As a business owner or manager, one of the most important aspects of running a successful business is managing your finances. Billing and invoicing are critical components of this process, yet they can be time-consuming and often prone to errors.
Inaccurate or delayed invoices can result in missed payments, damaged relationships with clients, and ultimately, a negative impact on your brand’s reputation. That’s where billing and invoicing software comes in, it can help you streamline your financial operations, reduce errors, and ultimately save you time and money.
In this blog post, we have provided seven of the best billing and invoicing software programs. We also explore the benefits of using billing and invoicing software and show you how it can be the solution to your financial management challenges.
So let’s dive in and discover how it can help you take your finances to the next level.
What is a Billing and Invoicing Software?
Billing and invoicing software is a type of business software that helps businesses manage their billing and invoicing processes. This software can automate and simplify many billing and invoicing tasks, such as making invoices, sending them to customers, and keeping track of payments.
Billing and invoicing software can also help businesses keep track of their customer records, product inventory, and sales data.
Here are a few of billing platforms and invoice software we have tested and found worthy for your businesses;
| Tool Name | Best For | Free Plan/Trial | Cheapest Plan (Monthly Plans) | Rating from users (G2/, Capterra) |
| Zoho Invoice | Small and medium business | Free Plan | Free | 4.7/4.7 |
| Square Invoice | Small businesses | Free Plan | $29 | 4.7/4.6 |
| Freshbooks | Self-employed and small businesses | none | $6.8 | 4.5/4.5 |
| Invoice Ninja | For Freelancers | Free plan | $10 | 4.5/4.8 |
| Xero | Growing Business | Free trial | $25 | 4.4/4.4 |
| Quick books Intuit | All business | Free trial | $8.50 | 4.4/4.4 |
| Paypal invoicing | Fast invoice payment | Free | Free | 4.5/4.7 |
- Zoho Invoice
Zoho invoice software is an efficient and comprehensive invoicing solution. Zoho Invoice is one of the leading online invoice generators and billing software options available in today’s world. It is an easy-to-use and cloud-based platform designed to help businesses streamline their invoicing, billing, and payment processes.
With Zoho Invoice, users can also create and send professional invoices to their customers, receive payments online, manage their finances, and lots more. Zoho Books is also an indirect way to make use of Zoho Invoice.
Key Features of Zoho Invoice
- Invoice Customization
- Automated Reminders
- Multi-Currency Support
- Real-Time Invoice Tracking
- In-built Customer Portal
Pros
- Free plan
- Easy to use: Zoho Invoice is easy to set up and use, even for those with no technical experience
- Flexibility: Zoho Invoice is highly customizable with 1,000 customizable invoices per year which can be tailored to fit the needs of any business
- Automation: Zoho Invoice’s automated reminders save you time and help ensure timely payments
- Estimate conversion: With zoho, once you get your client’s approval of an estimate, you can convert it into an invoice without having to re-type the information
- Tracking: Zoho Invoice allows you to log and track time spent on tasks, create a project, invite staff, and assign tasks. That’s a unique project management feature that your business needs.
- Multiple payment gateways
Cons
- Limited features: Zoho Invoice lacks some features such as automated accounts receivable, third-party integrations and limited invoice customization
- Available for maximum of five clients
- A single user per account
- No inventory management
- Limited customer support: Zoho Invoice’s customer support is limited to email and live chat.
Pricing
- Free plan
- FreshBooks
FreshBooks is the perfect solution for small business owners. With its easy-to-use interface, FreshBooks is a complete accounting solution that even people who don’t know much about accounting can use.
It has a wide range of features, including invoicing, time tracking, expense tracking, client management, and more. It also seamlessly integrates with other software solutions, making it easy to sync your data with your other business tools.
Key Features
Here are some of the key features of FreshBooks:
- Invoicing
- Mileage Tracking
- Expense and Receipts
- Client Management
- Automated payment options, including PayPal, Authorize.net, and Stripe
Pros
- Free trial is offered
- Accept online payments such as PayPal
- Creates unlimited invoices
- Every package includes a customer portal
- Simple to use
- Customize pricing plan option
Cons
- No free Plan
- Branding for FreshBooks on most plans
- Certain features are premium extras.
- Unlimited customers available only on premium subscriptions
Pricing
- Lite Plan: For professionals with basic needs, the price starts at $6.8 per month for 5 billable clients with features such as unlimited invoices to up to 5 clients, tracking unlimited expenses, Send unlimited estimates, and Access anywhere on iOS and Android
- Plus Plan: This plan is available for owners looking for more automation and insights. The price starts at $12 for 50 billable clients. Top features include sending unlimited invoices to up to 50 clients and automatic expense management
- Premium Plan: a plan for growing businesses that want to give more power to employees. It is an unlimited billable client at a price of $22. Top features include sending unlimited invoices to an unlimited number of clients, monitor bills, track project profitability, customizing invoice templates with dynamic fields and customize email signatures.
- Square Invoices
Square Invoices is a powerful and user-friendly billing and invoice software designed to help businesses of all sizes create and send professional invoices. It offers a wide range of features that make it easy to manage invoices, payments, customers, and more.
With Square Invoices, businesses can easily save time and money while providing their customers with an exceptional billing experience.
Key Features
Some of the key features of Square Invoices include:
- Customizable Invoice Templates
- Invoice Scheduling
- Automatic Payment Reminders
- Customer Records
- Online Payment Processing
- Tax Calculation
Pros
- Free plan available
- Unlimited invoicing
- Unlimited clients
- Accept most types of payments as well as credit cards
- Integrates with inventory, time-tracking software
- Includes client portal
Cons
- Features like customization, automation, and project tracking are only available on paid plan
- Square invoices software is not suitable for businesses that need more sophisticated invoicing and billing features
Pricing
- Free plan
- Plus Plan: This plan prices at $29 per month with features like retail report and inventory tools, automated appointment reminder and customizable online booking sites.
- Premium Plan: This is available based on eligibility, so it allows you to create a custom plan that takes into account the intricacy of your business.
- Xero
Xero Invoices is an online billing and invoicing tool that streamlines the entire invoicing process, making it easy and efficient to manage invoices and payments. With Xero Invoices, you can create, process, and track invoices from start to finish while also saving time and effort.
Key Features
Xero Invoices offers a range of useful features to make invoicing easier and more efficient. These include:
• Automated invoicing
• Customized invoices
• Payment reminders
• Real-time tracking
• Recurring invoice basis
• Tax and VAT calculation
Pros
- Free trial available
- Payment processor choices
- Accounting features on all plans
- Project tracking on top-tier plan
- Lots of integrations
Cons
- No free plan
- Limits on low-cost plan
- Difficulty for non-tech users – Xero Invoices may be difficult for non-tech users to use and understand.
Pricing
Xero Invoices offers three different pricing plans to meet the needs of businesses of all sizes. The plans include:
- Starter – starting price at $25 monthly, the plan is for sole traders, new businesses, and the self-employed.
- Standard – The standard plan is $40/month, good for growing businesses.
- Premium – The premium plan is $54/month for businesses of all sizes. This plan accepts multiple currencies and bulk reconcile transactions.
- Intuit Quickbooks
QuickBooks Invoices is one of the most popular online invoicing software solutions available today. It is a simple and powerful tool that can help you manage your invoices, track payments, and generate reports. QuickBooks Invoices is an all-in-one system that offers features like recurring invoices, automatic billing, invoice reminders, and more.
Key Features
Here are some of the key features of QuickBooks invoicing and billing software:
- Capture and organize receipts
- Automated billing and payment reminders
- Insights and reports
- Multicurrency supports
- Mobile app
- Bank Feeds
- Invoicing
- Tax Calculation and Filing
Pros
- A 30 day free trial on all plans
- Customizable, unlimited invoices
- Accept all payment types
- Tax features
- Time-tracking tool
- Data security: Bank-level security makes sure that only you and the people you want to share it with have access to your data
Cons
- No free plan
- The primary downside to QuickBooks invoices is that it can be a bit pricey. The software is not cheap and the cost can be unaffordable for some businesses
- The software may require a bit of a learning curve, as it can be a bit complex and feature-rich
Pricing
- Simple Starter Plan: at $8.50 per month for starting a business. It’s available for just one user
- Essentials plan: $13 per month for running business available for three users plus an accountant as extra user
- Plus plan: $18 per month for growth of business available for five users plus one accountant as extra user
- All plans come with a 30-day free trial
- Invoice Ninja
Invoice Ninja is billing and invoicing software that runs in the cloud. It helps small businesses and freelancers speed up the process of billing and getting paid. Invoice Ninja is a powerful tool for managing invoices, estimates, payments, expenses, and time tracking. It has an easy-to-use interface and a full set of features.
Key Features
Invoice Ninja offers a range of features to help businesses streamline their invoicing and billing processes. These features include:
- Create & Email Invoices & Quotes in Real-Time
- Online Payment Gateways
- Track Inventory Levels
- Recurring Invoicing & Subscription Billing of Clients
- Approved Quotes Auto-Convert to Payable Invoices
- Item & Product Library System
- Bulk Emailing Invoices & Quotations
- Kanban Boards to Manage Projects
- Live PDF Invoice Preview
Pros
- Easy to Use: Invoice Ninja is very user-friendly and easy to use. It’s also highly customizable, so businesses can tailor the look and feel of their invoices to their brand.
- Secure: Invoice Ninja is a secure platform, with end-to-end encryption and two-factor authentication
- Cost-effective: Invoice Ninja is a very cost-effective solution for small businesses.
- Flexibility and customization options: Users can customize the software to suit their specific needs, such as adding their own logo and branding to invoices, creating custom fields, and setting up automated workflows
- Available as an open-source software: users can access and modify the source code to add new features or integrate with other applications
Cons
- Advanced features such as project management tools and time tracking, may require a bit of a learning curve for users who are not familiar with these concepts
- While Invoice Ninja offers a free plan, some of the more advanced features are only available with the paid plans
- Limited Reporting: Invoice Ninja doesn’t offer extensive reporting features
Pricing
- Free
- Ninja Pro: Priced at $10 per month with unlimited client invoicing, API Integration with 3rd Party Apps and lot more
- Enterprise: Starting price at $140 per month for one to two users. Comes with pro features such as Additional Account Users (up to 20) and fully branded client portal
- PayPal Invoicing
PayPal invoicing is another online billing and invoicing software that allows businesses to create and send professional invoices to their clients. It’s a simple and secure way to manage payments, track invoices, and get paid faster. PayPal invoicing offers a wide range of features that make billing and invoicing easy and efficient for businesses of all sizes.
Key Features
- Customizable Invoices
- Multiple Payment Options
- Automatic Reminders
- Recurring Invoices
- Reports and Analytics
Pros
- Easy to Use: PayPal invoicing is simple and easy to use, even for those who are not tech-savvy
- Security: PayPal invoicing is a secure way to manage payments and protect your business and clients’ financial metric information
- Integrations: PayPal invoicing integrates with various accounting and bookkeeping software such as QuickBooks, Xero, and Wave
- Fast Payments: PayPal invoicing enables fast payments, which can improve your cash flow and help you get paid faster
- Free: There is no monthly fee to use PayPal invoicing. You only pay a small transaction fee when you get paid
Cons
- Limited Customization: While PayPal invoicing allows for some customization, it may not be enough for some businesses that require more advanced customization options
- Transaction Fees: PayPal invoicing charges a transaction fee of 2.9% + $0.30 for each payment received, which may add up over time
Pricing
PayPal invoicing is free to use, and there is no monthly subscription fee. The only cost is a transaction fee of 2.9% plus $0.30 for each payment received. However, if you use PayPal invoicing with other PayPal products, such as PayPal Here or PayPal Business, additional fees may apply.
Benefits of Using a Billing and Invoicing Software in Your Business
Businesses can get a lot of benefits from using billing and invoicing software, such as:
- Time Savings: Billing and invoicing software automates the invoicing process, which saves time that would otherwise be spent manually creating and sending invoices
- Increased Efficiency: With billing and invoicing software, businesses can easily manage their billing and invoicing process, reducing the risk of errors and improving efficiency
- Improved Cash Flow: Billing and invoicing software allows businesses to quickly and easily invoice their clients, which can improve cash flow by reducing the time it takes to get paid
- Reduced Costs: Using billing and invoicing software can reduce the costs associated with paper-based invoicing such as printing and mailing costs
- Improved Customer Experience: Billing and invoicing software can improve the customer experience by providing professional and easy-to-understand invoices, making it easier for customers to pay their bills
- Enhanced Reporting: Billing and invoicing software can provide detailed reports and analytics, making it easier for businesses to track their billing and invoicing history and identify areas for improvement
- Increased Security: Billing and invoicing software provides a secure way to manage financial transactions, reducing the risk of fraud and ensuring that sensitive financial information is protected
Features to Look Out For While Selecting Billing and Invoicing Software
When selecting billing and invoicing software or invoice apps for your business, there are several key features to look for. Here are some of the most important features to consider:
- Customization: Look for software that allows you to customize your invoices with your company logo, colors, and fonts
- Process Payment: Make sure the software supports multiple payment options such as credit or debit cards, PayPal, bank transfer, etc
- Automatic Invoicing: The software should allow you to set up automatic invoicing for recurring clients and automate the billing process
- Reminder System: The software should have a reminder system to tip clients on overdue invoices and late payment reminders
- Reporting and Analytics: The software should provide detailed financial reports and analytics to track your billing and invoicing history
- Integration: Look for software that integrates with other bookkeeping and accounting software, such as QuickBooks, Xero, and Wave
- Security: Ensure that the software provides adequate security features, such as encryption and two-factor authentication
- Mobile Compatibility: Consider software that is compatible with mobile devices, or has a mobile app, allowing you to create, send and manage invoices on-the-go
- Customer Support: The software provider should have a reliable customer support team that is easily accessible and responsive to any issues you may encounter
Frequently Asked Questions
Billing and invoicing software can benefit businesses of all sizes and types, including freelancers, small businesses, and large enterprises. It can help streamline the billing process, improve cash flow, and reduce errors and administrative tasks of all businesses.
Yes, billing and invoicing software can help businesses get paid faster by automating the invoicing process, sending automatic payment reminders, and providing multiple payment options. This can help reduce the time it takes for clients to pay their bills and improve cash flow.
Cloud-based billing and invoicing software gives you access from anywhere with an internet connection, automatic updates, backup and security for your data, and the ability to work with team members remotely.
Yes, encryption and other security measures are used by most billing and invoicing software to protect sensitive financial information. But businesses should still take precautions like using strong passwords and checking their bank accounts regularly.
Conclusion
There is no justification for not using software to manage your bills and invoicing. The choices on this list barely begin to scratch the surface of what’s in store for you. The possible benefits of keeping a physical record of your business’s transactions are much greater than the risks.
Maintaining your business operations depends on the effective administration of invoices and invoicing. If you don’t, you could have to close your company and run the risk of getting into legal difficulties.
There is no need to take such a significant risk; instead, take advantage of the billing and invoicing features of Zoho, Freshbooks, Invoice Ninja, Xero and others.
These programs will not only work for you, but also assist you in maintaining timely and complete payment of your bills.
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