option for freelancers, agencies, entrepreneurs, and consultants who need free invoicing software to manage projects and expenses, invoices, and track payments.

        Pros

        • Offers free application for Mac users
        • Offers multiple professional invoice templates
        • Free to use and allows recurring invoicing
        • Integrates easily with other business tools and Zoho apps

        Cons

        • Limits the number of invoices you can send each year to 500 
        • It only allows you to create three projects
        • You can only add up to two users
        • It may not be suitable for a business that needs to send multiple invoices monthly
          Zoho Invoice

           

          3. Xero – Best for Small Businesses

          Xero Logo

          Free Trial Yes, 30-day free trial
          Price From Starting from $15/month (70% off for first 6 months)
          Top 3 Features Automatic Quotes to Invoice, Multiple Invoicing, Bulk Invoice Importation
          Why We Picked It

          Xero is a comprehensive accounting software that supports an unlimited number of users. While Xero’s invoicing feature is similar to Zoho’s, its accounting features are more affordable for growing small businesses on a low budget. Similarly to other invoicing software on the list, you can automate recurring invoices to save time.

          Features
          • Automatic Quotes to Invoice: You can quickly turn your quotes into payment information whenever you need to bill your clients. Xero allows the creation of invoices from a quote, eliminating manual input.
          • Multiple Invoicing: Whenever you need to send multiple invoices to a client, Xero saves you the time and effort of sending them separately. You can easily select and combine them into a single PDF and email your client.
          • Bulk Invoice Importation: Users with separate accounting software can transfer their invoices from another accounting platform into Xero using its bulk import feature.
          Pricing

          Xero invoicing price information is connected to its accounting software functionality. It offers three price plans to support different business needs.

          Plan Early Growing Established
          1 month $15/month (Save 70% over 6 months) $42/month (Save 70% over 6 months) $78/month (Save 70% over 6 months)

            Xero’s Early plan is suitable for startups as it limits the number of invoices and quotes to 20. Its Growing plan offers businesses unlimited invoicing and billing, making it a suitable option for growing small businesses.

            While there’s no free plan, its 30-day free trial allows you to explore its functionalities.

            Who's It Best For
            Xero is a good option for small businesses seeking invoice software with unlimited invoicing and accounting functionalities to manage their billing and payment.

            Pros

            • Offers 30-day free trial
            • Bulk invoice importation
            • Bundled with accounting functionalities
            • 1000+ integrations to support other business tools

            Cons

            • Lack of free forever plan
            • Limited invoicing on its basic plan
            • Multiple currencies support is only available on its highest plan

             

            4. Melio – Best for Payment Simplification

            melio logo

            Free Trial Yes, Start for free
            Price From No monthly plan, but transaction fees
            Top 3 Features Payment Categorization, Synchronization with Accounting Software, Reminders Tracker
            Why We Picked It

            Melio is an online payment software that allows businesses to pay vendors, contractors, and suppliers and receive payments. The platform also helps users save time on admin tasks by letting them track and manage payment requests on any device, mobile, or desktop. However, unlike the other solutions on our list, Melio isn’t built with invoice generation in mind and offers less functionality in this area.

            Features
            • Reminders Tracker: Melio’s payment software tracks emails and reminders, including when payments are scheduled, being processed, and when they’re made in full.
            • Synchronization with Accounting Software: As Melio synchronizes with popular accounting tools like QuickBooks and Freshbooks, you can easily send invoices to clients.
            • Payment Categorization: Melio instantly matches all incoming payments with invoices to help you avoid any mistakes when tracking and recording them.
            Pricing

            Melio offers no price plan, but charges for transactions. Its transaction fees are based on the chosen payment method. Below are some of Melio’s transaction fees and payment channels.

            • ACH bank transfer – Free
            • Check Mailing – $1.50 (The first two per month are free)
            • Pay by card – 2.9%
            • Instant transfer – 1%, up to $50
            • Fast ACH bank transfer – 1%, up to $30
            • Fast check – $20 (Get a check from your vendor within three business days)
            • International payments –  $20 flat fee (USD only)
            Who's It Best For
            Melio is suitable for large businesses with more complex operations and a number of vendors seeking a simplified way to manage their payments.

            Pros

            • Pay vendors and manage invoices from a single application
            • No monthly fee
            • Offers clients several ways to pay from their invoices
            • Send personalized payment links

            Cons

            • Additional fees for payments
            • It does not offer invoice templates, only sending
            • No advanced accounting features compared with Xero

             

            5. HoneyBook – Best for Online Invoicing

            honeybook logo

            Free Trial Yes, 7-day free trial
            Price From Starting from $16/month billed annually
            Top 3 Features Online Document Signing, Online Scheduling, Automation
            Why We Picked It

            HoneyBook is an all-in-one business management tool for small businesses, offering several useful features and free resources. It provides tools for invoicing, contract templates, scheduling, forms, documents, and more. It also offers basic features needed to streamline online payment and billing processes.

            Features
            • Automation: HoneyBook provides a diversity of automation, such as payment reminders, which is important in invoicing. With the automated payment reminder, HoneyBook helps you check up on clients before and after the due date.
            • Online Document Signing: Legalize your documents, invoices, and contracts with your signature and clients easily with the e-signature. I found it to be similar to DocuSign, which is easy to use.
            • Online Scheduling: The online scheduling tool is another way to enhance professional communication with clients. This tool helps you stay organized and avoid last-minute meetings.
            Pricing

            HoneyBook offers three tiers of price plans. See the list below.

            Plan Starter Essentials Premium
            1 month $19/month $39/month $79/month
            1 year $16/month $32/month $66/month

              HoneyBook’s Starter plan provides small businesses with all the tools needed to run their business smoothly. Its features include unlimited clients and projects, invoices and payments, calendars, professional templates, and more.

              There is no free plan, but its 14-day free trial offers users a great opportunity to test the platform.

              Who's It Best For
              HoneyBooks is suitable for businesses seeking an all-in-one online invoicing software to facilitate a good client experience.

              Pros

              • Easy to use
              • Facilitates good client experience
              • Provides automation to support online invoicing
              • Helps in keeping projects organized

              Cons

              • Short duration of the free trial
              • Its setup can be overwhelming
              • Customer support needs improvement

               

              6. Square Invoices – Best for Recurring Billing

              Square Online

              Free Trial Yes, 30-day free trial
              Price From Starting from $20/month + discounted processing rates
              Top 3 Features Square Checking, Invoice Tracking, Batch Invoices
              Why We Picked It

              Unlike Zoho, which has a monthly invoicing limit as a free invoice software, Square bridges this gap by providing unlimited invoice sending and recurring schedules. It offers business-to-clients secure commitments with its e-signature contracts, which your clients can sign digitally from anywhere. Beyond invoicing, Square supports businesses with easy-to-use and AI-generated contract templates that you can adapt to your unique needs.

              Features
              • Square Checking: Get real-time reports, allowing you to access your cash flow and make data-driven decisions. With its Square Checking functionality, you can access valuable information about your Square sales.
              • Invoice Tracking: Square ensures you don’t only send invoices to your clients. It also offers you the tool to gain insights by tracking their progress in real-time.
              • Batch Invoices: You can easily send the same invoice to multiple customers using Square’s batch invoicing.
              Pricing

              Square offers a free and paid plan. The paid plan is for growing businesses that need more advanced features.

              Plan Free Plus
              Per Month $0/month + processing rates $20/month + discounted processing rates
              Processing Rates 3.3% + 30 cents per online card payment

              1% with minimum fee of $1 per online ACH payment

              2.9% + 30 cents per online card payment

              1% with maximum fee of $10 per online ACH payment

                Square’s free plan suits startups or businesses with basic and unlimited invoicing needs. On the other hand, its paid plan offers more streamlining and time-saving features, such as a milestone-based payment schedule, custom fields, sending multiple invoices simultaneously, and more.

                Who's It Best For
                Square invoice allows businesses to automate recurring bills and auto-remind clients for upcoming or due payments. With its unique features, it’s best for businesses, retailers, and any business type that needs to streamline their work and billing needs with advanced and time-saving invoicing features.

                Pros

                • Its free plan supports unlimited invoicing
                • Supports invoice tracking
                • Offers square checking
                • Automates recurring bills

                Cons

                • Its paid plan may be expensive for startups
                • It does not support multi-currency acceptance
                • Most customization is available on the paid plan

                 

                7. Invoice Ninja – Best for Creating Customizable Invoice

                Invoice Ninja Logo

                Free Trial Yes, Free plan
                Price From Starting from $12/month billed monthly
                Top 3 Features Custom Taxation Settings, Branded URL, Customize Invoice Designs
                Why We Picked It

                Invoice Ninja is another invoice software that makes payment easy for businesses. It offers custom fields such as client information, product columns, and more, allowing you to adapt the invoice to your company’s specific needs. It also has various unique features, one of which I found particularly fascinating: the ability to create groups of custom settings that can be used for different types of clients.

                Features
                • Custom Taxation Settings: Invoice Ninja allows you to adjust tax rates based on your business needs. Also, with its inclusive and exclusive tax settings, you can decide whether the tax should be included in an item or added on top of it.
                • Branded URL: As an invoicing software with advanced customization, Invoice Ninja allows you to create a unique DNS for your record entry. You can then send this customized URL to your client.
                • Customize Invoice Designs: You can easily customize the outlook of your invoice to match your brand identity, even with its free plan.
                  Pricing

                  Invoice Ninja offers flexible price plans to support different business needs.

                  Plan Free Ninja Pro Enterprise
                  1 month $0/month $12/month $16/month
                  1 year $0/month $120/year $160/year

                  With Invoice Ninja’s amazing free plan, many small businesses with 20 or fewer clients can get more done. Its free plan features include unlimited invoices to 20 clients, invoice branding with a logo, inventory management, client-side invoice portal and automatic currency conversion.

                  While Invoice Ninja offers more affordable monthly and annual plans compared to providers like FreshBooks, Xero, and Zoho, it specializes primarily in invoicing and lacks the advanced accounting functionalities found in these competitors.

                  Who's It Best For
                  Invoice Ninja is highly recommended to small businesses that seek invoicing software with advanced customization like branded URL, taxation setting, and API integration.

                  Pros

                  • Exceptional customization options
                  • Offers a free forever plan
                  • It has a client-side payment portal
                  • Provides inventory management

                  Cons

                  • A limited number of templates compared with competitors
                  • Only one user is allowed per account
                  • It may be overwhelming for beginners to navigate its interface and find the most useful features

                   

                  8. Invoice Home – Best for Easy Usage

                  Invoice Home Logo

                  Free Trial Yes, Free plan
                  Price From Starting from $5/month
                  Top 3 Features 100+ Beautifully Designed Templates, Mobile Support, Automatic Backup
                  Why We Picked It

                  Invoice Home is a simple invoicing solution. I like its easy interface, simple design, and customizable invoice templates, which allow businesses of all sizes and types to make professional-looking invoices without wasting time. The software securely stores all your invoicing data in the cloud and offers convenient features like emailing invoices as PDFs and adding online payment links. With over 100 templates to choose from and a user-friendly mobile app, Invoice Home provides an efficient way to create and send invoices on the go.

                  Features
                  • 100+ Invoice Templates: You don’t need to sign up before accessing Invoice Home’s collection of professional invoices. Its templates range from basic to advanced offering you the options to choose based on preference.
                  • Mobile Support: Invoice Home supports on-the-go invoicing, which is available on Android and iOS devices.
                  • Automatic Backup: As you create invoices on the app, your data gets synced automatically with the desktop account. Also, Invoice Home prioritizes users’ data security and practices regular data backup.
                    Pricing

                    Invoice Home still reflects its simplicity in its price plans, offering only a paid plan. Invoice Home’s affordable paid plan is another element that distinguishes it from its peers.

                    Plan Free Unlimited Invoicing
                    1 month $0/month $5/month

                      The Invoice Home free plan is good for freelancers, small teams, and solopreneurs who need to invoice less than $1000 monthly. Its paid plan is for larger businesses and companies that need to invoice more than $1000 monthly. Features of the paid plan include unlimited emails, unlimited customers, and unlimited documents.

                      Who's It Best For
                      Invoice Home is best suited for small businesses and freelancers who need a simple, user-friendly invoicing solution.

                      Pros

                      • Simple design
                      • Easy to use
                      • 100+ professional invoice templates
                      • Good for beginners

                      Cons

                      • Limited free plan features
                      • Editing after saving the invoice may be difficult
                      • Lacks more advanced accounting features

                       

                      9. Avaza – Best for Contractors’ Project Collaboration

                      Avaza logo

                      Free Trial Yes, Free plan
                      Price From Starting from $11.95/month
                      Top 3 Features Project-Specific Access, Team Chat, Integrations
                      Why We Picked It

                      Avaza is a dedicated work management software that offers project-specific invoicing functionalities. It provides all the tools needed to achieve a productive team without having to download or pay for multiple software. Similarly to Invoicely and Invoice Naija, Avaza has a forever free plan, but its advanced project features set it apart.

                      Features
                      • Project-Specific Access: Across all plans, Avaza offers different kinds of access, such as timesheets, finance, resource scheduling, chats, and contact, allowing managers to manage team access quickly.
                      • Team Chat: To keep all business information in one platform and support work discussions, Avaza offers businesses a team chat tool. That tool is robust and allows you to categorize chats based on tasks and privatize confidential conversations.
                      • Integrations: Avaza integrates seamlessly with popular business tools to facilitate quick connection and eliminate manual data entry. It integrates with tools such as Zapier, Xero, QuickBooks, Stripe, etc.
                      Pricing

                      Avaza price plans are flexible to support different business needs and sizes. Each of its plans supports unlimited project collaboration and increases the number of user access as the plans progress. See the table below for Avaza’s price list.

                      Plan Free Startup Basic Business
                      1 month $0/month $11.95/month $23.95/month $47.95/month

                        Avaza’s Startup plan is good for small businesses and offers features such as support for 20 active projects, 50 invoices per month, access to two users for timesheet access, and 10 GB storage.

                        Avaza offers a healthy pricing model with features that scale for growing business needs. Its free plan is a good way to explore the platform before making a financial commitment.

                        Who's It Best For
                        Avaza is a good option for businesses hiring different contractors and in need of an invoicing tool to manage their payment and facilitate project collaboration at an affordable rate.

                        Pros

                        • Provides project management tools for contractors
                        • Allows various user roles access
                        • It offers a free forever plan
                        • Supports mobile devices

                        Cons

                        • Adding more users to different access could lead to more expenses
                        • Priority chat and email support is only available to paid users
                        • Its mobile version has some limitations

                         

                        10. Invoicely – Best for Multiple Small Businesses

                        Invoicely Logo

                        Free Trial Yes, Free plan
                        Price From Starting from $/month
                        Top 3 Features Free custom invoicing, Unlimited income and expense tracking, Mobile receipts
                        Why We Picked It

                        I ranked Invoicely as the best invoice software for managing multiple businesses. With Invoicely, you can set up and manage unlimited businesses under a single account, each with its own team members, clients, and branding. This makes it an ideal solution for entrepreneurs running multiple ventures. The platform also supports popular online payment gateways like PayPal, Stripe, Mollie, and Authorize.net. This enables your clients to conveniently pay invoices online using their preferred method.

                        Features
                        • Multiple Currency: Invoicely allows you to manage different currencies from the platform without paying an extra fee. With this feature, businesses can bill or pay vendors in any currency.
                        • Expenses Management: Right on the platform, you can turn expenses into invoices and bills to ensure all expenses are tracked and paid for.
                        • Reporting: I found the reporting capabilities to be detailed, providing valuable information to help you stay on track with your finances. It also provides an extensive activity log on every income and expense activity to backtrace every finance operation within your team and business.
                          Pricing

                          Invoicely’s price plans are in four tiers: free and paid plans.

                          Plan Free Basic Professional Enterprise
                          1 month $0/month $9.99/month $19.99/month $29.99/month
                          1 year $0/month $7.99/month $15.99/month $23.99/month

                            Invoicely’s most popular plan, Professional, is suitable for small businesses with up to 10 team members and many clients. Its features include invoice tracking, payment gateway support, expense and mileage tracking, and more.

                            Invoicely’s pricing approach is similar to Invoice Ninja, supporting startups and small businesses with a feature-rich free plan.

                            Who's It Best For
                            Invoicely is suitable for small businesses with multiple business accounts who need invoicing software to help provide unlimited invoicing and flexible payment gateways like Stripe, PayPal, Mollie, and more.

                            Pros

                            • Supports multiple business management with one account
                            • Offers a free forever plan
                            • Easy to use
                            • Allows businesses to bill in multiple currencies

                            Cons

                            • The free plan only supports a team member and five invoices monthly
                            • Limited estimates on the free plan
                            • May not be able to support businesses with complex invoicing needs

                             

                            The Best Invoicing and Billing Software 2024 – Compared

                            Now that we’ve explored the top 10 invoicing software in-depth let’s see how they stack up against each other:

                            Invoice Software FreshBooks Zoho Invoice Xero Melio HoneyBook Square Invoices Invoice Ninja Invoice Home Avaza Invoicely
                            Best For Instant Invoicing Free Invoicing Small Businesses Payment Simplification Online Invoicing Recurring Billing Customizable Invoice Easy Usage Contractors’ Project Collaboration Multiple Small Businesses
                            Free Trial 30-day free trial Yes, Invoicing is free Yes, 30-day free trial Yes, Start for free Yes, 7-day free trial Yes, 30-day free trial Yes Yes Yes Yes
                            Starting Price $19/month (60% off for first 4 months) $15/org/month billed annually $15/month (70% off for first 6 months) No monthly plan, but transaction fees $16/month billed annually $20/month + discounted processing rates $12/month billed monthly $5/month $11.95/month $7.99/month billed yearly
                            Top Features Recurring Invoice Generator, Payment Reminders, Multiple Invoices Project Management, Integration with Zoho Products, Professional Invoice Templates Automatic Quotes to Invoice, Multiple Invoicing, Bulk Invoice Importation Payment Categorization, Synchronization with Accounting Software, Reminders Tracker Online Document Signing, Online Scheduling, Automation Square Checking, Invoice Tracking, Batch Invoices Custom Taxation Settings, Branded URL, Customize Invoice Designs 100+ Beautifully Designed Templates, Mobile Support, Automatic Backup Project-Specific Access, Team Chat, Integrations Multiple Currency, Expenses Management, Reporting
                            Methodology

                            How We Review and Test Accounting Products

                            To provide our readers with accurate and well-informed recommendations, we test the most popular accounting products on the market to find the best options for you. Our methodology consists of the following criteria:

                            • Features: We examine the features of each accounting software to determine what capabilities are offered- such as creating, editing, and deleting transactions.
                            • Compliance: We evaluate accounting software based on whether it offers local compliance when it comes to payroll, taxes, documentation, and more.
                            • Bank Reconciliation: We test the reconciliation process to ensure transactions match bank statements accurately.
                            • Multi-Currency Support: We verify the accuracy of currency conversions and transactions in multi-currency environments.
                            • User Experience: We get hands-on with each product and act as a new user, testing each platform to gain understanding if the platform is easy to use or not.
                            • Reporting and Documentation: We verify the accuracy of financial reports generated by the software such as balance sheets and income statements.
                            • Integrations: We evaluate the integrations of each piece of software to determine how well it fits in with other key pieces in a business’s software stack, and whether its functionality can be expanded as required.
                            • Audit Trails: We ensure the software maintains comprehensive audit trails for tracking changes made to financial data.

                            Why Do Businesses Need Invoice Software?

                            Invoice software allows businesses to manage their business effectively by providing them with automation and easy-to-use templates, freeing up extra time. According to research, 66% of businesses spend more than five days working on their invoices every month. While time management and error reduction are some of the reasons businesses use invoicing software, there are other benefits. Below are some advantages of invoice software for businesses.

                            • Time-Saving – Paper-based invoicing can quickly eat into your workday, requiring you to create detailed invoices, chase late payments, and track your expenses. With software that offers pre-built invoice templates, automated payment reminders, and the ability to create recurring invoices, you can save time on invoicing every month.
                            • Data Centralization – Invoice software helps manage your finance data in one platform, providing you with access to data such as expenses, revenue, gross profits, paid invoices, pending invoices, and overdue invoices. This way, you’ll be able to understand and analyze your finances.
                            • Professionally-looking Invoice Template – Regardless of your invoice design knowledge level, you can create professional invoices from templates and brand them with your business logo and color.
                            • Error Reduction – The best invoice apps and platforms can reduce your chance of making mistakes. By automating recurring invoices, centralizing and organizing your invoicing data, and taking payments right from your invoices, you can track your finances with ease and identify and fix mistakes.
                            • Quick Payment – Is there anything more frustrating than spending weeks or months chasing a late payment? QuickBooks reports that 73% of businesses are affected due to late payments. The best invoice software helps businesses avoid late payments with its automation, payment reminders, “pay now” options, and more.

                            How to Use Invoicing Software

                            This may be a burning question in your mind: How do I create an invoice for my small business? We've got you covered. We'll use FreshBooks, one of the best accounting tools, as an example, and here's how you can use it to create an invoice:

                            1. Select one of FreshBooks' downloadable invoice templates

                              Once you’re set up with FreshBooks and have chosen a template, add your name, contact details, and business address at the top of the invoice.
                              Select one of FreshBooks' downloadable invoice templates
                            2. Fill out all relevant details

                              Add your customer’s details, including their name and address, and add a line item for each service or product you need to invoice. Also, include a short description of each service or product, the quantity, the rate, and any additional taxes due. Once you’ve added your line items, you should include the total amount your clients owe under your line items, factoring in discounts and taxes in your calculations.
                              Fill out all relevant details
                            3. Include payment information

                              Input your banking information and payment terms, for example, payment being due in 14 days. If you want to take payment via credit card, then include a payment link in your invoice. Also, remember to include your company logo and brand colors to help provide a professional branding edge for your invoices.
                              Include payment information
                            4. Preview

                              Before printing or emailing the invoice to your client, make sure to preview it. This allows you to spot and correct errors that your client may see.
                              Preview

                                    Key Features of Billing and Invoicing Software

                                    Now that we’ve covered the benefits of billing software, let’s review the features that the best online invoice software solutions have in common.

                                    Here are some key features to consider when choosing billing and invoicing software:

                                    1. Online Payment Functionality – Millions of businesses deal with late payments, which can have a serious impact on their cash flow. In fact, 79% of small business owners need to cut their pay due to payments not ending up in their bank accounts on time. Choose an invoice tool that allows your customers and clients to make credit, ACH, and debit card payments straight from their invoices.
                                    2. Automated Payment Reminders – With the best invoice management software, you can automate the majority of the process. You can use the best invoice processing software to set payment reminders both before and after payment is due.
                                    3. Customization Options – The best invoice software, especially if you’re looking for the best small business invoice software, is one that allows for a ton of customization options. An easy-to-customize invoice allows you to add your brand identity, such as color, logo, signature, and more.
                                    4. Recurring Invoicing – Do you work on a retainer or have a set number of deliverables for a client each month? That’s where recurring invoices come in. Look for invoice software that offers the option to automate the creation of recurring invoices for clients with the same monthly deliverables.
                                    5. Reporting Dashboard – The best invoicing solutions offer an accessible dashboard that provides a visual overview of your income and expenses to easily monitor your cash flow and see how your business is performing. You also get a snapshot view of which invoices are still pending payment and which have been paid.

                                    Trends in Invoicing Software for 2024

                                    Technological advancements have influenced various business operations long before the 20th century, but the surge in 2024 has taken a different direction. The rise of AI, the availability of big data, increased business needs as human behaviors evolve, and more factors have greatly impacted invoicing software.

                                    Here are the trending topics influencing invoicing software in 2024:

                                    • Automation: Artificial intelligence has been a major driver of increased automation in the business world, influencing how organizations handle billing. With automation, human error is reduced or eliminated during billing processes. This also increases business efficiency by saving time spent on manual invoicing.
                                    • Mobile Priority: The demand for on-the-go solutions has had an impact on the finance software market, particularly among organizations that employ hybrid or remote work styles. As a result, invoicing software companies prioritize mobile accessibility. With more accessible mobile tools, business owners, freelancers, and team members can manage their invoicing operations regardless of location.
                                    • Cloud Adaptability: Cloud-based invoicing software facilitates flexibility and accessibility, especially for remote teams. As technology advances, more cloud-based invoicing software will evolve to support current business needs, which include quick data accessibility and storage.
                                    • Increased Security Needs with Blockchain Technology: As the use of cloud services grows, so does the necessity for comprehensive security measures. Currently, many e-invoicing solutions secure financial data from cyber threats using authentication mechanisms such as multi-factor/two-factor authentication, e-signature, and industry-standard encryptions. There is still a need for additional security measures, which is why blockchain technology is being used to boost security and transparency. This new technology is expected to increase the performance of e-invoicing operations while ensuring data privacy.
                                    • Integration with Other Business Tools: Businesses are turning towards platforms providing a comprehensive approach to handling their business operations. As a result, invoicing software integrates with business tools such as CRM, payment gateways, HR, and more. This integration enables a smooth and convenient approach to data handling across several channels, eliminating the need for manual processes.

                                    How to Choose the Best Invoicing Software

                                    With the right invoicing software, you can create impressive-looking invoices and automate much of the invoicing process. To find the right software for your business, consider the elements below.

                                    BudgetCustomizationUsabilityAutomationAdditional Features and SupportCustomer Support

                                    Consider how much you can afford and want to spend on invoicing software and compare it with the features available on the software you choose.

                                    While you can use invoicing software to create invoices far faster than you can manually, choose an invoicing software that allows you to customize the invoice with your brand designs.

                                    The more usable your software is, the less stressful it’ll be to run through your invoices every month. You want a clean, easy-to-navigate interface that clearly lays out your invoicing and other financial data, such as a solution like Wave.

                                    Look for software that allows you to automate the bulk of the invoicing process, such as invoice creation, recurring invoices, chasing payments, and recording payments.

                                    Some of the options on our list include additional features that could go a long way in helping you grow your business. Some of the additional features to look out for include accounting, expense tracking, multiple currency, integration, mobile accessibility, and compliance.

                                    Examine the software’s customer service support offers in terms of availability, help channels, and response time. Customer service is extremely important, especially when dealing with technical issues.

                                    FAQs

                                    What is the best software to create invoices?

                                    Are Zoho invoices totally free?

                                    How much is QuickBooks for invoicing?

                                    What is the easiest invoice software?

                                    Is billing software the same as invoicing software?

                                          John Iwuozor
                                          Tech Writer
                                          John Iwuozor
                                          Tech Writer

                                          John Iwuozor is a writer at Techopedia with over three years of experience and expertise covering topics on HR, business software, IT security, and finance for small and medium-sized businesses. His work has been featured on reputable platforms like Forbes Advisor and EsecurityPlanet. Leveraging his background in mathematics and data analysis, he specializes in delivering original and high-quality content with a keen eye for detail and accuracy.