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Best Online Invoicing Software of December 2023

Invoicing software can help your business do more than create and send bills.
Last updated on August 11, 2023
Edited byChristine Aebischer
Fact checked and reviewed

⏰ Estimated read time: 5 minutes

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.

Online invoicing software helps small-business owners and freelancers track the goods and services they provide and how much customers owe. The best options let you manage billing end to end — from creating estimates to tracking hours to collecting payments. Our top billing software picks offer a combination of these features, plus mobile apps and more.
Many times, accounting software has built-in invoicing features that may offer everything you need. If you dislike that software’s invoicing templates or you’d like to use an outside payment gateway, separate invoicing software could be worth it. An invoicing-only product can also be a less expensive, simpler solution if you need only invoicing and expense tracking.
Here are the best online invoicing software products and how to choose the right one for your business.

Best Online Invoicing Software

Product
Promotion
Learn more

FreshBooks

Learn more

on FreshBooks' secure website

4.5/5

Best for All-in-one invoicing and accounting software

$17/month

Additional pricing tiers (per month): $30, $55, custom.

30-day free trial

or monthly discount (terms vary).

Learn more

on FreshBooks' secure website

QuickBooks Online

Learn more

on QuickBooks Online's secure website

5.0/5

Best for All-in-one invoicing and accounting software

$30/month

Additional pricing tiers (per month): $60, $90, $200.

50% off

for first three months or free 30-day trial.

Learn more

on QuickBooks Online's secure website

Xero

Learn more

on Xero's secure website

5.0/5

Best for All-in-one invoicing and accounting software

$15/month

Additional pricing tiers (per month): $42, $78.

30-day free trial

or monthly discount (terms vary).

Learn more

on Xero's secure website

Square Invoices

Learn more

on Square Invoices' secure website

Best for Sending digital contracts

$0

Additional pricing tiers (per month): $20.

30-day free trial

of the Plus plan.

Learn more

on Square Invoices' secure website

Zoho Invoice

Learn more

on Zoho Invoice's secure website

Best for Free invoicing software

$0

Free.

N/A

Learn more

on Zoho Invoice's secure website

Wave Invoicing

Best for Free invoicing software

$0

Free.

N/A

Invoice Ninja

Best for Payment flexibility

$0

Additional pricing tiers (per month): $10, $14.

N/A

Hiveage

Best for Simple billing software

$0

Additional pricing tiers (per month): $19, $29, $49.

14-day free trial

of the Pro plan.

Harvest

Best for Project invoicing

$0

Additional pricing tiers (per month): $12 per user.

30-day free trial

of the Harvest Pro plan.

Our picks for

All-in-one invoicing and accounting software

FreshBooks

Learn more

on FreshBooks' secure website

Starting at

$17/month

Additional pricing tiers (per month): $30, $55, custom.

Promotion

30-day free trial

or monthly discount (terms vary).

QuickBooks Online

Learn more

on QuickBooks Online's secure website

Starting at

$30/month

Additional pricing tiers (per month): $60, $90, $200.

Promotion

50% off

for first three months or free 30-day trial.

Learn more

on Xero's secure website

Starting at

$15/month

Additional pricing tiers (per month): $42, $78.

Promotion

30-day free trial

or monthly discount (terms vary).

Our pick for

Sending digital contracts

Square Invoices

Learn more

on Square Invoices' secure website

Starting at

$0

Additional pricing tiers (per month): $20.

Promotion

30-day free trial

of the Plus plan.

Our picks for

Free invoicing software

Zoho Invoice

Learn more

on Zoho Invoice's secure website

Starting at

$0

Free.

Promotion

N/A

Wave Invoicing

Starting at

$0

Free.

Promotion

N/A

Our pick for

Payment flexibility

Invoice Ninja

Starting at

$0

Additional pricing tiers (per month): $10, $14.

Promotion

N/A

Our pick for

Simple billing software

Hiveage

Starting at

$0

Additional pricing tiers (per month): $19, $29, $49.

Promotion

14-day free trial

of the Pro plan.

Our pick for

Project invoicing

Harvest

Starting at

$0

Additional pricing tiers (per month): $12 per user.

Promotion

30-day free trial

of the Harvest Pro plan.

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What is invoicing software?

Invoicing software makes it easier to bill clients for products or services and accept payments. It allows you to create estimates and convert them into invoices, keeps track of outstanding invoices and may send payment reminders to clients as due dates approach or pass. Some options also let you set up recurring invoices for clients who make the same recurring payments to your business on a set schedule.
Invoices for products typically include line items for each product, while invoices for services can be a bit more complex and might include line items for billable expenses (like gas, meals or material costs) and billable hours (organized by task, project, etc.). For that reason, invoicing software usually comes with time and expense trackers, too. Other invoice components include payment terms, descriptions of products or services, billable rates and fields for adding sales tax.
Each of NerdWallet’s invoicing software picks enables online invoicing, meaning you can send invoices and accept payments digitally. They’re also cloud-based and accessible from anywhere with an internet connection.

How does online invoicing work?

Online invoicing is a similar process to paper invoicing in that you send customers the same information but in a digital format. You can use online invoicing software to select a template and add the billing information. Once you generate the invoice, the software notifies the customer by email. The customer can view the invoice immediately and pay digitally on the spot if you've enabled online payments.

Pros

Online invoicing software, as opposed to paper invoicing, has become the norm for many small businesses, because it offers a handful of benefits, including the following:
  • Immediate customer receipt. Customers receive online invoices immediately, 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.
  • 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.

Cons

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.

How to choose invoicing or billing software

Ask yourself these questions to help determine what invoicing software is right for you.

Is it scalable?

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.

Is it easy to use for you and your clients?

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.

Does it integrate with the software you already use?

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 a time-tracking app, for instance, consider switching to an invoicing software with native, or built-in, integrations that can meet those needs, too.

How much does it 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.
Last updated on August 11, 2023

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