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5 Best Invoicing And Billing Software

Jodie Price

By Jodie Price | Updated August 21, 2025

Managing your business finances becomes simpler with the right invoicing and billing software. These tools let you send invoices, track payments, and automate tasks like reminders and recurring billing. Many options also integrate with accounting platforms, helping you keep everything organized in one place, whether you need basic features or more advanced tools for tracking projects and expenses.

  • Square Invoices

    Square Invoices is recognized as the ‘Best Overall Invoicing Software for Small Businesses,’ offering a flexible monthly cost ranging from $0 to $20. It supports multiple payment types, including online, ACH, and in-person transactions. Users can send unlimited, customizable invoices, making it a versatile choice for growing businesses.

    Editor’s Take

    You can create detailed invoices with item descriptions, taxes, discounts, and quantities, including recurring invoices to automate billing for subscriptions or repeat clients. Automatic payment reminders help reduce late payments, while built-in tracking shows who has paid, who’s overdue, and what’s outstanding.

    As a cloud-based platform, Square Invoices lets you manage billing and payments from any device. It offers time-saving templates and integrates with Square’s payment system, allowing customers to pay online via card quickly and easily.

    While it’s a strong choice for small businesses and service providers, Square Invoices may be limiting for users who need advanced reporting tools or extensive branding customization.

    Pros & Cons

    Pros

    • Simple, intuitive interface; easy to set up and use
    • Supports one-time and recurring invoicing for repeat clients
    • Automatic payment reminders and tracking included
    • Mobile access for invoicing on the go
    • Online payment collection lets clients pay by card
    • Templates available for faster invoice creation

    Cons

    • Fewer customization options for invoices and branding
    • Advanced accounting or reporting features are limited
    • Surcharge or transaction fees for payment processing
    • Not ideal if you need built-in inventory management

  • FreshBooks

    FreshBooks is considered the ‘Most User-Friendly Invoicing Software,’ with a monthly cost ranging from $21 to $65. It supports online, ACH, and PayPal payments, giving clients multiple ways to pay. The platform also offers unlimited, customizable invoices to suit a variety of business needs.

    Editor’s Take

    FreshBooks stands out for its user-friendly interface and smooth setup process. You can easily create custom invoices, track expenses, and log billable hours with just a few clicks. All data is stored in the cloud, so you can access your financial information from anywhere, using your desktop or the FreshBooks mobile app.

    Time tracking features are built in, allowing you to link tracked hours to invoices for accurate billing. Expense management is straightforward, letting you snap photos of receipts and categorize business costs quickly. The software also offers financial reporting tools so you can monitor income, expenses, and profit.

    Payment integration allows your clients to pay online using credit cards or other methods. Pricing starts competitively, with options for unlimited billing as your business grows. FreshBooks also supports multiple team members, making it suitable for both solo freelancers and growing teams.

    Pros & Cons

    Pros:

    • Easy-to-use interface with clear navigation
    • Mobile app for invoicing, expense tracking, and time tracking
    • Strong cloud-based access for remote work
    • Customizable invoices and automated payment reminders
    • Simple expense management, including receipt capture
    • Supports online payments for faster deposits
    • Good integration with other tools and services

    Cons:

    • Limited advanced accounting features compared to some competitors
    • Pricing may increase as your client list or team size grows
    • Some specialized reports are only available on higher plans
    • Not ideal for businesses needing full payroll processing
    • Customizations are less flexible than in some advanced platforms

  • Zoho Invoice

    Zoho Invoice earns the title of ‘Best Value,’ offering its invoicing software completely free of charge. It supports multiple payment types, including online, ACH, and Square, making transactions easy for both businesses and clients. The platform also provides customizable invoices to match your branding and business needs.

    Editor’s Take

    Zoho Invoice is a free tool packed with features ideal for small businesses and freelancers. It lets you customize invoices with your branding, track unpaid bills, and automate payment reminders for faster collections. E-invoicing support helps ensure you get paid quickly and efficiently.

    You can set up recurring payments for ongoing contracts, and the software integrates seamlessly with Zoho Books for broader accounting needs. Its user-friendly dashboard provides insights into invoice aging, top customers, and popular products. The platform is easy to use and works well with other business tools, making it a strong choice for those who want powerful features without a steep learning curve.

    Pros & Cons

    Pros

    • Free forever plan with no hidden charges
    • Customizable invoice templates
    • Simple interface for quick invoice creation
    • E-invoicing features built-in
    • Automation of recurring payments and reminders
    • Integration with Zoho Books and other Zoho apps
    • Detailed sales and customer reports
    • Cloud-based and mobile app available

    Cons

    • No full accounting suite (needs Zoho Books for complete features)
    • Limited features for larger, complex businesses
    • Some advanced integrations may require technical setup
    • International tax settings and currency conversion can be tricky for some users

  • Xero

    Xero is considered ‘Best for Growing Businesses,’ offering customizable invoicing tools with a monthly cost ranging from $15 to $80. It supports online and ACH payments, giving users flexible ways to get paid. The platform’s scalable features make it ideal for businesses expanding their client base and invoicing needs.

    Editor’s Take

    Xero offers an intuitive invoicing system that lets you create and send professional quotes or invoices from your phone or computer. Built-in templates save time and allow you to add your branding, while recurring invoices can be set up for repeat clients with automated delivery.

    You can easily track payments, monitor overdue invoices, and link them to bank transactions for quicker reconciliation. This makes Xero a convenient option for freelancers and small businesses that need flexibility and mobility in their billing process.

    However, Xero’s entry-level plan limits users to 20 invoices per month, which may not suit fast-growing businesses with higher invoicing needs.

    Pros & Cons

    Pros

    • Clean interface and easy navigation
    • Mobile app for invoicing on the go
    • Customizable invoice templates
    • Automated payment reminders and invoice scheduling
    • Integrates with quotes and estimates
    • Unlimited users on any paid plan
    • Supports multi-currency billing

    Cons

    • Cheapest plan limits to 20 invoices per month
    • Some users find the new invoicing tools less intuitive
    • Advanced features may require higher-priced plans
    • No live phone support
    • Missing certain invoicing features found in niche tools

  • Intuit QuickBooks Online

    Intuit QuickBooks Online is rated ‘Best for Brick-and-Mortar Businesses,’ offering customizable and unlimited invoicing to suit in-person operations. It supports multiple payment types, including online, ACH, and in-person transactions. Monthly costs range from $35 to $235, making it a flexible option for businesses with varying needs.

    Editor’s Take

    QuickBooks Online stands out for its balance between invoicing tools and core accounting features. You can create and send professional, customizable invoices in minutes. There are tools for tracking invoice status, sending automated reminders, and accepting different payment methods through integrated payment gateways.

    The software includes robust payment processing, letting customers pay directly from their invoices. Payments are recorded instantly, aiding real-time cash flow management. Its dashboard displays recent transactions and outstanding balances clearly.

    You get access to advanced financial reporting and bank reconciliation. This makes it easy to monitor your revenue, track expenses, and better understand your business’s financial health. If you want both invoicing and full accounting capabilities, QuickBooks Online is a dependable choice.

    Pros & Cons

    Pros:

    • Supports customizable invoices with logos and itemized details
    • Includes integrated payment gateways for credit cards and ACH payments
    • Offers automatic invoice reminders and recurring billing
    • Provides strong accounting features like bank reconciliation and financial reporting
    • Works entirely online—accessible from computer or mobile devices
    • Syncs payments for better cash flow management

    Cons:

    • Monthly subscription required, with recent price increases
    • User limit (up to 25) for higher-tier plans
    • Learning curve for new users unfamiliar with accounting software
    • Some features, like project management, cost extra
    • Occasional speed issues during peak times

Frequently Asked Questions

What features should I look for when choosing invoicing software for a small business?

Look for invoicing software that helps with project management, recurring billing, and easy tracking of unpaid invoices. Integration with accounting, payroll, and inventory management is important.

You may also want options for ACH payments, customizable templates, and clear reports. Mobile access and automatic reminders can help you get paid faster.

Which invoicing software offers the best value for freelancers?

Freelancers may benefit from software with low pricing, simple invoicing, and expense tracking. Good options should include the ability to create and send professional invoices quickly, track time, and accept various payment methods.

Customizable branding, mobile features, and no long-term contracts can provide added value. Some programs, like Tipalti, cater more to larger teams or businesses with complex needs.

How does invoicing software integrate with other financial systems like accounting or payroll?

Many invoicing tools sync with accounting software and payroll to reduce manual entry and errors. Integration lets you connect your invoices directly with popular accounting platforms, payment gateways, and banks.

Look for software that offers smooth connections to programs like QuickBooks, Xero, or payroll management tools. This keeps your records up-to-date and speeds up reconciliations.

What are the security considerations when selecting an invoicing and billing software?

Choose software that protects your data with encryption and secure servers. Make sure the provider meets recognized industry standards and uses secure methods for ACH payments.

Check for features like two-factor authentication and regular security updates. Protection against unauthorized access is key, especially if you handle sensitive financial information.

Can invoicing software be customized to fit the needs of contractors and their billing cycles?

Many invoicing solutions allow custom invoice templates and flexible billing schedules. You can often set unique payment terms, milestones, or progress billing to match your projects.

Look for software that adjusts to hourly work, flat-rate projects, or mixed billing. Make sure you can add details like project names, timesheets, or cost breakdowns to each invoice.