The best invoicing software has proven to be a foolproof method for SMBs to track client revenue flow. In fact, over 64% of SMBs already use this software to streamline their customer billing process.
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Last Updated: Sep 24, 2023
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FreshBooks is an alternative to traditional accounting and is built for freelancers, micro-businesses, and small businesses.
Accounting is an integral part of any business. But it’s not everyone’s forte. While searching for software that was easy to use and could perform essential accounting functions, I discovered FreshBooks.
FreshBooks first arrived on the cloud accounting scene as an invoice generator. As the software expanded, it incorporated double-entry accounting. In addition, you can track time and automate invoice reminders for your clients. Managing your customers, expenses, and projects from one place is another valuable feature, including drawing up proposals and financial reports.
Quickbooks is powerful accounting software with 20 years in the game. Having been in the business for such a long time, they know what their customers need and have evolved over time to meet those needs.
Quickbooks offers 3 different packages in a tiered format. With tiered pricing depending on the unique needs of your business, Quickbooks offers a multitude of features and excellent customer support.
Invoice Simple offers a simple way to invoice customers, from your phone or laptop. For contractors, freelancers, owner-operators, creatives, and other small business owners.
Square Invoices is a free, all-in-one invoicing software that helps businesses request, track and manage their invoices, estimates and payments from one place. The easy-to-use software helps businesses get paid faster by letting you request, accept and record any type of payment method.
Zoho Books is a one-stop platform for managing accounting tasks and organizing transactions. It’s a single secure location to keep up with your company’s bills and invoices, reconcile bank statements, control spending, oversee projects, and eliminate sales tax compliance worries.
Invoice Ninja is a free invoice generator for freelancers and small businesses. Invoice online, accept payments, track expenses & time billable-tasks.
Xero is a New Zealand–based technology company that provides cloud-based accounting software for small and medium-sized businesses. Xero online accounting software connects you to your bank, accountant, bookkeeper, and other business apps.
PayPal is an online payment platform that secures the safety of online transactions and the secure transfer of funds. By connecting your bank account, credit card, or debit card to your PayPal account, you gain the ability to utilize PayPal for online shopping at participating retailers.
Invoice Expert is the perfect software package to meet the billing, inventory and invoicing needs of your business. Whether you specialize in professional services, running a retail store, invoicing customers for repair work, or running an Internet business, Invoice Expert can simplify your invoicing and billing needs saving you precious time and money.
BillingPlatform provides the power needed to automate enterprise-grade revenue lifecycle processes. From subscriptions to sophisticated usage-based pricing models and everything in between, we meet the challenge of modern monetization.
Scoro is a software-as-a-service solution for professional and creative services. The business management software combines project management with time and team management, sales, billing, and professional services automation.
This cloud-based financial management software was developed in 2006 by Rene Lacerte in the United States. Bill.com’s initial target was to help small businesses automate their accounts payable and receivable.
Plus, this figure will increase in the coming years. You can join the larger percentage of owners reaping the benefits of using invoicing software to handle their business billing needs.
Using the best invoicing software may not be free, but it covers your basic business needs. Invoice creation, sending recurring invoices, account management, payment portals, and account balancing are some of the basic features of invoicing software.
There are lots of invoicing software, but your business type and what you want would influence your choice. Some popular options include FreshBooks and Invoice Simple.
Knowledge of the best invoicing software helps you navigate finances in the business world. Keep reading for more information and pick out which applications are free or to be paid for.
There is often a hassle in trying to use paper invoices. In the long run, issues arise in balancing your accounts. This is where invoicing software comes in.
It is basically a tool that processes the billing for your services and products. It is an automated process. The cost of the service rendered or product purchased is generated, and the invoice is sent to your customers.
This section will cover several invoicing software, prices, pros and cons, and how to use them.
FreshBooks was voted the best overall invoicing software on Investopedia. Its templates are solid, and the payment processing can be done without hassles. The invoicing option can be customized and convenient with options for tracking your inventory.
Besides inventory tracking and invoice generation, there are also a host of other accounting services. It is ideal for a business irrespective of size, and they have excellent customer service.
The services, including invoicing, are better on a desktop. It can also be accessed with a mobile device, but some desktop features are unavailable on mobile. The app also comes in handy to either review or forward invoices.
Other features of FreshBooks software are project management, expense tracking, time tracking, payments, and reporting. Third-party app integration is also allowed on the platform. More than 100 apps can be easily integrated into the software.
FreshBooks give room for you to actually decide if you would want to stick with them or not. They do this by offering a 30-day trial. If the outcome is ideal for your business, you can go ahead and choose a paid plan.
The paid plans include
There are several pros to using FreshBooks invoicing software.
As there are many advantages to using FreshBooks, there are also several disadvantages. This may be in the form of limitations.
If you are looking for Invoicing software that collects and organizes data and reports meticulously, you may lean towards QuickBooks. It caters to both individuals and small, medium or large businesses.
With QuickBooks, you can either customize or automate your invoices. It keeps records of your work and has bookkeeping features and accounting tools.
The software allows you to send duplicates of your invoices to more than one customer at a time. You can also include billable hours.
It is no secret that QuickBooks is the best Invoicing software that gives you insight into your financial metrics.
You have the opportunity to get information faster as the reports are located right on the QuickBooks dashboard. It boasts greater efficiency and helps you make informed decisions.
QuickBooks has a 30-day free trial period, after which you must subscribe to a plan to continue usage. The perks you enjoy when using this platform depend on your subscription plan.
The more you pay for a plan, the more detailed your reports get. There are four plans you can subscribe to.
Using a desktop device to create invoices, manage, track and do so much more is handier with Invoice Simple. Unlike other invoicing software, this platform offers desktop and mobile apps the same functionality.
Besides creating, managing, and tracking invoices, you would find it easy to accept card payments using the app. The payments cover both credit and debit cards, and you can also process payments with PayPal.
Invoice Simple is often referred to as the best Invoicing software because of the ease of users’ experience. There is also excellent customer service, pocket-friendly subscription fees, and it’s efficiency.
With Invoice Simple, you can send invoices comfortably with your mobile phone. It is accessible to both Android and iOS users alike. Despite the easy-to-use nature of the software, it might only meet some of your accounting needs.
There is a limit to the accounting and reporting functions it may do. On the brighter side, you don’t need to break the bank to use it.
There is a free trial for this invoicing software. The trial lets you send one invoice for free, and afterward, you would have to subscribe to use it consistently.
Besides the plans mentioned above, there is also an option for annual fees. This helps to curtail excess spending for the monthly payment.
Square is one of the best invoicing software options out there and the go-to service for many businesses. The company claims that over 75% of its invoices get responses daily.
The invoicing app is a well-known small business-friendly platform. Plus, owners can use it to regulate both online purchases and POS (Point Of Sale) purchases.
As a business owner using Square, you can customize your invoices before sending them to your customers. You can also create a schedule for recurring bills and track your invoice status.
There is a one-click payment option, making it easier for customers to pay their bills conveniently from their mobile devices.
Like other invoicing software, there is a free version for Square. You get charged when your customers pay their invoices. The charge on the invoices is around 2.9%, and a $0.30 fee.
This platform is listed as the best Invoicing software for business owners who want automated services. It is popular for the automation it gives, helping you chart your payments and services at an affordable rate.
You get to customize your invoice and even payment options when using Zoho.
There are several necessary services that Zoho can add to your business. It ranges from aid in marketing, sales, and even in finances.
The automation can remind customers of late fees, inform them about discounts and strengthen client relationships.
With Zoho, you can create automatic payments and recurring invoices. You can also use it for email alerts, field updates, and in-app notifications.
Using the Zoho invoice software, you can send up to a thousand invoices free of charge. This is restricted to just invoices. There are payments made to use other services.
This platform can be referred to as the best Invoicing software on the basis of cost. It is absolutely free to use this software. This platform is ideal for business owners and freelancers. It has over 200,000 businesses using it.
Invoice Ninja allows auto-billing, project management, and recurring invoices. Invoice Ninja is probably the best Invoicing software for business owners that have customers across the globe.
Several payment pathways and support exist for over 50 currencies and at least 20 languages.
As was previously mentioned, Invoice Ninja is entirely free. It offers unlimited invoices and can generate quotations for up to 20 clients.
Xero, albeit primarily an account in software, can also double as invoicing software. It was voted the best invoicing software for growing businesses.
With Xero, you can customize your invoices, accept bank transfers in the invoice and accept debit and credit cards. Xero invoicing software also allows you the flexibility of customizing your online invoices.
You can also set reminders for your clients and accept payments via the app. The platform collaborates with other payment portals like GoCardless and Stripe to process payments. They charge a certain percentage for payment processing.
Xero is not the cheapest invoicing software. However, for its price, it offers fantastic features, especially for growing businesses.
PayPal Invoicing is one of the top-rated and best invoicing software. It is rated four stars on the TechRadar platform. When it comes to Invoicing platforms that boast of simplicity, you must mention PayPal.
It has a simple way of sending invoices and can be done with multiple currencies. The platform can also convert your payments from one currency to another. You can also conduct financial transactions from PayPal to your bank account.
PayPal is suitable for smaller groups. It is not recommended for large companies or businesses with a large client base.
The ease of using PayPal has already been previously established. To use this platform, you don’t need to download software, nor do you need to keep updating the software. All that is required is to log into the website and conduct your business.
For transparency’s sake, the records of your transactions are made available on the website.
There are no monthly fees required when using the PayPal platform. However, when your clients pay for your services through the platform, you pay for the Invoicing software.
Its scope is not limited to invoice sending, as it can be used for inventory management and billing duties.
There are two versions of the Invoice Expert app. The lite version and the advanced version. The fees paid are one-time. There are no hidden fees, support charges or annual or monthly fees.
If you are unsatisfied with their service, there is a 100% money-back guarantee available for 30 days.
The app can be easily upgraded at any time. There is often no need to reinstall the app after an upgrade.
This is a cloud-based invoicing and billing software. It offers a wide range of services from invoice creation, bill management, account and revenue management and much more.
BillingPlatform can be customized to suit your business. It can be used on both desktops and mobiles.
With the account creation option, you can control accounts and their hierarchy. The platform’s revenue management can be customized to suit your needs.
There is no specific price list for this invoicing platform. You can contact the platform and request a demo.
Scoro is an excellent invoicing software for invoice compilation, payment reminders, and quick payments.
With Scoro, you can customize either sales, prepayment or credit invoices and quotes. Your monthly billing gets reduced drastically, and you can set up recurring payments.
Scoro lets you have a birds-eye view of your clients’ or your projects’ profitability. You also get paid quickly due to the automated reminders you can set up on the app.
Besides the above, you do not need to fidget when looking for your business information or statistics.
On the real time dashboard, you can access all the sent invoices and get an estimate of your monthly revenue.
Several tools are available on the Scoro platform to help you manage and organize your business. You don’t need to open several tabs when using Scoro, and this software can save you time.
Scoro has a free 14-day trial period, and you can request a demo.
The paid version is available for $26 monthly for each user.
This software is made for easy simplification of bills and invoices. It helps you review and approve bills from either a mobile or desktop device. Payments can also be sent from either a domestic or international level, and invoices, receipts, and checks can be stored.
With Bill.com, account management is made easier. Payments are much faster and easier and can be conducted through PayPal, Credit card, or ACH.
You can send automated invoices and reminders, manage your contacts, and sync your accounting software to Bill.com. Account syncing makes the bank account reconciliation and balancing of the books easier.
An additional feature, which is uncommon, is its customizable account charts.
There are four subscription plans that Bill.com offers. They are divided into payable or receivable features.
The payable features consist of unlimited cloud storage, a centralized inbox, and an option for six users. Consolidated vendor details, standard approval policies, ACH checks, and wire transfers are all paid subscription features.
The receivables are auto charge and pay, ACH payments, credit card payments, recurring invoices, and customized invoice and email payments. There are free trial periods after which you would be required to pay.
As a freelancer or small or large business owner, there is no doubt that you would need Invoicing software for efficiency. You carry out your activities more efficiently than you would have.
If you need more convincing, the following benefits will give you reasons to give invoicing software a chance.
With invoicing software, your workflow rate gets smoother. Your client’s details can be gotten quickly and in a smoother manner. Relevant information is found with the click of a finger as it is saved in the cloud.
It can take a few minutes to quickly fill in the products and amount of hours and send. Recurring payments can also be quickly gotten for long-term clients. An efficient system improves your work-rate flow and leaves you less stressed.
Invoicing software makes your business look professional. Some invoicing apps allow you to add your business logo to the invoices. PDF copies of invoices can be printed or sent as an email to your customers.
It still increases your level of professionalism. Your invoice should capture the necessary details about your business, like the product in question and the price.
As a business owner, you desire speed, especially when dealing with several clients at a time. With invoicing software, you can send multiple invoices to several clients simultaneously. Their records are also preserved for easy access when the need arises.
When dealing with manual invoices and the need to audit arises, you may have a hard time pooling records. The software helps in the generation of the necessary reports and tax processing.
The accuracy of your invoices improves with the use of Invoicing software. Your attention is geared toward invoice content.
Other extras like dates, layouts, fonts and the like are automatically taken care of. The margin of error when using such platforms is small.
There is no doubt that invoicing software improves the flow of money in your business. When you have new clients, the apps help you create invoices to be sent out quickly. The faster invoices are sent to clients, the earlier you receive your payments.
Invoicing software has unique features. Some have a feature that allows you to pay directly through the platform. This also improves the flow of cash in the organization.
It can be pretty embarrassing to keep reminding your clients about payments. This is another role for proper organization. You can send reminders or generate automatic payments.
In instances where your computer system packs up, you are not worried about losing your invoices. Online invoices are stored in the cloud, which reduces the chances of loss. Better security also removes the fear of leaking invoices or clients’ sensitive details.
Invoicing software allows you to entertain clients worldwide without language or currency limitations.
An Australian customer can order merch from you in South Korea, and there would be no hitches. This makes billing easier for you as a business person and your client, the recipient of your service.
For some software, you can use both mobile or desktops. This literally makes the invoicing platform accessible at any given time from your phone, tablet or desktop.
The ease such billing platforms give can help foster tighter client relations. There are several customizable settings on some of the platforms that give opportunities to send messages to your client.
Also, the already established professionalism you display, the accurate bills, and much more can endear you to them.
Everyone likes good things. The outstanding customer relations that the invoicing app helps you achieve can boost your business. You get referred to more people, and in the long run, there is business growth.
You’re undoubtedly spending a portion of your business resources on getting the best invoicing software.
So it’s only proper to consider some factors before making up your mind on any of the options we’ve listed. Here are some aspects to deliberate on before starting that subscription.
Finances play a huge role in our life choices. It is not strange that it would also play a role in choosing adequate Invoicing software for your business. For a start, you may select the free versions of anyone that suits you.
When your business and client base expands, it is only natural to go for something bigger. Your pockets would dictate the plan to subscribe to.
Your finances have been mentioned to play a role in choosing adequate invoicing software. Finances, however, should not be a strong determinant. You can anticipate how large your business will expand in a year.
The anticipated expansion should be factored in when choosing a plan. Picture the business size you should have, for example, at the end of six months and pick a suitable plan.
This would help you avoid running around in circles and keep jumping from one price per plan to another.
Clients should be factored in when weighing options regarding invoice software. One of the features to look out for is payment gateways and multiple currencies, especially for clients abroad.
Others are recurring invoices, payment reminders, invoice tracking and much more.
There might be some other apps you work with daily and need to integrate with the new software. Some Invoicing software has an integration option. Ensure to test it first before permanently embracing the new software.
If you have some people working under you that you need to add, it will influence your decision. Your staff may need access to the software, so you must find the software that allows multiple users. You can assign different access levels.
The customer service provided by invoicing software can influence your choice. The hours they work and the reviews on their site and other platforms should also keep you informed.
With the right software, you should be able to bill your clients and customers appropriately. Keeping track of your finances is another plus of having the right software.
The best invoicing software for your business may not be the best for others. The best way forward is studying your business and subjectively choosing the best invoicing software.
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Like every other piece of information stored online, there are risks. Despite these risks, several platforms go the extra mile to protect their clients' information. There are key features to look out for before using Invoicing software.
Several invoicing software options have been mentioned in the article above. There are free ones that are great for small businesses. Examples include Zoho, Invoice ninja, Harvest, Hiveage, and PayPal invoicing. With as little as $20, you can access FreshBooks, QuickBooks, Square, Invoice Expert, Xero, Wave, and more.
Invoicing and accounting software are often used interchangeably, but they are actually different. The scope of Invoicing software covers invoice generation, bookkeeping, and a bit of accounting. The accounting features include tracking expenses, etc. Accounting software, on the other hand, covers financial reports, bank reconciliation and more.
Most of the invoicing software listed in the above guide is easy to use. But as a newbie to this type of software, you may find FreshBooks easiest to use. You do not need to have much experience to use the app. It is one of the simplest invoicing software options for creating and sending invoices.
FreshBooks is the best accounting software that can also work for invoicing. The great automation it has can facilitate early payments through late payment reminders. The amazing accounting features you can get from the platform include expense tracking and mileage tracking. You get to also create proposals on the platform.
ACH stands for American Clearing House. And an ACH payment is facilitated when your client pays from their bank to your bank. These payments are often longer to process but are cheaper than credit card payments.
If you want your clients to pay your invoices faster, there are some steps to take. First and foremost, you should use an online invoicing option by using our guide above. You should also choose an excellent template for your invoices and offer discounts to clients who pay before the due date.