Article
Best Invoicing Software in 2026
Get paid faster with professional invoicing software. Our experts tested features, pricing, and ease of use to find the best invoicing solutions for freelancers and small businesses.
Getting paid on time is critical for business cash flow, yet many small businesses still struggle with manual invoicing. The right invoicing software creates professional invoices in minutes, automates payment reminders, and integrates with payment processing to get you paid faster.
Our team spent over 120 hours testing the leading invoicing platforms, evaluating ease of use, features, pricing, and payment processing capabilities. Here are the best invoicing software solutions for 2026.
Quick Comparison
| Software | Best For | Price | Rating |
|---|---|---|---|
| 1. FreshBooks | Best Overall for Service Businesses | $21/month | ★4.8/5 |
| 2. QuickBooks Online | Best for Full Accounting Features | $38/month | ★4.7/5 |
| 3. Wave | Best Free Invoicing Software | $0/month | ★4.6/5 |
| 4. Zoho Invoice | Best Value with Automation | $0 (Free forever) | ★4.6/5 |
| 5. Square Invoices | Best for Retail & Contractors | $0/month | ★4.5/5 |
| 6. Xero | Best for Growing Teams | $15/month | ★4.5/5 |
| 7. PayPal Invoicing | Best for International Payments | $0/month | ★4.3/5 |
| 8. Sage Accounting | Best for Advanced Reporting | $10/month | ★4.4/5 |
| 9. Bill.com | Best for Accounts Payable Management | $79/user/month | ★4.3/5 |
| 10. Melio | Best for Bill Payment Flexibility | $0/month | ★4.2/5 |
Our Top Picks in Detail
FreshBooks
FreshBooks excels for freelancers and service-based businesses who bill by the hour. Its seamless time tracking integration with invoicing, combined with exceptional ease of use and 24/7 support, makes it the best choice for professionals who want to spend less time on admin and more time getting paid.
Pros
- ✓Exceptional ease of use for non-accountants
- ✓Outstanding time tracking and billable hours
- ✓24/7 customer support via chat and phone
- ✓Professional invoicing with auto-reminders
- ✓Seamless integration with payment processing
Cons
- ✗Client caps on lower-tier plans
- ✗Additional users cost $11/month each
- ✗Not ideal for inventory-based businesses
QuickBooks Online
QuickBooks Online combines powerful invoicing with full accounting features, making it ideal for businesses that need more than just billing. While pricier and more complex than standalone invoicing tools, its comprehensive features and integration with accountants justify the cost for growing businesses.
Pros
- ✓Most comprehensive accounting ecosystem
- ✓Excellent inventory management built-in
- ✓Seamless integration with TurboTax
- ✓Robust reporting and financial analysis
- ✓Scalable from freelancer to 100+ employees
Cons
- ✗Higher price point than competitors
- ✗Steeper learning curve for beginners
- ✗Recent price increases for existing users
Wave
Wave offers genuinely free invoicing software with no time limits, user caps, or hidden fees. While it lacks the advanced features and integrations of paid competitors, it's perfect for freelancers, solopreneurs, and small businesses under $100K revenue who need reliable invoicing without the monthly cost.
Pros
- ✓Completely free invoicing and accounting
- ✓Unlimited invoices with no restrictions
- ✓Professional templates with customization
- ✓No forced upgrades or hidden fees
- ✓Integrated with free accounting features
Cons
- ✗Payment processing fees at 2.9% + $0.60
- ✗Limited integrations compared to paid tools
- ✗Email support only (no phone support)
Zoho Invoice
Zoho Invoice delivers exceptional value with a genuinely free plan that includes unlimited invoices for up to 1,000 customers. Its automation features and seamless integration with the Zoho ecosystem (CRM, Projects, Books) make it ideal for businesses already using Zoho products or those wanting room to grow without upgrading.
Pros
- ✓Free forever for up to 1,000 customers
- ✓Powerful automation features
- ✓Seamless integration with Zoho ecosystem
- ✓Multi-currency and multi-language support
- ✓Excellent time tracking and expense management
Cons
- ✗Interface less polished than competitors
- ✗Best value requires using other Zoho products
- ✗Mobile app could be more intuitive
Square Invoices
Square Invoices is perfect for retailers, contractors, and service providers who need invoicing integrated with point-of-sale systems. While you pay transaction fees (2.9% + $0.30), there's no monthly subscription, and the tight integration with Square's payment ecosystem makes it ideal for businesses that take payments both online and in-person.
Pros
- ✓Free unlimited invoicing with no monthly fee
- ✓Seamless integration with Square POS
- ✓Contactless QR code payments
- ✓Same-day bank deposits available
- ✓Perfect for businesses with in-person sales
Cons
- ✗Payment processing required (2.9% + $0.30)
- ✗Limited accounting features
- ✗Fewer customization options than dedicated tools
Xero
Xero combines invoicing with full accounting features at an excellent price point, especially for teams. Its unlimited user access (no per-seat fees) and beautiful interface make it ideal for growing businesses that need team collaboration, though the $15/month Early plan's 20-invoice limit pushes most users to the $37 Growing plan.
Pros
- ✓Unlimited users at no extra cost
- ✓Beautiful, intuitive interface
- ✓Strong inventory and project tracking
- ✓Real-time collaboration with accountants
- ✓Excellent value at $15-37/month
Cons
- ✗Entry plan limited to 20 invoices/month
- ✗Customer support only via email
- ✗More expensive than free alternatives
PayPal Invoicing
PayPal Invoicing is a free, no-frills solution for businesses that already use PayPal for payments. While it lacks advanced features like time tracking and expenses, its familiar interface and global payment acceptance make it suitable for freelancers and small businesses with international clients who prefer PayPal.
Pros
- ✓Completely free invoicing tool
- ✓Familiar PayPal payment processing
- ✓Built-in payment tracking
- ✓Customers can pay without PayPal account
- ✓Mobile app for invoicing on the go
Cons
- ✗Higher transaction fees (3.49% + fixed)
- ✗Very basic features compared to competitors
- ✗International transaction fees can be high
Sage Accounting
Sage Accounting brings enterprise-level reporting to small business invoicing. While it requires purchasing the full accounting package rather than standalone invoicing, its advanced financial analysis and forecasting features appeal to businesses that need detailed insights. The interface feels less modern than newer competitors.
Pros
- ✓Excellent reporting and analytics
- ✓Strong cash flow forecasting
- ✓Affordable entry price at $10/month
- ✓Trusted brand with decades of experience
- ✓Good for professional service firms
Cons
- ✗Less intuitive interface than competitors
- ✗Customer support inconsistencies
- ✗Not available as standalone invoicing
Bill.com
Bill.com is an enterprise-grade financial operations platform that includes invoicing as part of a comprehensive AP/AR solution. At $79/user/month, it's expensive for small businesses but justified for mid-size companies that need approval workflows, ERP integration, and sophisticated payment management across multiple entities.
Pros
- ✓Powerful accounts payable automation
- ✓Multi-level approval workflows
- ✓Strong integration with major ERPs
- ✓International payment capabilities
- ✓Excellent for mid-size to large businesses
Cons
- ✗Expensive at $79/user/month minimum
- ✗Overkill for simple invoicing needs
- ✗Additional fees for ACH, checks, wires
Melio
Melio is primarily a bill payment platform rather than invoicing software, but it excels at helping businesses manage cash flow by paying vendors with credit cards even when they only accept checks. Free to use with transaction-based fees, it's ideal for small businesses that want flexible payment options integrated with accounting software.
Pros
- ✓Free platform with flexible payment options
- ✓Pay by card even if vendor accepts checks
- ✓Extend cash flow by 30-60 days with card
- ✓Easy QuickBooks and Xero integration
- ✓Mobile app for iOS and Android
Cons
- ✗Transaction fees for checks and cards
- ✗Best for paying bills, not invoicing customers
- ✗Limited for businesses outside US
How We Evaluate Invoicing Software
Our comprehensive invoicing software testing process examines every aspect of the billing experience:
Core Invoicing Features
We evaluate essential capabilities:
- Invoice creation: Template customization, branding, line items
- Professional appearance: Logo upload, color schemes, formatting
- Recurring invoices: Automated billing for subscriptions and retainers
- Payment reminders: Automatic follow-ups for overdue invoices
- Estimates and quotes: Converting estimates to invoices
- Multi-currency support: International billing capabilities
Payment Processing
We test payment acceptance:
- Payment methods: Credit cards, ACH, PayPal, Apple Pay, Google Pay
- Transaction fees: Processing costs and monthly minimums
- Deposit speed: How quickly funds reach your bank account
- Payment links: One-click payment from invoices
- Partial payments: Accepting deposits and installments
Time and Expense Tracking
We analyze billable work features:
- Time tracking: Built-in timers, manual entry, mobile apps
- Expense management: Receipt scanning, categorization
- Billable vs. non-billable: Separating client and internal work
- Project tracking: Organizing work by client or project
- Integration: Syncing time directly to invoices
Automation and Workflow
We evaluate efficiency features:
- Recurring billing: Set-and-forget subscriptions
- Auto-reminders: Smart follow-ups for unpaid invoices
- Late fees: Automatic penalty calculations
- Thank you emails: Post-payment automation
- Client portals: Self-service invoice viewing and payment
Integrations and Ecosystem
We test connectivity:
- Accounting software: QuickBooks, Xero, Sage integration
- Payment processors: Stripe, PayPal, Square compatibility
- CRM systems: Contact and deal synchronization
- Project management: Time tracking integration
- Banking: Bank feed connectivity
Reporting and Analytics
We assess financial insights:
- Aging reports: Outstanding invoice tracking
- Revenue analytics: Income trends and forecasting
- Client reports: Top customers and payment behavior
- Tax reports: Sales tax and 1099 preparation
- Export options: CSV, PDF, Excel compatibility
Understanding Invoicing Software Costs
Subscription Models
- Free plans: Wave, Zoho Invoice, Square (transaction fees apply)
- Low-cost: FreshBooks Lite ($21/month), Xero Early ($15/month)
- Mid-tier: QuickBooks Simple Start ($38/month), FreshBooks Plus ($38/month)
- Enterprise: Bill.com ($79+/user), Xero Established ($73/month)
Transaction Fees
Even free invoicing software charges payment processing fees:
- Credit cards: 2.9% + $0.25-0.60 per transaction (industry standard)
- ACH/Bank transfer: 1% ($10 max) or flat $0.50-1.00
- International: 3.9-4.9% plus currency conversion fees
- In-person: 2.6% + $0.10 for card-present transactions
Hidden Costs
Watch out for additional fees:
- Additional users: $10-15 per user per month
- Payment processing: 2-4% on top of subscription
- Client limits: Upgrading plans when you exceed caps
- Advanced features: Add-ons for time tracking, projects, etc.
Choosing the Right Invoicing Software
Consider these factors when making your decision:
By Business Type
- Freelancers & consultants: FreshBooks, Wave, Zoho Invoice
- Service businesses: FreshBooks, QuickBooks, Xero
- Retail & contractors: Square Invoices, QuickBooks
- Agencies: FreshBooks Plus, Xero, Bill.com
- International: PayPal, Zoho Invoice (multi-currency)
By Budget
- Free options: Wave, Zoho Invoice, Square, PayPal
- Best value: FreshBooks ($21/month), Xero ($15/month)
- Full accounting: QuickBooks ($38/month), Xero ($37/month)
- Enterprise: Bill.com ($79+/month)
By Primary Need
- Time tracking: FreshBooks, Zoho Invoice
- Team collaboration: Xero (unlimited users)
- Full accounting: QuickBooks, Xero, Sage
- Simplicity: Wave, Square, PayPal
- Automation: Zoho Invoice, Bill.com
By Integration Requirements
- QuickBooks ecosystem: FreshBooks, Bill.com
- Xero ecosystem: Zoho Invoice, Melio
- Payment processing: Square (POS), PayPal (global)
- CRM systems: Zoho Invoice (Zoho CRM), Bill.com (Salesforce)
Frequently Asked Questions
What’s the difference between invoicing software and accounting software?
Invoicing software focuses specifically on creating and managing invoices, while accounting software includes invoicing plus full bookkeeping, financial reporting, and tax features. Many accounting platforms (QuickBooks, Xero) include robust invoicing, while standalone tools (Wave, FreshBooks) often add basic accounting features.
Can I use free invoicing software for my business?
Yes, free options like Wave and Zoho Invoice are legitimate, full-featured invoicing platforms. They make money from payment processing fees or optional add-ons rather than monthly subscriptions. Free plans work great for freelancers and small businesses under $100K revenue with straightforward invoicing needs.
How do payment processing fees work?
When customers pay invoices online, payment processors charge a percentage plus fixed fee per transaction. Standard rates are 2.9% + $0.30 for credit cards. For a $1,000 invoice, you’d pay $29.30 in fees, receiving $970.70. Bank transfers (ACH) cost less at 1% or flat fees.
Should I use invoicing software or just send PDF invoices?
Invoicing software automates reminders, tracks payments, integrates with accounting, and lets clients pay with one click. While PDF invoices are free, you’ll manually track who owes what and follow up on late payments. For businesses sending more than 5 invoices monthly, software pays for itself in time savings.
Can invoicing software handle recurring subscriptions?
Most invoicing platforms support recurring billing, automatically generating and sending invoices weekly, monthly, or annually. FreshBooks, QuickBooks, Xero, and Zoho Invoice all excel at subscription billing with automatic payment collection and customer management.
What happens if my client doesn’t pay?
Good invoicing software sends automatic payment reminders at intervals you set (3 days, 7 days, 14 days overdue). Most platforms can add late fees automatically. You’ll need to handle collections yourself, though some platforms integrate with collection agencies for seriously delinquent accounts.
Do I need separate invoicing software if I have accounting software?
If your accounting software (QuickBooks, Xero) includes robust invoicing features, you probably don’t need separate tools. However, some businesses prefer specialized invoicing software (FreshBooks) for superior ease of use and client-facing features, syncing data back to accounting software.
Can I accept payments in multiple currencies?
Yes, platforms like PayPal, Zoho Invoice, and Xero support multi-currency invoicing and payments. Expect currency conversion fees (typically 3-4% above the exchange rate). For regular international billing, choose software with native multi-currency support rather than converting everything to USD.