Best Invoicing Software for 2026: 11 tools compared for buyers
If you are looking for the best invoicing software, the answer depends on who you bill and how they pay. This page covers options for freelancers, service firms, online sellers and finance teams that also pay bills, from free apps to platforms tied to full accounting. Begin with the quick picks, then check the comparison table and the write-up for each tool.
The tools were compared on fit for business type, how well they handle recurring invoices, online payments, reminders and accounting sync, how easy they are to start using, and how clearly the vendor shows fees. The page also lists what vendors publish about security, user controls and contract terms, so you can prepare questions before choosing.
Our shortlist at a glance
- Best for teams that pair invoicing with bill approvals
Bill.comIt handles both payables and receivables with approval chains, syncs two-way with QuickBooks Online and Xero from the Team plan, and sends automated payment reminders on all plans.
$49 per user per month (Essentials) - Best for unlimited users and multi-currency work
XeroPlans are flat-priced with no per-user license fees, it is native accounting, and reviewers cite strong automatic bank reconciliation for owners without an accounting background.
$27/month (Early) - Easiest guided setup for non-accountants
FreshBooksRecurring invoices, late-payment reminders, time tracking and expenses come on all tiers, and reviewers call invoicing very easy for people without accounting training.
$23/month (Lite, 5 billable clients) - Best self-hosted option
Invoice NinjaThe open source app can be hosted or self-hosted, offers a client portal, recurring invoices and multiple gateways, and a free tier covers 5 clients.
Free (5 clients); Pro $140/year - Best when clients already pay through PayPal
PayPal InvoicingInvoices accept PayPal, Venmo, cards and ACH, support 24 currencies in 200+ markets, and include automatic reminders with no monthly fee.
No monthly fee; 2.99% + $0.49 per card payment - Best for sellers already on Square
Square InvoicesInvoices sit alongside Square payments with card and ACH collection, a free plan with no software fee, and recurring invoices in the feature set.
Free; Plus $49/month
What is invoicing software?
Invoicing software lets a business bill customers without Word templates or spreadsheets. You enter the work done, the tool produces a professional invoice, emails it and shows when it was viewed and paid. Most products let clients pay by card or bank transfer from a link, send automatic reminders for late payments and repeat invoices on a schedule for retainers. Many connect to bookkeeping so every invoice lands in the ledger. Freelancers, agencies, shops and finance teams use it, and what they need from it differs a lot.
Invoicing Software side by side
| Tool | Best for | Starting price | Free plan or trial |
|---|---|---|---|
| Bill.com | Best for teams that pair invoicing with bill approvals. | $49 per user per month (Essentials) | Free trial |
| Xero | Best for unlimited users and multi-currency work. | $27/month (Early) | Free trial |
| FreshBooks | Easiest guided setup for non-accountants. | $23/month (Lite, 5 billable clients) | Free trial |
| Invoice Ninja | Best self-hosted option. | Free (5 clients); Pro $140/year | Free plan |
| PayPal Invoicing | Best when clients already pay through PayPal. | No monthly fee; 2.99% + $0.49 per card payment | Free plan |
| Square Invoices | Best for sellers already on Square. | Free; Plus $49/month | Free plan |
 QuickBooks Online | Small businesses that work with an outside accountant who already uses QuickBooks. | $38/month (Simple Start, 1 user) | Free plan, Free trial |
 Harvest | Agencies and consultancies that bill clients by the hour from tracked time. | $9/seat/month billed annually (Teams); Free plan $0 | Free plan, Free trial |
 Zoho Invoice | Freelancers and micro businesses that want free invoicing. | Free | Free plan |
 Wave | Freelancers and micro businesses wanting free bookkeeping. | $0 (Starter); Pro $19/month | Free plan |
 Stripe Invoicing | Businesses already processing payments through Stripe. | 0.4% per paid invoice (Starter) | No |
Prices as published by each vendor on October 24, 2026. "Contact sales" means the vendor publishes no price.
The 11 invoicing software tools in detail
Best for teams that pair invoicing with bill approvals
Bill.com
Per-user AP and AR automation platform that sends invoices, collects payments and syncs with QuickBooks, Xero and NetSuite.
Finance teams that want bill pay, invoicing and approval chains together, on QuickBooks Online or Xero with two-way sync, fit best. Essentials costs $49 per user monthly, and Essentials syncs only by CSV. Reviewers flag service quality and limited international payments.
- Best for
- Finance teams that run both bill pay and invoicing in one tool with approval chains.
- Company size
- Small to mid-size businesses and accounting firms (accountant partner programs); Enterprise tier for larger finance teams.
Key features
- Recurring invoices and subscriptions
- Recurring invoices listed explicitly on Corporate and Enterprise; Essentials and Team list 'send invoices flexibly' only.
- Online payment acceptance
- Card 2.9% and ACH $0.59 on received payments; instant transfer 1.25% ($1 min)
- Automated payment reminders
- Automated payment reminders on all plans.
- Accounting integration
- 2-way sync QuickBooks Online/Pro/Premier and Xero from Team; NetSuite, Sage Intacct, Dynamics and QuickBooks Enterprise on Enterprise; Essentials is CSV only.
Pros
- Scalable and centralized payment management.
- Approval workflows and audit trail for bills.
Cons
- Customer service quality.
- Difficulty integrating with some accounting systems.
- Limited international payment capabilities.
Pricing: $49 per user per month (Essentials) · Free trial
Best for unlimited users and multi-currency work
Xero
New Zealand-built cloud accounting with three flat-priced plans and no per-user license fees.
Firms that want unlimited users without per-seat cost, or that deal in several currencies, should trial Xero. Plans are flat from $27 monthly on Early, which limits bills and invoices. Ask your accountant about practice tools, and check payroll and project charges billed in arrears.
- Best for
- Teams that need unlimited users without per-seat cost.
- Company size
- Small businesses; Established for larger teams.
Key features
- Accounting integration
- Native accounting product.
- Time and expense billing
- Projects tracking on Established.
- Reporting and aging
- Cash flow forecast 30/60/180 days by plan.
Pros
- Usable for owners without accounting background.
- Strong automatic bank reconciliation.
- No per-user fees.
Cons
- Repeated list price increases.
- US payroll and tax depth thinner than QuickBooks.
- Plan limits on bills and invoices on Early.
Pricing: $27/month (Early) · Free trial
Easiest guided setup for non-accountants
FreshBooks
Invoicing-first accounting for freelancers and service firms, priced by billable client count.
Freelancers and service firms billing a handful of clients get guided invoicing with time tracking, with Lite at $23 monthly for five billable clients. Pricing follows client count, plus $11 per added user, so staffing plans matter. Skip it if you need inventory.
- Best for
- Freelancers and service businesses billing a limited number of clients.
- Company size
- Freelancers to small service firms.
Key features
- Recurring invoices and subscriptions
- Automated recurring invoices on all tiers.
- Online payment acceptance
- Cards, ACH, Apple Pay, Google Pay, BNPL; lower fees on Select.
- Automated payment reminders
- Automated late payment reminders on all tiers.
- Sales tax and multi-currency
- Tax-time reports on Lite; multi-currency not confirmed by the vendor.
Pros
- Very easy invoicing for non-accountants.
- Strong customer support reputation.
- Time tracking integrated with billing.
Cons
- Cost for solo users and annual price increases.
- Limited invoice flexibility.
- Access to records after cancelling.
Pricing: $23/month (Lite, 5 billable clients) · Free trial
Best self-hosted option
Invoice Ninja
Open source invoicing app available hosted or self hosted, with a free tier limited to 5 clients.
Technically minded freelancers and small firms can self-host to dodge per-seat fees, or use the hosted app free for five clients, then Pro at $140 yearly. Expect a technical interface and a smaller review base, only 22 on G2, so test support responsiveness.
- Best for
- Freelancers and small firms comfortable self hosting to avoid per seat fees.
- Company size
- Freelancers and small businesses (95.5% small business reviewers on G2)
Key features
- Recurring invoices and subscriptions
- Supported (Pro)
- Online payment acceptance
- Multiple gateways; not confirmed by the vendor in detail.
- Branding and templates
- Custom branding URL on Pro; client portal branded on all plans.
Pros
- Low cost compared with per seat invoicing tools.
- Self hosting gives data control and flexibility.
Cons
- Interface and setup feel technical.
- Limited review base and support depth versus larger vendors.
Pricing: Free (5 clients); Pro $140/year · Free plan
Best when clients already pay through PayPal
PayPal Invoicing
Invoice feature inside a PayPal business account with no monthly fee and per transaction charges.
Handy when clients already pay through PayPal: no monthly fee, with cards at 2.99% plus $0.49 each. It handles 24 currencies and sends reminders. There is no accounting or time tracking, so businesses wanting low payment fees or bookkeeping should pick another route.
- Best for
- Freelancers whose clients already pay through PayPal.
- Company size
- Freelancers and small businesses.
Key features
- Recurring invoices and subscriptions
- Recurring invoices or templates.
- Online payment acceptance
- PayPal, Venmo, cards, Apple Pay, Pay Later, ACH.
- Automated payment reminders
- Automatic reminders.
- Sales tax and multi-currency
- 24 currencies in 200+ markets.
Pros
- Easy to use and set up.
- Clients trust and already use PayPal.
Cons
- Transaction fees feel high.
- Few billing features beyond invoices.
Pricing: No monthly fee; 2.99% + $0.49 per card payment · Free plan
Best for sellers already on Square
Square Invoices
Invoicing bundled with Square payments, with Free, Plus and Premium tiers that mainly change card fees and features.
Businesses already running card sales through Square can send invoices from the same account, with the Free tier carrying no software fee. Higher tiers mainly trim card fees and add templates. Reviewers note the absence of e-signature, so test your approval flow.
- Best for
- Small businesses already taking payments through Square.
- Company size
- Small businesses and sole traders.
Key features
- Recurring invoices and subscriptions
- Included in invoices features.
- Online payment acceptance
- Card, ACH; fees by plan.
- Branding and templates
- Custom invoice templates start on Plus.
Pros
- Simple interface and easy sending.
- Fast payouts when using Square.
Cons
- Processing fees.
- No e-signature feature.
Pricing: Free; Plus $49/month · Free plan
QuickBooks Online
Intuit's cloud bookkeeping suite with four paid tiers that scale by user cap (1, 3, 5, 25) rather than per seat.
Owners who work with an outside accountant already on QuickBooks will find familiar territory and a big app ecosystem. Starting at $38 monthly, the four tiers cap users at 1, 3, 5 and 25, so growth forces a jump from Plus to Advanced. List prices rose in 2025.
- Best for
- Small businesses that work with an outside accountant who already uses QuickBooks.
- Company size
- 1 to 25 users; Advanced aimed at the upper small business end.
Key features
- Online payment acceptance
- QuickBooks Payments, card and ACH; Free plan gets unlimited invoices if you enable Payments.
- Accounting integration
- Native accounting product.
- Time and expense billing
- Employee time added to invoices from Essentials.
- Branding and templates
- Custom lead form on Essentials; not confirmed by the vendor for templates.
Pros
- Easy to learn and intuitive for non-accountants.
- Large ecosystem of connected apps and accountant familiarity.
- Cloud access lets owner and bookkeeper work at the same time.
Cons
- Repeated price increases and promo-then-list pricing.
- Support quality and billing issues reported by some reviewers.
- User caps force a jump from Plus (5 users) to Advanced (25 users)
Pricing: $38/month (Simple Start, 1 user) · Free plan, Free trial
Full QuickBooks Online review QuickBooks Online alternatives
Harvest
Time tracking tool with built in invoicing and expense tracking, priced per seat with a one seat free tier.
Agencies and consultancies billing by the hour can turn tracked time and expenses straight into invoices, avoiding re-entry. One seat with two projects is free, and Teams runs $9 per seat monthly on annual billing. Check SCIM needs, since a third-party guide says none is offered.
- Best for
- Agencies and consultancies that bill clients by the hour from tracked time.
- Company size
- Small teams to enterprise; SSO and approvals aimed at larger teams.
Key features
- Time and expense billing
- Time and expenses roll into invoices.
- Reporting and aging
- Custom reports (4 on Teams, unlimited on Enterprise)
Pros
- Simple timer that is easy for staff to adopt.
- Time entries turn into invoices without re-keying.
Cons
- Reporting and budget features feel limited versus project tools.
- Costs rise per seat for the approvals and SSO tier.
Pricing: $9/seat/month billed annually (Teams); Free plan $0 · Free plan, Free trial
Zoho Invoice
Free invoicing app from Zoho with usage caps, upgraded through Zoho Billing or Zoho Books.
Freelancers and micro businesses wanting to bill clients at no cost can try this, especially if they already use Zoho apps. Annual caps on customers and invoices apply, and the free plan prints Powered by Zoho branding. Growth means moving to Zoho Billing or Zoho Books.
- Best for
- Freelancers and micro businesses that want free invoicing.
- Company size
- Freelancers and small businesses.
Key features
- Accounting integration
- Zoho Books and other Zoho apps (not confirmed by the vendor in detail)
- Branding and templates
- Invoice branding on free plan shows Powered by Zoho.
Pros
- Free and easy to start.
- Quick invoice creation and customization.
Cons
- Free plan limits on customers and invoices.
- Cannot change currency while generating invoices.
Pricing: Free · Free plan
Wave
Free-to-start bookkeeping and invoicing for tiny businesses that makes money on payments and a $19 Pro tier.
Wave offers free-to-start bookkeeping and invoicing for tiny businesses, earning from card payments at 2.9% plus $0.60 on Starter and from a $19 Pro tier. Reviewers like the free core bookkeeping and simple interface but cite slow support.
- Best for
- Freelancers and micro businesses wanting free bookkeeping.
- Company size
- Solo and micro businesses.
Key features
- Online payment acceptance
- 2.9% + $0.60 per card on Starter.
- Accounting integration
- Native accounting.
Pros
- Free core bookkeeping.
- Simple interface.
Cons
- Slow customer support.
- Payment fees replace subscription revenue.
- Limited depth for growing firms.
Pricing: $0 (Starter); Pro $19/month · Free plan
Stripe Invoicing
Usage-priced invoicing add-on to Stripe Payments that takes a percentage of each paid invoice instead of a seat fee.
If Stripe already processes your payments, invoices can ride on top with no seat fee, charging 0.4% per paid invoice on Starter. Stripe Tax and syncs to NetSuite, Xero and QuickBooks are available. Service firms needing time or expense billing will find it thin.
- Best for
- Businesses already processing payments through Stripe.
- Company size
- Mostly small businesses (79.2% of G2 reviews)
Key features
- Recurring invoices and subscriptions
- Recurring invoicing via Stripe Billing; Smart Retries recover about 38% of originally failed payments (Stripe figure)
- Online payment acceptance
- Card, bank transfer and 100+ global payment methods; ACH credit with virtual bank account numbers and auto-reconciliation.
- Automated payment reminders
- Automatic email reminders when invoices are due or overdue.
- Sales tax and multi-currency
- Manual tax rates or automatic calculation, collection and filing via Stripe Tax; 135+ currencies, 25+ languages.
Pros
- Easy setup and administration.
- Fits naturally if Stripe already handles payments.
Cons
- Limited invoicing depth versus dedicated tools (inferred from small-team skew; not confirmed by the vendor)
- Support quality scored lowest of sub-ratings (8.1)
Pricing: 0.4% per paid invoice (Starter)
What to look for in invoicing software
The best invoicing software is the one that gets your invoices paid with the least manual follow-up. Think about how you bill, whether by project, hour, subscription or product sale, and how your customers prefer to pay. Then check whether you need a standalone tool or full accounting, how many clients and users you have, and which accounting system must receive the data. The criteria below explain what to look for in each area.
Recurring invoices and subscriptions
Recurring invoices repeat automatically on a schedule, which saves time on retainers, rent, memberships and subscriptions. Good tools let you set the interval, edit the template and charge a saved payment method. Check whether the feature is on every plan, since some vendors reserve it for higher tiers.
- Bill.com: Recurring invoices listed explicitly on Corporate and Enterprise; Essentials and Team list 'send invoices flexibly' only.
- FreshBooks: Automated recurring invoices on all tiers.
- Invoice Ninja: Supported (Pro)
- PayPal Invoicing: Recurring invoices or templates.
- Square Invoices: Included in invoices features.
Online payment acceptance
Online payments let a customer pay straight from the invoice by card, bank transfer or a wallet, which shortens the wait for money. Look at which methods are supported, how quickly funds arrive and what each payment costs. Some tools run their own processor, while others connect to a gateway you choose.
- Bill.com: Card 2.9% and ACH $0.59 on received payments; instant transfer 1.25% ($1 min)
- FreshBooks: Cards, ACH, Apple Pay, Google Pay, BNPL; lower fees on Select.
- Invoice Ninja: Multiple gateways; not confirmed by the vendor in detail.
- PayPal Invoicing: PayPal, Venmo, cards, Apple Pay, Pay Later, ACH.
- Square Invoices: Card, ACH; fees by plan.
Automated payment reminders
Automatic reminders email customers before and after the due date, so you do not have to chase each one. Strong tools let you set the timing and wording and stop when payment arrives. Weaker ones leave reminders manual. In a demo, set up a late-payment sequence and view the message a client would get.
- Bill.com: Automated payment reminders on all plans.
- FreshBooks: Automated late payment reminders on all tiers.
- PayPal Invoicing: Automatic reminders.
- Stripe Invoicing: Automatic email reminders when invoices are due or overdue.
Sales tax and multi-currency
Tax features add the correct sales tax or VAT to each line and report what you owe. For US sellers this means rates by location, and for others it means multiple tax types and currencies. Confirm whether the tool calculates tax automatically or only applies rates you enter, and whether foreign-currency invoices are supported.
- FreshBooks: Tax-time reports on Lite; multi-currency not confirmed by the vendor.
- PayPal Invoicing: 24 currencies in 200+ markets.
- Stripe Invoicing: Manual tax rates or automatic calculation, collection and filing via Stripe Tax; 135+ currencies, 25+ languages.
Accounting integration
An accounting integration sends invoices and payments to your books so nothing is typed twice. Look for a two-way sync with QuickBooks, Xero or NetSuite, and check which plan includes it. If the invoicing tool is already an accounting product, the question becomes whether you need its full ledger.
- Bill.com: 2-way sync QuickBooks Online/Pro/Premier and Xero from Team; NetSuite, Sage Intacct, Dynamics and QuickBooks Enterprise on Enterprise; Essentials is CSV only.
- Xero: Native accounting product.
- FreshBooks: Native accounting from Plus.
- QuickBooks Online: Native accounting product.
- Zoho Invoice: Zoho Books and other Zoho apps (not confirmed by the vendor in detail)
Time and expense billing
Service businesses need billable hours and expenses to flow onto invoices. A timer, timesheets and reimbursable expense lines remove the end-of-month reconstruction. Product sellers can skip this. If you bill by the hour, test that tracked time converts to an invoice without re-keying.
- Bill.com: No billable-time invoicing found; separate BILL Spend & Expense product covers expenses.
- Xero: Projects tracking on Established.
- FreshBooks: Unlimited time tracking and expenses on all tiers.
- QuickBooks Online: Employee time added to invoices from Essentials.
- Harvest: Time and expenses roll into invoices.
Branding and templates
Customization covers logos, colors, fields, email templates and the client-facing payment page, and it shapes how professional your billing looks. Check whether branding can be removed and whether custom templates are included on your plan. Some free plans add the vendor's own mark to every invoice.
- FreshBooks: Custom email templates on Premium; branding removal on Select.
- Invoice Ninja: Custom branding URL on Pro; client portal branded on all plans.
- Square Invoices: Custom invoice templates start on Plus.
- QuickBooks Online: Custom lead form on Essentials; not confirmed by the vendor for templates.
- Zoho Invoice: Invoice branding on free plan shows Powered by Zoho.
Reporting and aging
Reports show who owes you money and for how long, with aging summaries, income by client and payment history. These help you plan cash flow and decide whom to chase. Compare the standard reports on each plan, and check whether you can export data for your accountant.
- Bill.com: Cash flow forecasting from Team (QBO users); full reporting detail not confirmed by the vendor.
- Xero: Cash flow forecast 30/60/180 days by plan.
- FreshBooks: Financial and double-entry accounting reports from Plus.
- QuickBooks Online: Top 3 reports on Free, general business reports on Simple Start, enhanced reports on Essentials, custom KPIs and dashboards on Advanced.
- Harvest: Custom reports (4 on Teams, unlimited on Enterprise)
Pricing model and transparency
Invoicing tools charge through free tiers with caps, flat monthly plans by client count or user cap, per-user fees or a percentage of each payment. Payment processing fees often matter more than the subscription. Estimate a typical month of invoices and payments, then compare the full total.
- Bill.com: Per user per month plus per-transaction fees for payments.
- Xero: Flat per plan; usage charges for payroll, projects and expenses billed monthly in arrears.
- FreshBooks: Client-count tiers plus $11 per extra user.
- Invoice Ninja: Flat annual fee, not per invoice.
- PayPal Invoicing: Per transaction fees only.
Target company size
Tools for freelancers keep things simple and cheap, while mid-market billing systems add approvals, multiple entities and deeper integrations. A solo tool can run out of clients, users or controls as you grow, and a heavy system slows a small team. Choose one built for your current size with some room to grow.
- Bill.com: Small to mid-size businesses and accounting firms (accountant partner programs); Enterprise tier for larger finance teams.
- Xero: Small businesses; Established for larger teams.
- FreshBooks: Freelancers to small service firms.
- Invoice Ninja: Freelancers and small businesses (95.5% small business reviewers on G2)
- PayPal Invoicing: Freelancers and small businesses.
Buying invoicing software: security, admin and vendor checks
Once a tool fits the team, the purchase depends on what the vendor commits to in writing: single sign-on, user provisioning, audit logs, where data lives and the contract. The checks below use each vendor's public pages, so a blank means "ask", not "no".
- Try before you buy
- 10 of 11
- Publish SAML SSO
- 2 of 11
- Publish SCIM provisioning
- 0 of 11
- Publish a DPA
- 1 of 11
3 free trials, 7 free plans
Bill.com and Harvest
ask every vendor in writing
Stripe Invoicing
Must-haves and what each vendor publishes
A blank is not a no, but it is work for your security review. Bill.com publishes the most (3 of 5); Invoice Ninja, PayPal Invoicing, QuickBooks Online and Square Invoices and 3 more publish none of these controls, so every question goes to their sales team. Tick what your team requires; vendors that drop out show why, and the budget check prices the plan that actually includes single sign-on when you require it.
All 11 vendors shown. Tick a must-have to filter. ● published with the plan, ◐ mentioned without plan or details, ○ not on the vendor's public pages.
| Vendor | SAML SSO | SCIM | Audit logs | Data residency | DPA |
|---|---|---|---|---|---|
| Bill.com3 of 5 published | ● PublishedCorporate | ○ Not published | ● Publishedall plans | ● PublishedUS only found: AP/AR in certified third-party data centers… | ○ Not published |
| Harvest3 of 5 published | ● PublishedEnterprise | ○ Not published | ● PublishedEnterprise | ● PublishedGoogle Cloud multi zone; region not named | ○ Not published |
| Stripe Invoicing1 of 5 published | ○ Not published | ◐ Mentioned | ◐ Mentioned | ○ Not published | ● Published |
| FreshBooks1 of 5 published | ○ Not published | ○ Not published | ○ Not published | ● PublishedThird-party review says personal data processed in Canada… | ○ Not published |
| Invoice Ninja0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| PayPal Invoicing0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| QuickBooks Online0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Square Invoices0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Wave0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Xero0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
| Zoho Invoice0 of 5 published | ○ Not published | ○ Not published | ○ Not published | ○ Not published | ○ Not published |
How to evaluate invoicing software
Invoicing tools handle money, so evaluation should cover the full path from invoice to bank deposit to ledger. Use the criteria below as a test plan: create a real invoice, pay it, reconcile it and run a report. Note the controls around who can send, approve and edit, since those matter more as the team grows. Ask each vendor for written answers on data handling and fees, and compare them side by side.
Recurring invoices and subscriptions
Set up a recurring invoice for a real retainer and review the next three scheduled dates. Check how the tool handles price changes, paused schedules and failed payments. Ask whether recurring templates or client numbers are limited on your plan.
Online payment acceptance
Send a test invoice and pay it with a card and a bank transfer. Verify the payout timing, the fee shown to you and the receipt the client gets. Ask which processors are supported and who handles disputes.
Automated payment reminders
Configure a reminder schedule and check the exact wording clients will see. Confirm you can set timing, stop reminders after payment and edit the message. Ask whether reminders are on your plan or a paid add-on.
Sales tax and multi-currency
Create invoices for a customer in another state or currency and inspect the tax lines. Check how rates are maintained and whether rounding matches your accountant's method. Ask who is responsible if a rate is wrong.
Accounting integration
Connect QuickBooks or Xero in a trial and check how invoices, payments and customers sync. Look for duplicates, missing fields and the direction of sync. Ask whether the sync is automatic or requires manual CSV, as it does on some lower plans.
Time and expense billing
Log billable hours and an expense, then turn them into an invoice. Check how rates, tax and approvals are handled before the invoice goes out. Ask who can edit entries after they are billed.
Branding and templates
Build a branded template with your logo, terms and payment details. Check how it renders on mobile and in PDF, and whether fields such as purchase order numbers are supported. Ask whether white-label options are on your plan.
Reporting and aging
Run an aging report on test data and check that the buckets match what you expect. Export it and see whether your accountant can use the format. Ask about audit history for edits and deletions.
Pricing model and transparency
Ask the vendor for a written quote that covers clients, users, invoices and payment fees at your volume. Check the free plan limits and what triggers an upgrade. Confirm how pricing changes at renewal.
Target company size
Test with the number of users who will use it, with their real permissions. Check whether the tool offers roles for staff, approvers and accountants. Ask for a reference customer of similar size.
Questions to ask invoicing vendors
Invoicing tools sit between your customers and your bank, so the sales call should cover security, controls and exit terms as well as features. Most pricing pages leave these out. Ask each vendor the questions below and keep the answers in writing so you can compare them fairly before you sign. Use the same list for every vendor so the answers stay comparable.
Do you support SSO and which plan includes it?
Bill.com lists SSO on its Corporate and Enterprise plans, and Harvest lists it on Enterprise only. Many tools in this list do not mention SSO at all, so ask directly and confirm the plan.
How do accounting sync and approvals work?
Sync with QuickBooks or Xero can be manual on lower plans and automatic on higher ones. Ask what gets synced, how conflicts are resolved and who can approve invoices before they are sent.
What fees apply to payments and who gets the funds?
Fees vary by method, such as ACH, card and international wire. Ask for a complete fee list, payout timing and what happens to funds if the account is paused.
How can we export our data if we leave?
Ask for the export formats, whether attachments and history are included and how long you have after cancellation. Invoice history is a legal record, so you need to be able to take it with you.
What are the contract, renewal and cancellation terms?
Terms range from monthly cancel-anytime to annual billing, and some pages do not state them. Ask about auto-renewal, notice periods and what happens to your data after you cancel.
How to run the decision
Run the decision as a short, structured project. Write the requirements for sending, paying and reconciling invoices, then shortlist three or four tools. Pilot each on a real billing cycle with the person who reconciles the books. Request written answers on fees, access controls and exit terms. Decide with finance and the invoice senders in the room, and document why the winner fits.
Our recommendation
Match the tool to how you bill and get paid. Freelancers can start with a free or low-cost app, service firms with a product that tracks time, and growing businesses with accounting that includes invoicing or an AP and AR platform. Before committing, send a test invoice, check the fee on one real payment, and ask what limits on clients or users could force an upgrade.
Invoicing Software: frequently asked questions
What is invoicing software?
Use it to create and send invoices, follow up on unpaid ones and get paid. Add-ons often include recurring billing, estimates, expense tracking and accounting sync. Some products only invoice, while others sit inside a complete accounting suite.
What is the best invoicing software for small business?
Small service businesses often look at FreshBooks, Xero or QuickBooks Online, while sellers already on Square or Stripe can use their invoicing tools. Freelancers watching costs can start with Zoho Invoice or Wave. The best pick depends on whether you want invoicing only or full bookkeeping.
Is there free invoicing software?
Several tools charge nothing to start: Zoho Invoice with yearly caps, Wave Starter, Invoice Ninja for up to five clients, Square Invoices Free and one seat on Harvest. Wave and Square make their money on payment processing, so compare what each payment costs you.
Can invoicing software accept online payments?
Most can. FreshBooks takes cards, ACH, Apple Pay and Google Pay, PayPal Invoicing takes PayPal, Venmo, cards and ACH, and Stripe Invoicing supports card, bank transfer and 100+ methods. Fees differ, so compare the cost per payment, not just the monthly price.
Do I need accounting software or just invoicing software?
If you only send invoices and track who has paid, an invoicing tool is enough. Once you need bank reconciliation, tax reports or an accountant working in your books, accounting software such as Xero or QuickBooks Online makes sense. Many invoicing tools sync to these when you grow.
Which invoicing software include SSO below the enterprise plan?
QuickBooks Online (No SAML SSO with external identity providers per ThreatLocker and Intuit community answers (older, not confirmed by the vendor in current docs)). The other tools either reserve SAML SSO for their top tier or do not say on their public pages.