Best Billing And Invoicing Software
No monthly subscription fee
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Unlimited invoices available on the free plan
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Integrates directly with Xero accounting software
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Easy virtual payment terminal setup available
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Lets you create and attach contracts within your Square Dashboard
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Billing and invoicing software helps businesses collect payments for the sale of goods and services. For most companies, this software is a vital component of their overall functioning. A quick and efficient invoicing system can help stave off future headaches.
We've compiled a list of the best billing and invoicing software on the market today. We've highlighted their advantages, disadvantages and various features. Continue reading to find out which system best fits the needs of your business.
Our Top Picks For Best Billing And Invoicing Software
- Zoho Invoice – Best Value For Your Money
- Wave – Best For Freelancers
- Xero – Best Accounting Solution
- Freshbooks – Best For Wide Range Of Payment Options
- Square Invoices – Best For Contract Creation And Management
Best Billing And Invoicing Software Reviews
Why we chose it: Zoho Invoice doesn't charge a monthly subscription fee (although you have to pay for every transaction). For a nearly free software service, it offers surprisingly robust functionality.
Zoho is best suited for small business owners. You can only put one user on each account, and account holders are limited to five customers and 1,000 invoices per year. Zoho comes with a wide range of features. You can choose from ten payment gates, including popular third-party processors like Stripe and PayPal. You can also record in-person payments, bank transfers and credit card payments.
You have to pay for each transaction if you choose an electronic payment method. However, the money goes to the payment processor, not Zoho. Zoho lets you track your hours in your invoicing software for added ease. You can also integrate Zoho Invoice with a range of other Zoho software products like Zoho Analytics, Zoho Projects, Zoho People and Zoho Flow. It also integrates with various third-party software systems, such as Google Drive.
Zoho allows for a fair amount of customizability. You can get started with a template and then alter the design to fit your brand's needs. You can adjust your item table, currency and even the language in which you're billing.
Zoho comes equipped with a mobile app making it a solid choice for businesses on the go. Zoho is not accredited by the Better Business Bureau (BBB), and it currently holds an F rating on the BBB website. The BBB assigns ratings based on various factors, such as business type, time in business and history of handling complaints. Currently, Zoho holds a 1/5 star average with six reviews. Reviewers mostly had negative things to say about the company's treatment of their accounts.
Why we chose it: Wave is a free-to-use invoicing and billing software system that lets users send unlimited invoices. Its customizable template options, robust third-party integrations and hard-to-beat price point make it well-suited for freelancers of all kinds.
Although Wave doesn't require a setup fee or ongoing monthly charges, you do have to pay a small surcharge on all electronic payments. Payments made through credit cards and Apple Pay will set you back 2.9 percent of the total bill plus 30 cents. Payments made through the automated clearing house (ACH), a secure method for sending bank transfers, are typically charged one percent.
Wave doesn't offer as many features as some more expensive software programs. However, the ones it does offer are particularly robust. Wave allows its users to customize their templates with logos and designs.
You can take advantage of Wave's reporting function to uncover trends across time. With Wave, it's easy to generate expense tracking reports, invoice updates and profit/loss statements. You can even access payroll data. Wave lets you integrate with a number of other programs, including other Wave software products like Wave Accounting and Wave Payroll, in addition to various third-party integrations.
While Wave does offer a mobile app, it's somewhat limited in its features. If accessing your invoicing software on the go matters a lot to your business, you may be better off elsewhere.
Wave has an A rating from the BBB. Most reviews mention poor customer service and seemingly arbitrary decisions regarding refunds and payment processing.
Why we chose it: Best known for its accounting software, Xero also offers a paid invoicing software system. Its close integration with Xero's accounting software makes it our top pick for accounting solutions.
Xero's all-in-one accounting and invoicing software comes in three pricing tiers. The Early plan costs $13 per month and is best suited for new and very small business owners. You're limited to 20 quotes and invoices and five bill entries per month. It also lets you reconcile bank transactions and create cash flow and business snapshot reports.
The Growing plan costs $37 per month. As its name suggests, it's built for businesses experiencing steady growth. With this plan, you gain access to the same features as the Early plan as well as the ability to send unlimited quotes and invoices. You can also enter unlimited bills, and the software lets you make bulk transactions.
The Established plan costs $70 per month. It offers the same features as the Growing plan but with additional tools such as in-depth analytics and reporting, project tracking, multiple currency acceptance and the ability to claim expenses.
Xero offers a range of integrations, both in-house and third-party. For an additional $40 a month plus $6 per employee, you can integrate with Gusto payroll services. You can also integrate with project management tools like Xero Projects, third-party payment processors, such as Stripe, Google Sheets, HubSpot, Zapier, MailChimp and more.
Xero offers highly customizable invoice templates. Add a logo, set up automatic payment reminders and integrate billing directly with your invoice to let your client pay through their bill. Xero works with multiple payment gateway systems. You can accept payments from services like Stripe and Paypal or use a credit card, debit card or bank transfer. As with other invoicing software systems, you can expect to pay a processing fee for any electronic payment method.
Why we chose it: Freshbooks stands out for accepting numerous payment options. You can get paid through most major online payment processors, such as PayPal and Venmo, via credit or debit card or through an ACH bank transfer.
You can purchase an advanced payment add-on for an extra $20. This feature lets you make proactive credit card charges for your customers, thus speeding along the payment process even more. You can add clickable links to advanced virtual payment terminals on your invoices and throughout your website.
In keeping with industry standards, you have to pay a surcharge for every electronic payment. Freshbooks automatically imports processing fees into your accounting software. You can also accept multiple currencies through Stripe.
Freshbooks lets you choose from four plan choices. The Lite plan costs just $17 a month. Despite its low cost, you can send an unlimited amount of invoices per month. However, it caps you at just five clients. The Plus plan costs $30 a month and increases that number to 50 clients. The Premium plan costs $55 and grants you access to an unlimited number of clients. You have to receive a custom quote for the Select plan. Freshbooks gives you a 10% discount when you make an upfront annual payment.
All four plans offer robust accounting features. As you move up in the pricing tiers, you gain access to more personalized service, lower payment processing fees, dedicated support and detailed analytics. You can also take advantage of Freshbook's mobile app to do your business on the road. Both the app and the desktop software offer user-friendly features, so you don't need to be an accountant to navigate through.
It also offers a variety of integrations with other Freshbooks products and third-party software products, such as Hubspot and Zapier. You can take advantage of double-entry accounting with the Plus plan, while the Premium tier opens up customizable email templates. Both plans offer subscription pricing models.
Freshbooks holds an A+ rating from the BBB.
Why we chose it: Square lets you create customizable contracts directly from your online dashboard. You can attach your contract directly to a Square payment, allowing you to keep all of your information in one place.
Square invoicing currently offers two plan tiers. You can take advantage of its free forever monthly plan, or you can upgrade to its $20-a-month plan for added features. There are additional processing rates and fees with Plus, depending on how you receive payment. The paid plan comes with a 30-day free trial.
Despite its low price point, Square offers robust features, such as unlimited invoicing for both plan options. Both plans also let you schedule recurring invoices, collect deposits and schedule automatic payment notifications. However, you'll need the Plus plan to access most invoice customization options, including a customizable field and layout features.
Square offers a number of integrations, including one with its payment processing software. The software is intuitive and simple to learn. You can access Square invoicing on the go with its mobile app.
While Square lacks many of the advanced analytic and reporting features of its more expensive competitors, it remains a strong choice for smaller businesses looking for an invoicing software solution.
Square is BBB accredited and it currently holds an A+ rating on the BBB website.
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Other Billing And Invoicing Software We Considered
We evaluated each company on our list by comparing a range of factors, including cost, features, tools, limitations, invoice customizability, mobile app availability, integration capabilities and customer reviews. The following companies offer quality services. However, they did not make our list because they failed to excel in one or more of our assessed areas.
Invoice Simple
Invoice Simple offers a low-cost solution to business owners on the go with its mobile-first approach to invoicing. It failed to make our list due to its limitations regarding payment gateway acceptance and its severe invoicing restrictions on its free plan.
Harvest
Harvest offers a low-cost service with detailed tracking features. Its user interface system is easy to navigate, and it offers a 30-day free trial for its paid plan. However, it failed to make our list due to the limited number of payment processing services it accepts and its lackluster customization features.
Hiveage
Hiveage stands out for its free plan option, simplicity of use and multiple payment gateway integrations. However, it failed to make our list due to its lack of direct accounting software integrations and its limitations on the number of clients.
Billing And Invoicing Software Guide
We've put together this handy guide to help you answer all of your billing and invoicing software-related questions.
What Is Billing And Invoicing Software?
Companies use billing and invoicing software to request payment for goods or services rendered. They might invoice a client prior to, at the time of, or after the product or service has been delivered.
Invoices usually include an itemized breakdown of all applicable charges. Online invoices can also include a link to a payment processing website or software service. Some of these software systems also record payment history.
How Does Billing And Invoicing Software Work?
A company starts by creating an invoice. This should include a list of all charges, including taxes and any applicable discounts, along with a final price. Certain details, such as dates and company information, may be automatically populated by the invoicing system. Customizable details, such as specific color patterns or company logos, may inform the look of the invoice.
While invoices used to be sent primarily via mail, hand-delivered or included in the product packaging, most invoices today are sent electronically through email, an electronic web portal, by app, or through another digital channel. Oftentimes, invoicing systems are integrated with billing processing software tools that are capable of accepting and recording payments.
Things To Keep In Mind When Choosing A Billing And Invoicing Software Solution
Not all billing and invoicing software solutions are created equal. To avoid a negative experience, keep the following factors in mind when shopping for your next billing and invoicing software solution.
Whether The Costs Make Sense For The Variety Of Features You Get
The cheapest version isn't always the best. On the flip side, expensive software systems don't always offer greater functionality. For the best results, it's recommended that you first compile a list of your must-have features. Then create a second list containing your nice to haves. With these features in mind, you should be able to more accurately comparison shop between software platforms.
How Many Clients You Have And The Number Of Invoices You Send
Many inexpensive software systems limit the number of invoices you can send and how many recipients you can target in a given time period. Depending on the needs of your business, you may opt for a lower ceiling in exchange for cheaper pricing. However, if your needs are more expansive, it might be worthwhile to shell out for a system with a higher limit or unlimited invoicing capacity.
The Number Of Users On Your Team
Invoicing platforms may also limit the number of users based on your pricing tier. If you're a solopreneur or a small business owner, you might get away with a plan allowing just one user. However, medium-sized businesses generally require plans that allow for multiple users, and enterprise-level businesses may require unlimited users.
Additional Features You May Need
The software you end up choosing ultimately depends on the individual needs of your business. If you do most of your business outside the country, you should look for a platform that works with multiple currency types. On the other hand, recurring invoices are a must for businesses that sell subscriptions, and a mobile app will come in handy if you're always on the go.
Other features, such as automatic late payments, can save you time and energy. Integrations with third-party technology may also improve your business's overall efficiency. For example, integrations with accounting software can keep your books up-to-date and error-free without any extra effort on your end. You can even take advantage of time-tracking software integrations to automatically bill your client for time spent on a project.
Excluded Billing And Invoicing Features
No single software platform contains every feature out there, and that's okay. Prioritize your must-haves, and don't worry if you fail to hit all of your nice-to-haves. It's also important to remember that not all billing and invoicing features will be helpful. Some may even prove distracting. If you sell t-shirts to brick-and-mortar retailers, you probably don't want time-tracking software integrations.
Billing And Invoicing Software FAQ
How We Chose The Best Billing And Invoicing Software
We evaluated each software program on our list according to the following factors:
- Monthly costs: Most cloud-based billing and invoicing software systems bill on a monthly subscription model. We assessed each platform according to its monthly cost in relation to its offered features.
- Range of features and tools: We chose software programs that offer a wide range of features and tools.
- Limitations: We looked at the limitations on the number of invoices sent, users, integrations, currencies, payment methods and other relevant factors.
- Invoice customizability: We favored programs that let businesses customize their invoices according to their specific needs and preferences.
- Mobile app availability: We assessed each software type based on the existence and functionality of its mobile app.
- Integration capabilities: We evaluated each program based on the quantity and quality of third-party integrations offered.
- Customer reviews: We used trusted review platforms like the BBB to assess each company based on user satisfaction.
