# The 11 Best Invoicing & Billing Software for Small Business

> The best invoicing and billing software for most small businesses is FreshBooks, followed by QuickBooks Online for those needing a full accounting suite and Zoho Invoice for its powerful free tier.

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- Last verified: 2026-06-20
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## Ranking

### #1 FreshBooks · 9.3/9.4
- Best for: Service-based small businesses, consultants, and freelancers who need an exceptionally easy-to-use tool for invoicing, time tracking, and expense management.
- Toronto, Canada · founded 2003 · $$ ($19 to $60/mo)
- FreshBooks is the best overall invoicing software because its interface is the most intuitive on the market, allowing business owners to create and track professional invoices in under 60 seconds.
- Pro: Its time-tracking feature is seamlessly integrated, allowing users to add billable hours directly to an invoice with a single click, reducing billing errors.
- Con: The entry-level 'Lite' plan, at $19/month, limits you to invoicing only 5 clients, which is restrictive for many growing freelancers.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #2 QuickBooks Online · 9.1/9.4
- Best for: Small to medium-sized businesses that need a complete accounting solution where invoicing is a core, but not the only, function.
- Mountain View, USA · founded 1983 · $$$ ($30 to $200/mo)
- QuickBooks Online ranks this high because it offers the most powerful combination of invoicing and full-featured accounting, making it the default choice for businesses that plan to scale.
- Pro: Its reporting capabilities are unmatched in this category, providing over 80 types of detailed financial reports that other tools cannot match.
- Con: The user interface is less intuitive than FreshBooks, with a steeper learning curve that can be intimidating for owners without an accounting background.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #3 Zoho Invoice · 8.9/9.4
- Best for: Freelancers and small businesses looking for a powerful, completely free invoicing solution or those already invested in the Zoho business software ecosystem.
- Chennai, India · founded 1996 · $ ($0)
- Zoho Invoice earns its spot with the most feature-rich free plan available, offering unlimited invoices for up to 5 clients, which is unmatched by competitors.
- Pro: The platform is available in over 15 languages and supports multiple currencies, making it an excellent free option for international freelancers.
- Con: While it integrates perfectly with other Zoho apps, its connections to third-party software outside that ecosystem are less extensive than FreshBooks or QuickBooks.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #4 Wave · 8.6/9.4
- Best for: Sole proprietors, freelancers, and micro-businesses who need genuinely free invoicing and accounting and are willing to pay standard fees for payment processing.
- Toronto, Canada · founded 2010 · $ ($0)
- Wave is the best option for businesses on a strict budget because its core invoicing and accounting software is 100% free, with no limits on invoices, clients, or users.
- Pro: Unlike other free plans, Wave includes free bank reconciliation and unlimited income and expense tracking, providing remarkable value.
- Con: It lacks time tracking features and has very few third-party integrations, making it less suitable for service businesses that bill by the hour or need to connect other tools.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #5 Xero · 8.4/9.4
- Best for: Growing small businesses, especially those outside the US, that need a strong QuickBooks alternative with excellent invoicing and a vast app marketplace.
- Wellington, New Zealand · founded 2006 · $$ ($15 to $78/mo)
- Xero is a top-tier choice for businesses seeking a sophisticated yet user-friendly accounting platform, offering unlimited users on all plans, a key differentiator from QuickBooks.
- Pro: Its ecosystem of over 1,000 connected apps provides specialized functionality for dozens of industries, from retail to construction.
- Con: The entry-level 'Early' plan is very limited, allowing you to send only 20 invoices and enter 5 bills per month, forcing upgrades quickly.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #6 Square Invoices · 8.2/9.4
- Best for: Businesses already using the Square ecosystem for point-of-sale or online payments who want a simple, integrated invoicing tool.
- San Francisco, USA · founded 2009 · $ ($0 with processing fees)
- Square Invoices is the most convenient option for existing Square users, as it centralizes all payments, whether in-person, online, or via invoice, into a single dashboard.
- Pro: Its mobile app is excellent, allowing users to create and send an invoice from their phone in just a few taps, which is ideal for field service professionals.
- Con: As a standalone product, it's very basic, lacking the time tracking, expense management, and detailed reporting of dedicated invoicing platforms.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #7 Invoice Ninja · 8/9.4
- Best for: Tech-savvy freelancers and businesses that want a highly customizable, open-source invoicing solution with the option for self-hosting.
- Remote · founded 2014 · $ ($0 to $14/mo)
- Invoice Ninja is the best open-source invoicing platform, giving users complete control over their data and system by allowing them to host it on their own servers.
- Pro: It supports over 45 payment gateways, far more than most competitors, providing maximum flexibility for accepting payments globally.
- Con: The user interface is less polished and more utilitarian than top-ranked competitors, and the self-hosting option requires technical expertise to set up and maintain.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #8 Harvest · 7.9/9.4
- Best for: Agencies, consultants, and teams that bill clients by the hour and need best-in-class time tracking that flows directly into invoices.
- New York, USA · founded 2006 · $$ ($12/user/mo)
- Harvest excels because it is fundamentally a time tracking tool first, making it superior for any business whose primary challenge is accurately logging and billing for employee or project hours.
- Pro: Its integrations with project management tools like Asana, Trello, and Jira are exceptionally well-executed, allowing teams to track time without leaving their workflow.
- Con: The invoicing features are not as advanced as dedicated platforms; it lacks complex recurring billing options and detailed invoice customization.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #9 PayPal Invoicing · 7.6/9.4
- Best for: Freelancers and small businesses that conduct most of their transactions through PayPal and need a fast, familiar way to send simple invoices.
- San Jose, USA · founded 1998 · $ ($0 with processing fees)
- PayPal Invoicing is a convenient and widely trusted option for businesses already operating within the PayPal ecosystem, allowing clients to pay with a familiar and secure method.
- Pro: Creating and sending an invoice is extremely fast, and since most clients have a PayPal account, the payment experience is often frictionless.
- Con: The feature set is very basic, with no time tracking, project management, or integrations with accounting software beyond manual data export.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #10 Bonsai · 7.4/9.4
- Best for: Freelancers who need an all-in-one platform to manage their entire client lifecycle, from proposals and contracts to invoicing and taxes.
- San Francisco, USA · founded 2016 · $$ ($24 to $79/mo)
- Bonsai provides the best integrated workflow for freelancers by combining legally-vetted contract templates, project management, and invoicing in a single, cohesive package.
- Pro: Its workflow automation is a key strength, automatically generating an invoice from a signed proposal and contract, saving significant administrative time.
- Con: It is more expensive than many standalone invoicing tools, and its feature set may be excessive for freelancers who only need basic billing functionality.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

### #11 [WILDCARD] Stripe Invoicing · 7.1/9.4
- Best for: Online businesses and SaaS companies already using Stripe for payment processing that need a powerful, developer-friendly way to handle billing and subscriptions.
- San Francisco, USA · founded 2010 · $ (0.4% to 0.5% per paid invoice)
- Stripe Invoicing is a wildcard because it's not a traditional small business app but a powerful infrastructure tool; it's the best choice for tech-enabled businesses that want to programmatically create and manage invoices via an API.
- Pro: Its ability to handle complex billing logic, such as metered usage and tiered pricing for subscriptions, is far beyond what typical invoicing software can do.
- Con: It lacks a user-friendly, standalone interface for non-developers and is missing features like time tracking and expense management common in other tools.
- Risk signals (none, checked 2026-06-20): No material public risk signals as of 2026-06-20.

## FAQ

**What is the best free invoicing software for small business?**

Wave is the best completely free invoicing and accounting software, offering unlimited invoices and clients with no monthly fees. Zoho Invoice also provides a very generous free plan that allows for up to 5 clients and includes features like recurring invoices and payment reminders.

**Can I create invoices in Word or Excel?**

Yes, you can create invoices using templates in Word or Excel, but it's not recommended. These manual methods lack automated tracking, online payment options, and recurring billing, which costs you significant time and increases the risk of errors and late payments. Dedicated software automates these processes for a few dollars a month.

**How much does invoicing software typically cost?**

Invoicing software for small businesses typically costs between $15 and $60 per month. Pricing is often tiered based on the number of clients you can bill, the number of users on your account, and access to advanced features like project management or detailed reporting.

**What key features should I look for in billing software?**

The most important features are customizable invoice templates, online payment gateway integrations (Stripe, PayPal), automated late payment reminders, recurring billing for retainers, and basic reporting on accounts receivable. Time tracking and expense management are also critical for service-based businesses.