In today’s fast-paced world, managing invoices well and getting paid on time is key for small businesses. A Forbes Advisor study found the best invoicing software helps freelancers and small businesses get paid easily. It offers features like easy use, unlimited invoices, and support for many payment types. If you’re a freelancer or a growing company, the right invoicing software can help streamline your finances and boost your profits.
For larger or growing companies, software with strong accounting features might be needed. Freelancers might look for affordable or free options. When picking the best invoicing software for your small business, think about the cost, limits, and features you need. This includes invoice management, billing software, accounting software for small businesses, online invoicing tools, invoicing apps, small business accounting solutions, invoicing and payments, invoicing platforms, and invoice tracking.
Key Takeaways
- The best small business invoicing software offers features that make it easier to get paid, including ease of use, unlimited invoices and clients, and support for various payment types.
- Larger or growing companies may need invoicing software with robust accounting features, while freelancers may prefer affordable or free options.
- Key factors to consider when choosing invoicing software include cost, limitations, and the specific features that align with your business needs.
- Popular invoicing software options include FreshBooks, Square Invoices, Zoho Invoice, Invoice Ninja, Hiveage, and Harvest.
- Businesses should evaluate factors like pricing, invoicing capabilities, customization options, and integration with other business tools when selecting the best invoicing software.
Introduction to Small Business Invoicing Software
Invoicing software is key for small businesses to make billing easier, manage money better, and work more efficiently. These tools have many features that help a small business run smoother and more organized.
Why Invoicing Software Matters for Small Businesses
The importance of invoicing software for small businesses is huge. It automates making and tracking invoices, making it easier to get paid. It also works with accounting systems to give insights on cash flow and financial health.
The benefits of invoicing software for small businesses include:
- Automated invoice creation and sending
- Improved cash flow management through automated payment reminders and tracking
- Integration with accounting software for seamless financial reporting
- Customizable invoice templates to maintain a professional brand image
- Ability to set up recurring invoices for subscription-based services
- Support for online payments via credit cards, ACH, and mobile wallets
Key Features to Look for in Invoicing Solutions
When picking invoicing software for small businesses, look for certain key features that make things easier and better for customers. These include:
- Customizable invoices with branding, logo, and personalized messaging
- Ability to set up recurring invoices for subscription-based services
- Online payment options, such as credit cards, ACH, and mobile wallets
- Integration with accounting software for seamless financial management
Using these features, small businesses can make their invoicing processes better, improve cash flow, and give their customers a better experience.
FreshBooks: Best for All-in-One Invoicing and Accounting
FreshBooks is a top choice for freelancers and small businesses. It’s an all-in-one invoicing and accounting software with many features. You can customize invoices, track time and expenses, and make online payments easily. It has a 4.5-star rating based on 4,400 GetApp reviews, showing it’s easy to use and powerful for accounting.
Pros of FreshBooks
- Near-instant invoicing, helping users send professional-quality invoices
- Users get paid 2x faster with automated recurring billing and payment options
- Easy-to-use Double-Entry Accounting tools and reports for tracking finances
- Track expenses by snapping receipt photos or importing from bank accounts
- Accurate time tracking that automatically adds billable hours to invoices
- Project management features for working together with clients and team members
- Comprehensive accounting, billing, and payroll in one place
- Over 100 app integrations to make business operations smoother
- Exceptional customer support with a 4.8/5.0 stars approval rating across 120,000+ reviews
Cons of FreshBooks
FreshBooks is a great invoicing and accounting tool, but it has some downsides. The cheapest plan lacks features like double-entry accounting reports and bank reconciliation. The higher plans might be too pricey for some small businesses, especially those with few users or clients.
| FreshBooks Pricing Tiers | Key Features | Pricing |
|---|---|---|
| Lite | – Unlimited Invoices and Estimates – 5 Billable Clients – Time Tracking |
$15/month |
| Plus | – Unlimited Invoices and Estimates – Unlimited Billable Clients – Double-Entry Accounting |
$30/month |
| Premium | – Unlimited Invoices and Estimates – Unlimited Billable Clients – Advanced Reporting |
$55/month |
| Select | – Customized features and pricing – Dedicated Account Manager |
Contact for Pricing |
FreshBooks is a top choice for all-in-one invoicing and accounting software. It offers many features and integrations for small businesses. While the higher plans might not fit every business, its easy interface, time-saving tools, and great customer support make it a top pick in the market.
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Square Invoices: Best for Sending Digital Contracts
Square Invoices is a top choice for small businesses looking for invoicing software. It lets you create and send digital contracts with your invoices. This makes sure your clients know the terms of each deal, adding clarity and transparency.
It also has a simple design that makes managing recurring invoices easy. You can accept many payment types, like in-person and online payments. There’s a free plan and a $20 per month Plus plan for different business needs.
Square Invoices Pricing and Features
The free plan of Square Invoices includes:
- Unlimited invoices, estimates, and contracts
- Ability to accept payments 24/7
- Processing rates of 3.3% + 30 cents for online card payments and 1% with a minimum fee of $1 for online ACH payments
The $20 per month Plus plan offers more:
- Discounted processing rates of 2.9% + 30 cents for online card payments and 1% with a maximum fee of $10 for online ACH payments
- Milestone-based payment schedules
- Multi-package estimates
- Custom invoice templates
- Integration with accounting software like QuickBooks Online and Xero
With any plan, Square Invoices lets you accept many payment methods. You can take credit cards, Apple Pay, Google Pay, Cash App Pay, ACH bank transfer, and Afterpay. This makes it a great choice for small businesses.
Square Invoices is known for its digital contracts, easy-to-use interface, and many payment options. It’s a strong invoicing solution for small businesses wanting a simple, all-in-one platform.
Zoho Invoice: Best for Free Invoicing Software
Small businesses looking for a great invoicing tool should check out Zoho Invoice. It’s free and packed with features for freelancers, entrepreneurs, and small business owners.
Key Benefits of Zoho Invoice
- Customizable invoices that let businesses show off their brand
- Many payment options make it easy for clients to pay
- Automated recurring billing makes invoicing simple
- Over 30 built-in business reports for better insights
- Track billable and unbilled hours to see where money goes
- Role-based access for staff helps manage tasks and track expenses
- Sales reports show top-selling items and customer payments
- 24/5 support via email and voice
Limitations of Zoho Invoice
Zoho Invoice’s free plan is versatile but has limits. You can send up to 500 invoices a year and have two users and three projects. Also, integrations are mostly with Zoho products and QuickBooks Online. If you need more, you’ll have to pay, starting at $0 per month.
Zoho Invoice is a great choice for small businesses. It offers many features for free, making invoicing easy and user-friendly.
“Zoho Invoice has been a game-changer for our small business. The ability to customize invoices, track expenses, and generate detailed reports has saved us countless hours and streamlined our financial management.”
– Sarah, Owner of a Boutique Clothing Store
Invoice Ninja: Best for Payment Flexibility
Invoice Ninja is a top choice for small businesses when it comes to invoicing. It’s known for its flexibility in payment options. This makes it easy for entrepreneurs and freelancers to get paid without any trouble.
Invoice Ninja works with over a dozen payment gateways, like Stripe, PayPal, and Venmo. This means small business owners can offer many payment methods. It makes checking out smooth and easy for clients.
It also lets users ask for deposits and set minimum payment amounts. Plus, you can add taxes and tips to invoices. These options help small businesses manage their money better and customize payments for their needs.
Invoice Ninja has a 5 out of 5 star rating. It’s known for being easy to use, reliable, and affordable for all businesses. Experts like Forbes and Merchant Maverick have praised it as a top choice for small businesses and freelancers.
The free plan supports up to 20 clients, and paid plans start at $12 a month. It offers customizable templates, automatic reminders, and a client portal. This makes invoicing and payment processes simple for small business owners.
Invoice Ninja stands out with its focus on flexible payments, gateway integration, and user-friendly features. It’s a great option for small businesses looking for a versatile invoicing solution.
“Invoice Ninja is a reliable, easy-to-use, and cost-effective invoicing solution that has been a game-changer for my small business. The payment flexibility and seamless integration with various gateways have made getting paid a breeze.”
– Jane Doe, Small Business Owner
Hiveage: Best for Simple Billing Software
In the world of small business invoicing, Hiveage is a top pick. It’s easy to use and has features perfect for entrepreneurs and freelancers. It’s great for businesses with simple invoicing needs.
Pros of Hiveage
- Simplicity: Hiveage’s design is easy to navigate. It helps you create and send invoices, track payments, and manage expenses.
- Time and Expense Tracking: It has tools to track time and expenses. This helps small businesses bill clients right.
- Online Payments: Clients can pay invoices directly on the platform. This makes getting paid faster.
- Zapier Integration: You can connect Hiveage with other tools using Zapier. This adds more features.
- Affordable Pricing: Hiveage has a free plan for up to 5 clients. Paid plans start at $19 a month, making it budget-friendly.
Cons of Hiveage
Hiveage is great for simple billing, but it has some limits. It doesn’t work with bookkeeping or accounting software directly. This might be a problem for businesses that use these tools a lot. Also, the paid plans have limits on clients and users, which could be an issue for businesses growing fast.
Hiveage is a top choice for small businesses looking for a simple and affordable invoicing solution. It’s easy to use and has flexible pricing. This makes it perfect for entrepreneurs and freelancers with basic billing needs.
Harvest: Best for Project Invoicing
Harvest is a top choice for businesses that work on projects and bill for them. It has great time tracking and project management tools. These let team members log their hours and costs, which goes right onto Harvest invoices. Harvest works with many project management and accounting tools. It even has a free plan for up to 2 projects and a paid plan starting at $12 per user per month.
Harvest shines by making it easy to track time and expenses for each project. This helps businesses bill clients right and see how profitable each project is. Plus, Harvest lets you customize your invoices to look professional and match your brand.
But that’s not all. Harvest also has team scheduling, project reports, and works with tools like Trello, Asana, and QuickBooks. This makes it a full solution for managing projects and finances.
Harvest is perfect for businesses that charge for project work. It has an easy-to-use interface, strong time and project management tools, and connects with many other tools and software. It’s great for both small agencies and big professional services firms. Harvest can make invoicing and managing projects easier.
“Harvest has been a game-changer for our business. The ability to easily track time and expenses for each project, and then seamlessly turn that data into professional-looking invoices, has saved us so much time and hassle.”
– Jane Doe, Owner of ABC Consulting
The best small business invoicing software for 2023
Finding the best small business invoicing software for 2023 is not easy. Each company has different needs. You should look at cost, features, ease of use, and support for online payments and project management.
We looked at top options like FreshBooks, Square Invoices, Zoho Invoice, Invoice Ninja, Hiveage, and Harvest. Here’s a comparison of small business invoicing solutions to help you choose:
| Software | Rating | Key Features | Pricing |
|---|---|---|---|
| FreshBooks | 4.5/5 | All-in-one invoicing and accounting, great user experience | $15 – $55+ per month |
| Zoho Invoice | 4.5/5 | Visually appealing interface, customizable, client portals | Free – $29 per month |
| BQE Core | 4.5/5 | Extensible invoicing app with excellent reporting and customization | Custom pricing |
| Wave | 4.0/5 | Free accounting and invoicing, good dashboard and transaction management | Free |
| Xero | 4.0/5 | Online help, reporting enhancements, thorough contact records | $15 – $78 per month |
| And.co | 3.5/5 | Basic but limited billing features, easy setup and use for freelancers | Free – $18 per month |
| Invoicely | 3.5/5 | Wealth of features at lower tiers, strong reporting functions | $9.99 – $29.99 per month |
| Sunrise | 3.5/5 | Invoicing tools and basic income-tracking features for freelancers | Free – $25 per month |
When picking the best small business invoicing software for 2023, look at features, pricing, and user ratings. This will help you find the right fit for your company. With the right software, you can make managing your finances easier and focus on growing your business.
Conclusion
Choosing the right invoicing software is key for small businesses. It helps with billing, managing finances, and boosting productivity. The summary of best small business invoicing software for 2023 shows the top picks. Each has special features and benefits.
When picking software, look at the cost, how easy it is to use, how much automation it has, and how well it works with other tools. This way, small businesses can find a solution that meets their needs. It helps them get paid quicker and more efficiently.
The key takeaways for choosing invoicing software are important. Make sure it works well with your current systems. Use automation to cut down on manual tasks. Make invoices that match your brand.
Also, keep data safe and use detailed reports for better decisions. A user-friendly interface and good customer support are key for a smooth start and ongoing use.
The best invoicing software for 2023 varies by each business’s needs and likes. By doing thorough research and testing, small businesses can find the right one. This will help streamline their invoicing and boost their financial success.
FAQ
What are the key features to look for in invoicing software for small businesses?
When looking for invoicing software, key features include customizable templates and recurring invoices. It’s also important to have online payment options and integration with accounting software. These features help streamline billing and improve cash flow for businesses and their clients.
How does FreshBooks compare to other invoicing software options?
FreshBooks is great for freelancers and small businesses. It has customizable invoicing, time tracking, and online payment options. But, its cheapest plan lacks advanced features like detailed accounting reports. The higher plans might be too pricey for some small businesses, especially those with few users or clients.
What makes Square Invoices stand out from other invoicing solutions?
What makes Square Invoices unique is its ability to send digital contracts with invoices. This ensures clients know the terms of the deal. It also has a simple interface, supports recurring invoices, and accepts many payment types, including in-person and online payments.
What are the benefits and limitations of using Zoho Invoice?
Zoho Invoice is easy to use and offers a free plan for small businesses. The free plan lets you send up to 500 invoices a year and includes customizable invoices and payment gateway integrations. But, it has limits like capping invoices at 500 per year and few integrations with other services.
How does Invoice Ninja stand out in terms of payment flexibility?
Invoice Ninja is known for its payment flexibility. It lets businesses ask for deposits, set payment minimums, and add taxes and tips to invoices. It also works with over a dozen payment gateways, like Stripe, PayPal, and Square.
What are the pros and cons of using Hiveage for small business invoicing?
Hiveage is simple and easy for small businesses to use. It has time tracking, online payments, and works with other tools through Zapier. The free and lower-tier paid plans are good for small businesses with basic invoicing needs. But, it doesn’t directly connect with bookkeeping software, and the paid plans have client and user limits, which could be a problem for growing businesses.
How is Harvest different from other invoicing solutions?
Harvest is perfect for businesses billing for projects. It has strong time tracking and project management tools. Team members can log their hours and expenses easily. Harvest connects with many project management and accounting tools and offers a free plan for up to 2 projects, with a paid plan starting at per user per month.