Best Invoicing Software for Small Business (Free and Paid)

You’re still making invoices in Word or Excel, copying the last one, changing the number and hoping you didn’t forget to update the date. Then you have to chase payments by email. Dedicated invoicing software fixes that: it numbers invoices for you, sends reminders, accepts online payments and shows who still owes you money. Here are the best invoicing software options for small businesses, including several free ones.

What good invoicing software should do

• Professional templates with your logo and business details.
• Automatic numbering and dates, so there are no duplicates or gaps.
• Online payments by card or bank transfer, straight from the invoice.
• Automatic reminders for late payments.
• Recurring invoices for clients you bill every month.
• Taxes that match your country’s rules (sales tax, VAT, GST).
• Reports on what’s paid, overdue and expected.

Pricing and free plans change often and vary by country, so confirm details on each official website before signing up. Payment processing fees usually apply when clients pay by card, even with free software.

The best invoicing software for small businesses

1. Zoho Invoice

Best free option for most small businesses.

Zoho Invoice is free and covers the essentials well: customizable templates, recurring invoices, reminders, a client portal, time tracking for billable hours and multi-currency support. If you outgrow it, it connects with Zoho Books for full accounting.

• Pros: free, feature-rich, available in many countries.
• Cons: the Zoho ecosystem has a lot of menus to learn.

2. Wave

Best for very small businesses that want invoicing and basic bookkeeping together.

Wave combines invoicing with simple accounting tools aimed at freelancers and small businesses. It’s mainly designed for the US and Canada, so check availability where you are.

• Pros: invoicing and bookkeeping in one place, simple design.
• Cons: best features are tied to the US and Canada; some extras require a paid plan.

3. Invoice Ninja

Best for businesses that want control or self-hosting.

Invoice Ninja is open source. You can use its hosted service or install it on your own server. It supports quotes, invoices, recurring billing, client portals and many payment gateways.

• Pros: flexible, open source, self-hosting option.
• Cons: self-hosting needs technical skills; the hosted free plan has limits.

4. Square Invoices

Best for businesses already using Square for card payments.

If you sell in person with Square, its invoicing tool keeps everything in one dashboard. Invoices and estimates are easy to send, and clients pay online.

• Pros: simple, integrated with Square’s payment tools.
• Cons: available only in countries where Square operates; advanced features cost extra.

5. QuickBooks Online

Best paid option when you also need full accounting.

QuickBooks Online is widely used by small businesses and accountants. Invoicing is part of a complete accounting system with bank connections, expense tracking and tax reports.

• Pros: very complete, many accountants know it.
• Cons: monthly subscription, more than you need if you only send invoices.

6. FreshBooks

Best paid option for service businesses and freelancers.

FreshBooks focuses on ease of use, with polished invoices, time tracking, project billing and expense tracking.

• Pros: friendly design, good client experience.
• Cons: paid plans, with limits on the number of clients in lower tiers.

How to choose the right one

• Just starting and want free: Zoho Invoice, or Wave if you’re in the US or Canada.
• Need full accounting and work with an accountant: QuickBooks Online.
• Bill by the hour as a freelancer: FreshBooks or Zoho Invoice with time tracking.
• Sell in person with Square: Square Invoices.
• Want to host it yourself: Invoice Ninja.

If you’re also looking for full bookkeeping, see our guide to the best accounting software for freelancers. For businesses that sell physical products, pair invoicing with one of the best inventory software tools for small businesses.

Tips to get paid faster

1. Send invoices right away when the job is done, not at the end of the month.
2. Set clear payment terms (for example, due in 15 days) and show the due date at the top.
3. Offer online payment. A “Pay now” button gets paid faster than bank details in a PDF.
4. Turn on automatic reminders before and after the due date.
5. Itemize the work, so clients don’t have to email you with questions before paying.
6. Check local rules. Some countries require specific invoice fields or electronic invoicing through a tax authority system. Ask your accountant what applies to you.

FAQ

Is there completely free invoicing software?

Yes. Zoho Invoice is free, and Wave offers free invoicing in supported countries. Card and bank payment processing fees usually still apply when clients pay online.

Can I just use Excel or Word templates for invoices?

You can, and it’s fine for a handful of invoices. As you grow, templates make it easy to make numbering mistakes and hard to track who has paid. Invoicing software automates those parts.

Does invoicing software handle taxes?

Most let you add tax rates to items and include tax totals on invoices. They don’t replace professional tax advice, especially if your country requires electronic invoicing or special formats.

What’s the difference between invoicing and accounting software?

Invoicing software focuses on billing clients and tracking payments. Accounting software adds expenses, bank reconciliation, financial reports and tax preparation. Many tools offer both.