Best Invoicing and Billing Software for Small Businesses of 2024

Why we picked it: FreshBooks got its start as an invoicing product designed for freelancers and creatives. Though it doesn’t offer a free plan like some of its competitors do, its accounting services — including double-entry accounting reports and online bank feeds — set it apart from standalone invoicing products. In addition to accepting online credit card, Stripe and PayPal payments, the software enables ACH transfers for a small fee. Unlike some of its competitors in the accounting software industry, all of its plans include time tracking, mileage tracking and the ability to mark expenses as billable. If you're looking for an all-in-one invoicing and accounting product with a sleek mobile app, especially if you’re a solopreneur or freelancer, FreshBooks is a great choice. Read our complete FreshBooks review.

» MORE: Best invoicing software for freelancers

Why we picked it: You can include terms in a typical invoice, but you never know if your clients take the time to read and understand them. Square Invoices lets you emphasize those terms by supplementing your invoices with contracts that require clients’ e-signatures. That way, you can make sure you and your customers are on the same page when it comes to payment terms, due dates and refund policy. Another highlight of Square Invoices is its clean layout. The simple, user-friendly interface makes it easy to create invoices or contracts, set up recurring invoices or request a deposit upfront. Read our Square Invoices review.

» MORE: Explore Square’s POS solution

Why we picked it: Zoho Invoice is comprehensive yet easy to use. You can keep track of hours, expenses and inventory items on a variety of projects in an app or browser. When work is complete, you can send highly customizable invoices to customers, along with automated email reminders if payments become overdue. Businesses can access all of Zoho Invoice’s features for free, but invoices are capped at 500 per year. In addition to online credit card payments, Zoho Invoice lets you accept cash, check and ACH payments. Zoho Books, the company’s accounting software product, also comes with invoicing features.

Why we picked it: In addition to the payment gateway freedom Invoice Ninja offers, it also enables you to ask customers to pay a deposit upfront, set a minimum payment requirement, and add taxes and a tipping option to invoices. Clients can pay online or use ACH payments to transfer funds. The paid plans come with additional useful features like bulk invoicing, but the free version is so robust that you may never need to upgrade — as long as you don’t exceed 20 clients. You can add additional users to only the most expensive Enterprise plan (for a fee).

Why we picked it: With Hiveage, creating one-time and recurring invoices is straightforward and the dashboard is easy to navigate. The billing software includes time and expense tracking even in the free version. You can accept online payments with any plan, but to accept offline payments through cash, check and bank transfer, you’ll have to subscribe to the most expensive Plus plan. Hiveage can also integrate with accounting, customer relationship management (CRM) and project management software via Zapier.

Why we picked it: Harvest allows members of a project team to track their hours in detail, often within whatever apps project managers are using. Managers can set the budget for a project and track expenses and hours to make sure teams are working efficiently. When it comes to invoicing, Harvest’s estimate, invoice and payment collection tools are easy to navigate, and it offers helpful features like automated email reminders to customers with late payments. If you’re concerned about credit card processing fees adding up, you can switch off the ability to pay with a credit card through Stripe. Instead, your invoices will give clients the option to pay only via ACH transfer.

» MORE: Best business expense trackers

Why we picked it: Invoice Home offers a generous library of free invoice templates, and for a reasonable monthly fee, you can send an unlimited number of invoices to an unlimited number of customers. If all you need from your invoicing software is the ability to quickly spin up a large volume of invoices and make it easy for your customers to pay them online, then Invoice Home is a strong solution. You can use the billing software for free if you invoice less than $1,000 per month.

Additional invoicing and billing software to consider

In our review of fifteen invoicing software products, NerdWallet determined a few products that don’t make our “best” list are still strong contenders that are worth consideration. Consider one of the following solutions if those on our list above don’t suit your small-business invoicing needs.

Xero

Another solid choice for all-in-one invoicing and accounting software.

Why it’s worth considering: Xero lets you send automatic payment reminders to clients, create customizable invoice templates and accept payments via ACH transfer, Google Pay, Apple Pay or card. To access time tracking and mileage tracking or claim expenses, you’ll have to subscribe to the Established plan. On the accounting software front, Xero stands out as a scalable solution that supports an unlimited number of users in all plans. This makes it a great fit for small-business owners who need to give multiple employees access to the software. Read our full Xero Accounting review.

Wave Invoicing

Another good option for free invoicing software.

Why it’s worth considering: Wave is a simple accounting and invoicing solution for freelancers, solopreneurs and microbusinesses that mostly receive payments via invoice. However, there is no easy way to mark expenses as billable so that you can add them to invoices later. While you can create a reimbursable expense account as a workaround, it isn’t as convenient as the billable expense features other accounting products offer. Read our full Wave review.

» MORE: Best free invoicing software

Hopscotch

Good for early access to invoice funds.

Why it’s worth considering: Hopscotch’s Flow feature is comparable to invoicing financing, in that it lets you access invoice funds before your client pays them. Since this service comes with a fee, it’s not something you’ll want to use for every invoice. However, if you trust that your customers will promptly pay their outstanding invoices, it can be a helpful short-term solution to cash flow issues. The software also lets you connect your bank account, send payment reminders to clients and pass on credit card fees to clients.

How we determined the best invoicing and billing software

To determine the best invoicing and billing software for small businesses, NerdWallet considered the following features:

Invoicing capabilities. The best invoicing and billing software should offer invoice customization options, the ability to send automatic payment reminders and accept online payments, a dashboard to easily track invoice and billing status plus some reporting capabilities. Standout products also make it easy to convert estimates to invoices and offer most or all features within a mobile app as well.

Affordability. Most of the plans for the software included on our list start below $20 per month (and many offer free plans).

Integrations. Ideally, standalone invoicing and billing software directly integrates with popular accounting software, like QuickBooks Online and Xero. Some of the higher-rated products on our list also offer direct integrations with e-commerce, CRM, inventory and other software applications.

Additional consideration was given to customer support availability, pricing transparency and whether a free trial is offered for paid products.

NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

How to choose invoicing or billing software

Consider the following factors to help determine what invoicing software is right for your small business.

Scalability

Make sure to think about the future, not just the present. Because most invoicing software determines pricing based on how many clients you have, business growth could mean rising costs. Look for software that will support the business you’re planning to be running in a year without requiring you to leap to a much higher pricing tier.

Ease of use

Most invoicing software makers offer free trials to potential customers. Take advantage of these to make sure you understand how to use the features you need. Choose payment gateways that accommodate your clients, especially if you have clients abroad and need to support multiple currencies. Take time to test the software from the client's end, too.

Software integrations

If you rely on other software programs already, look for an invoicing option that integrates with them. Many of the options on this list integrate with other software via Zapier, intermediary software that users have to set up themselves. Make sure to test those integrations before you commit to one program.

The right invoicing software might allow you to consolidate some of your tasks into one place. If you use time tracking software, for instance, consider switching to an invoicing software with native, or built-in, integrations that can meet those needs, too.

Cost

The “freemium” model of most invoicing software programs can make it hard to project costs. Growth in your client base or changes to your staffing levels might bounce you into a different price tier. Plus, some important features might actually be add-ons with additional fees. If budget is top of mind, though, there are plenty of free invoicing software options available.

Should your small business use online invoicing?

Online invoicing software, as opposed to paper invoicing, has become the norm for many small businesses. Consider online invoicing if you’re interested in the following benefits:

• Immediate customer receipt. Customers receive online invoices instantly, cutting out the delivery time of nondigital methods.

• Faster payments. Adding a link in an invoice to pay it online is not only convenient for customers but also good for your business’s cash flow. And if you’ve connected your bank account to the invoicing software, the funds should get directly transferred. 

• Streamlined accounting records. Invoicing software options usually integrate with accounting programs and consolidate record-keeping in one location. For example, lots of accounting software products let you view unpaid invoices right from your dashboard. 

• Saved time. You’ll spend less time tracking which invoices are paid, prepping new ones by hand and mailing them to customers.

While online invoicing is preferable to paper invoicing in most situations, there are a few potential pitfalls to be aware of:

• Processing fees. Offering your customers the option to pay online is convenient, but it often comes with a payment processing fee, unlike receiving payment by check. 

• Spam filters can hide invoices. Sending invoices by email means a customer’s inbox could tag them as spam, so you might still have to call a few customers who are unaware they have an invoice waiting.

• Email can be hacked. Privacy might be compromised if a customer’s email is hacked, which is much less likely if an invoice is mailed.

» MORE: 4 reasons to switch to online invoicing

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