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).
FreshBooks offers invoicing features that are competitive with others in this space, albeit for a price. Still, 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 and PayPal payments, the software enables ACH transfers, too. And 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 a solopreneur or freelancer looking for an all-in-one invoicing and accounting product with a sleek mobile app, FreshBooks is a great choice.
Pros
- Built-in, direct integrations with dozens of other software programs, including payroll and e-commerce software. Payment integrations include FreshBooks Payments, Stripe and PayPal.
- Bookkeeping and accounting features.
- Client portal lets customers pay invoices and communicate with business owners.
- Mobile app recognizes when you’re driving and tracks miles for you.
- Snap and upload photos of billable expense receipts on the go.
Cons
- No free option, and adding users costs extra.
- Lower-tier plans have billable client limits.
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.
Like FreshBooks, QuickBooks Online is known first and foremost as accounting software. However, its reporting suite and transaction-tracking capabilities make it a better solution for growing businesses with more complex financial needs. You’ll get the most out of its invoicing features if you subscribe to the Plus plan or higher. That way, you can mark expenses as billable and let your clients pay in increments over the course of a project. All plans let you set up recurring invoices and give clients the option to add tips to their invoices. You can also accept ACH transfers and Venmo payments in addition to card payments.
Pros
- Bookkeeping and accounting features, including a robust suite of reports.
- Photograph receipts and automatically match them to existing expenses.
- Mobile app automatically tracks miles for you and can categorize trips as business or personal.
- Integrates with hundreds of apps, including POS systems, e-commerce products and payroll software. Payment integrations include QuickBooks Payments, PayPal and Apple Pay.
Cons
- No free option, and plans can be expensive.
- Must subscribe to the Essentials plan to enter billable hours and the Plus plan for billable expenses.
- Automatic time-tracking software costs extra.
Xero
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).
When it comes to invoicing, Xero delivers on all the basics and then some. You can send automatic payment reminders to clients, create customizable invoice templates and accept payments via ACH transfer 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.
Pros
- Bookkeeping and accounting features, plus unlimited users in all plans.
- Use Hubdoc to capture bills and receipts.
- Integrates with more than 1,000 apps, including POS systems, payroll software and e-commerce products. Payment integrations include Stripe, PayPal, Apple Pay and Google Pay.
Cons
- No free option.
- Early plan limits bills and invoices to five and 20 per month, respectively.
- Must subscribe to highest-tier Established plan to access mileage and time tracking.
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.
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.
Pros
- Free plan supports unlimited invoicing and unlimited users.
- Create digital contracts for clients to e-sign.
- Send invoices via SMS.
- Integrates with various third-party products, including QuickBooks Online and Xero. You can accept online payments through Square, Apple Pay or Google Pay.
Cons
- Must subscribe to paid plan to auto-convert estimates to invoices.
- No in-house time tracking or expense receipt scanning.
Our picks for
Free invoicing software
Zoho Invoice
Learn more
on Zoho Invoice's secure website
Starting at
$0
Free.
Promotion
N/A
Zoho Invoice is comprehensive yet easy to use. You can keep track of hours, expenses and tasks 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 1,000 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.
Pros
- Send up to 1,000 invoices per year for free.
- Portal lets clients pay invoices and view their transaction history.
- Payment gateway integrations include Stripe, PayPal, Square and more.
- Autoscan uploaded receipts and convert them into expenses.
Cons
- Limited third-party integrations outside of other Zoho products and QuickBooks Online.
Wave Invoicing
Starting at
$0
Free.
Promotion
N/A
Wave is a simple accounting and invoicing solution for freelancers, solopreneurs and microbusinesses that mostly receive payments via invoice. It keeps a log of all the products or services you sell so that you can quickly select them as line items in invoices. Wave will send automated email reminders to clients who haven’t paid you yet, and you can set up recurring invoices and automatic credit card payments for your repeat customers. If you want to be informed each step of the way, it will also send you notifications as soon as an invoice has been viewed, paid or is due. 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.
Pros
- Free plan supports unlimited invoicing and an unlimited number of users.
- Upload photos of receipts and attach them to expenses.
- Accept card and Apple Pay payments online with in-house payments software.
Cons
- Integrations are limited to Wave’s in-house products.
- No time-tracking features.
Our pick for
Payment flexibility
Invoice Ninja
Starting at
$0
Additional pricing tiers (per month): $10, $14.
Promotion
N/A
If you’re tired of paying credit card processing fees but don’t want to limit clients’ payment options, Invoice Ninja could be an ideal solution for your business. The invoicing software lets you pass credit card processing fees to customers in the form of a percentage or flat fee. Invoice Ninja can calculate gateway fees and add the exact amount to the invoice, too. Fees aside, you can also ask customers to pay a deposit upfront and add taxes and discounts 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).
Pros
- Free plan supports unlimited invoices for up to 20 clients.
- Automatically transfer credit card processing fees to customers and allow them to tip on invoices or pay incrementally over time.
- Integrates with more than a dozen payment gateways including Stripe, PayPal, Square and Apple Pay.
- Built-in inventory tool tracks items as they’re invoiced.
- Portal lets clients view their invoices and payment history.
Cons
- No direct integrations with bookkeeping or accounting software.
- Enterprise plan pricing increases as you add users.
- No receipt upload tool for billable expenses.
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.
If you’re feeling overwhelmed by all of the features other software programs offer and all you need to do is send invoices and receive payments, Hiveage stands out for its simplicity. Creating one-time and recurring invoices is straightforward, the dashboard is easy to navigate, and it offers 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.
Pros
- Free plan supports unlimited invoicing for up to five clients.
- Integrates with a dozen payment gateways including Stripe, PayPal, Square and more.
- Assign different billable rates to each type of task.
- Direct clients to your own custom domain with the Plus plan.
Cons
- No built-in, direct integrations with bookkeeping or accounting software.
- All plans have client limits (highest-tier Plus plan caps at 1,000).
- No receipt capture tool for billable expenses.
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.
Harvest allows members of a project team to track their hours and expenses 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.
Pros
- Offers a free plan (limited to two projects).
- Advanced time-tracking features, including integrations with Google Calendar, Slack, Asana, Trello and other project management tools.
- Display billable hours by task, person or project on invoices.
- Snap and upload photos of billable expense receipts with the mobile app.
- Integrates with QuickBooks Online and Xero for accounting.
Cons
- Invoice customization options are limited. Free users can’t add company logos to invoices, and Harvest offers only two templates (one PDF and one GDoc).
- Payment integrations are limited to Stripe and PayPal.
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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
Frequently Asked Questions
Bills are technically different from invoices, but the terms are often used interchangeably. Both indicate that payment is due, but bills are typically paid on the spot, whereas invoices include payment terms that establish a set amount of time a client has to submit full or partial payment. Regardless of when payment is due, you might hear clients refer to an invoice you issued as their “bill.”
In that sense, invoicing software and billing software are essentially the same thing, unless you run a subscription-based business. In that case, you might look specifically for subscription billing software.
The best invoicing software for your small business depends on what type of company you own, whether you provide products or services, your budget and which features you need. For example, project-based businesses may need more granular invoicing details, like billable hours by task or person, than retail businesses.
Think about where your billing process begins and ends. Maybe it starts with a quote and progresses into recording billable hours and expenses. After creating and sending an invoice, you might email automated payment reminders to your client and, finally, accept their payment online. The best invoicing software for you will be able to accommodate each step.
If you’d like to accept payments online, make sure your payment gateway is PCI compliant — this means it follows the data security standards established by global leaders in the payment industry.
When choosing invoicing software, look for basic features like the ability to send estimates and bill for hours and expenses. Each product also has its own invoice templates, so you’ll want to verify that they contain the fields you need. You’ll usually find invoice fields for sales tax and due dates, for example.
Other invoice software features to consider include the ability to set different billable rates depending on the job, a client portal and integrations. Ideally, your invoicing software will share data with your accounting software and accommodate your payment gateway.
Standalone invoicing software can cost from $10 to $49 or more per month, but many products offer free subscriptions, too. Some invoicing software charges per user, while other products make you upgrade if you want to send unlimited invoices to an unlimited number of clients.
However, if you already use accounting software, the least expensive option would be sticking with its invoicing feature as opposed to subscribing to an additional product.