Invoice Software for Small Business: Top 12 Solutions Compared

Why Your Small Business Needs Invoice Software

Manual invoicing is time-consuming, error-prone, and unprofessional. Modern invoice software automates billing, tracks payments, and helps you get paid faster—often saving 10+ hours per month.

Key Features to Look For

• Professional templates: Customizable, branded invoices
• Automated reminders: Reduce late payments
• Payment tracking: Know who owes what at a glance
• Multiple payment methods: Credit cards, ACH, PayPal
• Recurring invoices: Automate subscription billing
• Expense tracking: Monitor business costs
• Reports: Understand your financial health
• Mobile app: Invoice on the go

Top 12 Invoice Software Solutions

1. InvoiceKit

Best for: Freelancers and small businesses seeking simplicity

Pricing: Free for 3 invoices/month, paid plans from $9/month

Pros:

• Extremely easy to use
• Beautiful, modern templates
• Recurring invoices included
• Custom payment instructions
• No credit card required for free plan

Cons:

• Newer platform (fewer integrations)
• Limited accounting features

2. FreshBooks

Best for: Service-based businesses

Pricing: From $19/month

Pros:

• Time tracking built-in
• Project management features
• Excellent mobile app
• Client portal

Cons:

• More expensive than competitors
• Client limits on lower tiers

3. QuickBooks Online

Best for: Growing businesses needing full accounting

Pricing: From $30/month

Pros:

• Comprehensive accounting features
• Inventory management
• Payroll integration
• Industry standard

Cons:

• Steep learning curve
• Expensive for basic invoicing
• Frequent price increases

4. Wave

Best for: Budget-conscious micro-businesses

Pricing: Free (payment processing fees apply)

Pros:

• Completely free invoicing
• Accounting included
• Receipt scanning

Cons:

• Limited customization
• No phone support
• Higher payment processing fees

5. Zoho Invoice

Best for: International businesses

Pricing: Free for 1 user, from $9/month for teams

Pros:

• Multi-currency support
• Multiple payment gateways
• Project time tracking
• Integrates with Zoho ecosystem

Cons:

• Interface feels dated
• Limited free plan

6. Xero

Best for: Businesses with bookkeepers/accountants

Pricing: From $13/month

Pros:

• Unlimited users
• Bank reconciliation
• Inventory tracking
• Popular with accountants

Cons:

• No free plan
• Payroll costs extra

7. Square Invoices

Best for: Retail businesses using Square POS

Pricing: Free (2.9% + $0.30 per transaction)

Pros:

• Free unlimited invoicing
• Seamless Square integration
• Fast payment processing

Cons:

• Basic features only
• Tied to Square ecosystem

8. PayPal Invoicing

Best for: Businesses already using PayPal

Pricing: Free (transaction fees apply)

Pros:

• Free to use
• Clients trust PayPal
• Fast payments

Cons:

• Very basic features
• Limited customization
• No accounting features

9. Invoice Ninja

Best for: Tech-savvy users wanting customization

Pricing: Free (self-hosted) or from $10/month (cloud)

Pros:

• Open-source option
• Highly customizable
• Client portal

Cons:

• Requires technical knowledge
• Interface not as polished

10. Sage Business Cloud

Best for: Established small businesses

Pricing: From $10/month

Pros:

• Trusted brand
• Comprehensive features
• Good reporting

Cons:

• Older interface
• Steeper learning curve

11. HoneyBook

Best for: Creative professionals and event businesses

Pricing: From $16/month

Pros:

• Beautiful client experience
• Contracts and proposals included
• Workflow automation

Cons:

• More expensive
• Overkill for simple invoicing

12. Bonsai

Best for: Freelancers wanting all-in-one solution

Pricing: From $24/month

Pros:

• Contracts, proposals, invoices
• Time tracking
• Tax calculator

Cons:

• Premium pricing
• No free plan

Comparison Table

Software	Starting Price	Free Plan	Best For
InvoiceKit	$9/month	Yes (3 invoices)	Simplicity
FreshBooks	$19/month	30-day trial	Service businesses
QuickBooks	$30/month	30-day trial	Full accounting
Wave	Free	Yes	Budget users

How to Choose the Right Software

Consider these factors:

1. Business size: Solopreneur vs team
2. Budget: What can you afford monthly?
3. Features needed: Basic invoicing or full accounting?
4. Industry: Some tools cater to specific industries
5. Integrations: Does it work with your existing tools?
6. Ease of use: How tech-savvy are you?

Our Recommendation

For most small businesses and freelancers, we recommend starting with InvoiceKit. It offers the perfect balance of simplicity, features, and affordability. The free plan lets you test it risk-free, and paid plans are significantly cheaper than competitors.

If you need full accounting features, consider QuickBooks or Xero. If you're on a tight budget, Wave is excellent despite its limitations.

Conclusion

The right invoice software can transform your billing process, improve cash flow, and save hours each month. Try a few options (most offer free trials) to find the perfect fit for your business. Start with InvoiceKit free today!